EMI & Loan Amortization Calculator
Calculate your monthly home loan, car loan, or personal loan installment, total interest payable, and full loan amortization breakdown in India.
What does this EMI breakdown mean for your wallet?
For a loan of ₹40,00,000 over 20 years at 8.5%, your monthly EMI is ₹34,713. Over the entire loan life, you will pay ₹43,31,103 in pure interest — meaning you pay ₹83,31,103 total to borrow ₹40,00,000.
- Total interest paid represents 52% of your total outflow. On a 20+ year home loan, interest often equals or exceeds the borrowed principal!
- In the early years of any long-term loan, more than 70% of each monthly EMI goes toward interest rather than paying down principal.
- Check our Loan Prepayment Calculator to see how paying just 1 extra EMI per year can save you several lakhs in interest.
How This Calculator Works
The standard reducing balance formula calculates equal monthly installments based on borrowed principal P, monthly interest rate r, and total tenure in months n.
EMI = [P × r × (1 + r)^n] / [(1 + r)^n - 1]Variables in Formula:
Worked Step-by-Step Example
Taking a ₹40 Lakh home loan at 8.5% interest for 20 years (240 monthly payments).
Key takeaway: You pay ₹43.3 Lakhs in interest alone on a ₹40 Lakh loan. Strategic prepayments are essential to reclaim this wealth.
Common Mistakes to Avoid
⚠ Stretching tenure to 30 years to lower EMI
While extending from 20 to 30 years marginally lowers your monthly EMI, it massively increases total interest paid by 40% to 60%.
⚠ Borrowing beyond 40% of net monthly salary
A total debt EMI-to-income ratio exceeding 40% leaves you vulnerable during unexpected salary pauses or emergency expenses.
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