EMI Calculator
Monthly EMI, total interest and total payment for any loan.
- Principal₹25 L
- Interest₹27.07 L
How it works
Banks use the reducing-balance method: each EMI first pays that month's interest on the remaining loan, and the rest reduces the principal. Longer tenures lower your EMI but raise total interest sharply.
Example
A ₹25 lakh home loan at 8.5% for 20 years gives an EMI of about ₹21,700. You repay about ₹52 lakh in total — roughly ₹27 lakh of it is interest.
FAQs
What is a reducing-balance loan?
Interest is charged only on the outstanding principal, which shrinks with every EMI. This is how all home, car and personal loans in India work.
Fixed vs floating rate — which is better?
Fixed rates give certainty; floating rates (linked to repo rate) usually cost less over long tenures but your EMI can change.
Why does a longer tenure cost so much more?
You pay interest for more months on a slowly-shrinking balance. A 20-year loan can cost double the borrowed amount in total.