EMI Calculator with Prepayment
Calculate home loan, car loan, or personal loan EMI with a complete repayment schedule. Add part payments to any month and instantly see how much interest you save and how many months you cut from your tenure.
₹50.00 L
| Year | EMI Paid | Principal | Interest | Prepayment | Closing Balance |
|---|---|---|---|---|---|
| 2026 | ₹2,81,829 | ₹34,642 | ₹2,47,187 | — | ₹49,65,358 |
| 2027 | ₹4,83,136 | ₹63,518 | ₹4,19,619 | — | ₹49,01,840 |
| 2028 | ₹4,83,136 | ₹69,132 | ₹4,14,004 | — | ₹48,32,709 |
| 2029 | ₹4,83,136 | ₹75,243 | ₹4,07,894 | — | ₹47,57,466 |
| 2030 | ₹4,83,136 | ₹81,893 | ₹4,01,243 | — | ₹46,75,573 |
| 2031 | ₹4,83,136 | ₹89,132 | ₹3,94,004 | — | ₹45,86,441 |
| 2032 | ₹4,83,136 | ₹97,010 | ₹3,86,126 | — | ₹44,89,431 |
| 2033 | ₹4,83,136 | ₹1,05,585 | ₹3,77,551 | — | ₹43,83,845 |
| 2034 | ₹4,83,136 | ₹1,14,918 | ₹3,68,218 | — | ₹42,68,927 |
| 2035 | ₹4,83,136 | ₹1,25,076 | ₹3,58,061 | — | ₹41,43,852 |
| 2036 | ₹4,83,136 | ₹1,36,131 | ₹3,47,005 | — | ₹40,07,721 |
| 2037 | ₹4,83,136 | ₹1,48,164 | ₹3,34,972 | — | ₹38,59,557 |
| 2038 | ₹4,83,136 | ₹1,61,260 | ₹3,21,876 | — | ₹36,98,296 |
| 2039 | ₹4,83,136 | ₹1,75,514 | ₹3,07,622 | — | ₹35,22,782 |
| 2040 | ₹4,83,136 | ₹1,91,028 | ₹2,92,108 | — | ₹33,31,754 |
| 2041 | ₹4,83,136 | ₹2,07,913 | ₹2,75,223 | — | ₹31,23,841 |
| 2042 | ₹4,83,136 | ₹2,26,291 | ₹2,56,845 | — | ₹28,97,550 |
| 2043 | ₹4,83,136 | ₹2,46,293 | ₹2,36,843 | — | ₹26,51,257 |
| 2044 | ₹4,83,136 | ₹2,68,063 | ₹2,15,073 | — | ₹23,83,194 |
| 2045 | ₹4,83,136 | ₹2,91,757 | ₹1,91,379 | — | ₹20,91,436 |
| 2046 | ₹4,83,136 | ₹3,17,546 | ₹1,65,590 | — | ₹17,73,890 |
| 2047 | ₹4,83,136 | ₹3,45,614 | ₹1,37,522 | — | ₹14,28,276 |
| 2048 | ₹4,83,136 | ₹3,76,163 | ₹1,06,973 | — | ₹10,52,113 |
| 2049 | ₹4,83,136 | ₹4,09,413 | ₹73,723 | — | ₹6,42,700 |
| 2050 | ₹4,83,136 | ₹4,45,601 | ₹37,535 | — | ₹1,97,099 |
| 2051 | ₹2,01,307 | ₹1,97,099 | ₹4,208 | — | ₹0 |
TL;DR
Your EMI is fixed by one formula: EMI = P × r × (1+r)n ÷ ((1+r)n − 1), where r is the monthly rate (annual ÷ 12 ÷ 100) and nis the number of months. The amount stays the same every month, but the split changes — early EMIs are mostly interest, later ones are mostly principal. That is why prepaying early saves the most interest, and why a "flat" rate quoted at the same percentage costs far more than a reducing-balance rate. Enter your numbers above; the figures below are worked examples to show the structure.
The EMI formula, term by term
Every reducing-balance lender — banks, NBFCs, credit unions — computes a fixed installment from the same equation:
- P — the principal, i.e. the amount actually borrowed (loan amount minus any down payment).
- r — the monthly interest rate as a decimal. Take the annual rate, divide by 12, then by 100. A 9% annual rate gives r = 9 ÷ 12 ÷ 100 = 0.0075.
- n — the tenure in months. A 5-year loan is n = 60; a 20-year home loan is n = 240.
A common mistake is plugging the annual rate straight into the formula. It must be the monthly rate, and the tenure must be in months — both are easy to get wrong by a factor of 12. The result is a single number you pay every month until the balance reaches zero.
Worked check: P = 1,000,000, annual rate = 9% (r = 0.0075), n = 60 months. Plugging in gives EMI ≈ 20,758.36 per month. Over 60 months you pay 1,245,501.31 — so total interest ≈ 245,501.31.
How the principal / interest split shifts: a worked amortization
The EMI is constant, but what each payment does changes every month. Interest is charged on the outstanding balance, so as the balance falls, less of each EMI is interest and more is principal. Below is the actual month-by-month split for the worked loan above — 1,000,000 borrowed at 9% for 5 years (60 months), EMI 20,758.36. Only selected months are shown; the full schedule is in the calculator.
| Month | Opening balance | Interest | Principal | Closing balance |
|---|---|---|---|---|
| 1 | 1,000,000.00 | 7,500.00 | 13,258.36 | 986,741.64 |
| 12 | 848,564.10 | 6,364.23 | 14,394.12 | 834,169.98 |
| 30 | 572,272.93 | 4,292.05 | 16,466.31 | 555,806.63 |
| 60 | 20,603.83 | 154.53 | 20,603.83 | 0.00 |
In month 1, interest (7,500) is about 36% of the EMI — over a third. By month 60 the interest is just 154.53 and the payment is almost pure principal. Across the whole first year you pay 83,270 in interest but only retire 165,830 of principal; in the final year the ratio flips. The last EMI is trimmed slightly so the balance lands exactly on zero.
Reducing-balance vs flat interest: why "same rate" is a trap
Two lenders can both quote "9%" and charge wildly different amounts, because they mean different things.
- Reducing balance — interest is charged only on the outstanding principal, which falls every month. This is what the EMI formula and every home-loan amortization use.
- Flat rate — interest is charged on the full original principal for the entire tenure, even though you are steadily paying it down. Common on some car loans and personal loans.
For our worked loan — 1,000,000 over 5 years, both quoted at 9%:
| Method (both "9%") | Monthly payment | Total interest |
|---|---|---|
| Reducing balance | 20,758.36 | 245,501.31 |
| Flat rate | 24,166.67 | 450,000.00 |
The flat rate costs about 83% more interest for the identical headline rate. As a rule of thumb, a flat rate is roughly equivalent to a reducing rate nearly double its size. Always ask which method a quote uses, and compare on the reducing-balance (or APR) basis. This calculator uses the reducing-balance method.
Quick reference: EMI per 100,000 borrowed
EMI scales linearly with the principal, so this table lets you estimate any loan in your head. Find your rate and tenure, then multiply by how many lots of 100,000 you are borrowing. For a 3,000,000 loan, multiply the figure by 30. Values are the reducing-balance EMI for 100,000 of principal, rounded to the nearest unit.
| Annual rate | 5 years | 10 years | 15 years | 20 years |
|---|---|---|---|---|
| 7% | 1,980 | 1,161 | 899 | 775 |
| 8% | 2,028 | 1,213 | 956 | 836 |
| 9% | 2,076 | 1,267 | 1,014 | 900 |
| 10% | 2,125 | 1,322 | 1,075 | 965 |
| 12% | 2,224 | 1,435 | 1,200 | 1,101 |
Notice how doubling the tenure does not halve the EMI — a longer loan front-loads far more interest. At 9%, stretching from 10 to 20 years drops the EMI from 1,267 to 900 per 100,000, but you pay it for twice as long.
How prepayment cuts interest, and reduce-tenure vs reduce-EMI
A prepayment (part payment) is an extra amount paid on top of the regular EMI. Because interest is charged only on the outstanding balance, the entire prepayment reduces principal directly — and every future month's interest is computed on a smaller number. The earlier you prepay, the longer that smaller balance compounds in your favour.
On the worked loan (1,000,000 at 9% for 5 years), a single 100,000 prepayment in month 13, applied to reduce tenure, ends the loan in 54 months instead of 60 and cuts total interest from 245,501 to about 206,450 — roughly 39,051 saved from one extra payment.
When you prepay, lenders typically offer two ways to apply it:
- Reduce tenure — EMI stays the same, the loan finishes sooner. Saves the most interest because you stop paying it earlier. This is the calculator's default.
- Reduce EMI — tenure stays the same, the monthly payment drops. Eases cash flow but you keep paying for the full original term, so total interest saved is smaller.
Prepayment rules vary by lender and loan type. Many floating-rate home loans allow penalty-free prepayment, while some fixed-rate or non-housing loans charge a fee. Always confirm your specific terms before planning around them.
People also ask about EMI
How is EMI calculated from interest rate and tenure?
EMI = P × r × (1+r)n ÷ ((1+r)n − 1). P is the principal, r is the monthly rate (annual rate ÷ 12 ÷ 100), and n is the tenure in months. The two most common errors are using the annual rate instead of the monthly rate, and the tenure in years instead of months. For 1,000,000 at 9% over 5 years, r = 0.0075 and n = 60, giving an EMI of about 20,758.
Why is so much of my early EMI just interest?
Interest each month is charged on the outstanding balance, which is largest at the start. In month 1 of the worked loan, 7,500 of the 20,758 EMI is interest. As the balance falls, the interest share shrinks and the principal share grows, until the final EMIs are almost entirely principal. The EMI amount never changes — only its internal split does.
What is the difference between flat and reducing-balance interest?
Reducing-balance charges interest only on the unpaid principal, which falls over time. Flat-rate charges interest on the full original principal for the whole tenure. For the same headline rate, flat is much more expensive: 1,000,000 at 9% for 5 years costs 245,501 in interest on reducing balance but 450,000 on flat — about 83% more. A flat rate is roughly equivalent to a reducing rate nearly double its size.
Should I reduce tenure or reduce EMI when I prepay?
Reduce-tenure keeps the EMI the same and ends the loan sooner, which saves the most interest because you stop paying it earlier. Reduce-EMI keeps the term and lowers the monthly payment, easing cash flow but saving less overall. If you can afford the current EMI, reduce-tenure is usually the better choice for total savings.
Does prepaying early really save more than prepaying later?
Yes. A prepayment reduces the principal that all future interest is charged on, so an early prepayment removes more future interest than the same amount paid near the end. On the worked loan, a 100,000 prepayment in month 13 saves about 39,051 in interest and ends the loan six months early; the same amount paid in the last year would save very little.
Are the figures on this page exact for my loan?
They are accurate worked examples using the standard reducing-balance formula, but your lender may differ slightly due to rounding, day-count conventions, processing fees, insurance, or a different compounding basis. Treat all figures here and in the calculator as estimates and confirm the exact EMI, schedule, and prepayment terms with your lender before deciding.
Disclaimer
This calculator and the worked examples are for general information and estimation only, not financial advice. Figures are computed with the standard reducing-balance EMI formula and may differ from your lender's due to rounding, fees, insurance, taxes, or day-count conventions. Always confirm the exact EMI, repayment schedule, and prepayment terms with your bank or a qualified financial advisor before making a decision.