Home loans are the largest and longest loans most people take, so the EMI and the total interest deserve a careful look. Enter the loan amount, the annual rate and the tenure to get the EMI, the total interest over the life of the loan and a schedule showing how slowly the principal falls in the early years.
Because interest dominates the early payments, prepaying even small amounts in the first years saves far more than the same amount later. Use the extra-payment field to see the effect on the payoff date.
Loan and EMI Calculator
A fixed-rate loan is repaid in equal monthly instalments, called EMIs in many markets. Each payment covers that month's interest first and puts the remainder toward the balance, so early payments are mostly interest and late payments are mostly principal. The loan calculator shows the monthly payment, the total interest over the life of the loan, the payoff date and a year-by-year schedule; switch to the monthly view to see every payment.
Borrowing $25,000 over five years at 7.5% costs about $501 a month and roughly $5,057 in interest. Add an extra $100 a month and the calculator recomputes the schedule: the loan is paid off about eleven months sooner and the interest bill falls by around $1,000. The figures assume monthly compounding and no fees; your lender's quote may differ slightly because of rounding, fees or a different day-count convention.
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Frequently Asked Questions
How is home loan EMI calculated?
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), with P the loan, r the monthly rate and n the number of months. A ₹50 lakh loan at 8.5% for 20 years has an EMI of about ₹43,391.
How much interest will I pay in total?
Often as much as the loan itself over 20 years. The schedule shows the exact figure and how prepayment reduces it.
Should I choose a shorter tenure?
A shorter tenure raises the EMI but cuts total interest sharply. Choose the shortest tenure whose EMI you can comfortably afford, and prepay when you can.
