Worked Example: ₹50 lakh home loan at 8.5% for 20 years
Inputs
- Loan Amount₹50,00,000
- Interest Rate8.5% p.a.
- Tenure20 years
Results
- Monthly EMI₹43,391
- Total Interest₹54,13,840
- Total Payment₹1,04,13,840
On a ₹50L loan, you pay more in interest (₹54L) than the principal over 20 years — prepayment or shorter tenure can save significantly.
How EMI Calculator Works
Input loan amount, annual interest rate, and tenure in months or years. EMI is calculated using the standard reducing balance formula.
Frequently Asked Questions
What is EMI?
EMI (Equated Monthly Installment) is a fixed payment made by a borrower to a lender on a specified date each month.
How is EMI calculated?
EMI = P × r × (1+r)^n / ((1+r)^n - 1), where P is principal, r is monthly rate, and n is number of months.
How does tenure affect EMI?
Longer tenure lowers EMI but increases total interest. A 15-year vs 20-year loan on ₹50L can save ₹15–20L in interest.
Disclaimer
- This calculator gives you an estimate only. It is not a promise of exact results.
- This is general information, not personal financial, tax, or legal advice.
- You are responsible for your own decisions. Talk to a qualified professional when it matters.
- Banks and lenders may add fees, insurance, or a different interest method. Your real EMI can differ.
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