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Plan your home, car, or personal loan. Calculate your monthly EMI and total interest payable instantly.
Monthly EMI
Interest Impact: Over 5 years, you will pay 0% of the loan amount as interest alone.
Equated Monthly Installment (EMI) is calculated using the reducing balance method. The formula is: E = P x R x (1+R)^N / [(1+R)^N-1]
1. Increase Down Payment: Paying more upfront reduces the principal amount, directly lowering your EMI.
2. Prepay When Possible: Using annual bonuses to prepay even 5% of your loan can reduce your tenure by years.
3. Negotiate Rate: A difference of just 0.5% in interest rate can save you lakhs of rupees over a 20-year home loan.
EMI stands for Equated Monthly Installment. It is a fixed payment amount made by a borrower to a lender at a specified date each calendar month.
A longer tenure reduces your monthly EMI amount but significantly increases the total interest you pay over the life of the loan.
This calculator uses the standard flat-rate reducing balance method used by 99% of banks (HDFC, SBI, ICICI, etc.). However, processing fees are not included.
Shorter tenure means higher EMI but much less total interest. Choose based on your monthly cash flow capacity.