EMI Calculator
Loan instalment, interest and amortisationLoan details Reducing balance, monthly rests
Interest is computed on the reducing balance with monthly rests, which is how banks and housing finance companies in India calculate a term loan. Processing fees, insurance and any foreclosure charge are not included.
Amortisation schedule Click a year to open the months
Reading of the position
What this EMI calculator does
An equated monthly instalment is a fixed payment covering both interest and principal, worked out so the loan closes exactly at the end of the tenure. This calculator gives the instalment, the total interest you will pay, and a full month-by-month breakdown of where each payment goes.
- Instalment, total interest and total outgo for any loan amount, rate and tenure
- Year-by-year amortisation that opens into individual months
- Part prepayment — see whether shortening the tenure or reducing the instalment saves more
- Principal against interest shown visually, so the true cost of a long tenure is obvious
- A printable schedule you can save as a PDF
How the instalment is worked out
The formula is E = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), where P is the amount borrowed, r is the monthly rate of interest (the annual rate divided by twelve, expressed as a decimal) and n is the number of monthly instalments.
Why early instalments are almost all interest
Interest each month is charged on the balance still outstanding. Early on that balance is close to the full loan, so most of the instalment goes to interest and very little reduces the principal. As the balance falls the split reverses. On a twenty-year home loan the halfway point in principal repayment usually arrives well past the halfway point in time.
Prepayment — shorten the tenure or cut the instalment?
Shortening the tenure almost always saves more interest, because you stop paying interest on the outstanding balance sooner. Reducing the instalment eases monthly cash flow but keeps you in the loan for the full term. This calculator computes both, so you can see the difference in rupees rather than argue it in principle.
Tax on a home loan
Under the Income-tax Act, 2025, interest on a self-occupied house is deductible up to ₹2,00,000 a year under Section 22 in the old regime, and is not deductible at all in the new regime. Interest on a let-out property is deductible in full against rent, though the loss you can set off against other heads is capped. Repayment of principal qualifies under Section 123, within the overall ₹1,50,000 ceiling, and again only in the old regime.
Disclaimer
This calculator gives an indicative repayment schedule from the figures you enter. It assumes a fixed rate of interest on a reducing balance with monthly rests. It does not account for a floating rate that changes during the term, processing or documentation fees, insurance premiums, statutory charges, part-period interest before the first instalment, or any prepayment or foreclosure charge your lender may levy. The sanction letter and repayment schedule issued by your lender govern, and their figures will differ from these. Nothing here is financial advice or an offer of credit, and no liability is accepted for any action taken on the basis of this output.