Know your monthly EMI, before you sign.

Enter your loan amount, interest rate, and tenure. PaisaCalc works out your exact monthly installment, total interest, and a full year-by-year repayment schedule.

How much loan can you actually afford?

Lenders typically cap your EMI at 40–50% of your monthly income — this is called FOIR (Fixed Obligation to Income Ratio). Work out a comfortable loan amount here first, then drop it straight into the calculator below.

40% — conservative
50% — typical bank max
10 yrs
15 yrs
20 yrs
25 yrs
30 yrs
Suggested max EMI
₹32,000 /mo
40% of ₹80,000 income, minus ₹0 existing obligations.
Loan amount you could afford
₹36,00,589
At 8.5% for 20 years.
Years
Months
Monthly EMI
₹21,700
Total interest₹26,08,000
Total payment₹51,08,000
Principal vs. interest, year by year
Principal paid
Interest paid
Amount (₹)
Year
Each bar is what you pay that year, split into principal (green) and interest (gold). Early years lean gold-heavy because interest is calculated on your remaining balance, which is still high - later years lean green as the balance shrinks. Hover a bar for exact figures.

Year-by-year amortization schedule

How your outstanding balance reduces every year. Click any year to see the exact month-by-month calculation.
Swipe left/right to see all columns →
YearOpening balancePrincipal paidInterest paidClosing balance

How tenure changes your EMI

Same loan amount and rate as above — here's how the monthly EMI and total interest trade off at different tenures.
TenureEMI /moTotal interestTotal payment

What if your rate changes?

Most home and personal loans in India are floating-rate, so this can happen mid-loan. Here's how your EMI shifts if the rate moves.
RateEMI /moChange vs currentTotal interest

Illustrative scenarios, not a prediction — actual floating-rate changes depend on your lender and the RBI repo rate.

How your down payment changes things

If you're buying a home or car, the loan amount above isn't fixed — it's the asset price minus what you put down. Click a row to apply it to the calculator.
Down paymentLoan amountEMI /moTotal interest

Should you switch lenders?

If another lender is offering a lower rate on your existing loan, here's whether switching is actually worth it once transfer costs are factored in.

Years
Months
Stay with current lender no change
₹21,479 /mo
Total interest left₹18,66,220
Switch lenders refinance
₹19,459 /mo
Total interest left₹15,02,620
Switching saves you ₹3,48,600 in interest, even after ₹15,000 in transfer costs.

Assumes you keep the same remaining tenure at the new lender — stretching the tenure further would lower the EMI but add back some interest.

How EMI is calculated

Your EMI is a fixed monthly payment, but the mix of principal and interest inside it changes every month.

The formula

EMI is calculated using your loan amount, the monthly interest rate, and the number of months in your tenure:

EMI = P × r × (1+r)n / ((1+r)n − 1)

Where P is your loan amount, r is your monthly interest rate (annual rate ÷ 12 ÷ 100), and n is your total number of monthly installments.

Why the split changes every month

Each month, interest is charged on whatever balance you still owe - this is called a reducing balance method. Early in the loan, your balance is at its highest, so a large share of your EMI goes toward interest and only a small share reduces the principal. As months pass and the balance shrinks, more of each EMI goes toward principal instead, even though the EMI amount itself stays the same.

Reduce tenure or reduce EMI - which is better?

When you make a one-time extra payment, your lender usually lets you choose: keep the EMI the same and finish the loan early (reduce tenure), or keep the tenure the same and lower the monthly EMI instead (reduce EMI). For the exact same prepayment amount, reducing tenure almost always saves more total interest, because you keep paying down principal at the original, more aggressive pace instead of easing off. Reducing EMI is worth it if your priority is lower monthly outgo rather than maximum interest savings.

Common questions

What is EMI?

EMI stands for Equated Monthly Installment - a fixed amount you pay every month toward a loan, made up of a principal portion and an interest portion, until the loan is fully repaid.

Why does the interest portion of my EMI go down over time?

Interest is calculated on your remaining loan balance each month. Early on, the balance is high, so more of your EMI goes toward interest. As you repay principal, the balance shrinks, so a bigger share of each later EMI goes toward principal instead.

Does a longer loan tenure mean I pay less overall?

No - a longer tenure lowers your monthly EMI, but you pay interest for more months, so the total interest paid over the life of the loan is usually higher. A shorter tenure means a higher EMI but less total interest.

Does prepaying a loan reduce total interest?

Yes. Any extra payment toward principal, on top of your regular EMI, reduces the balance that future interest is calculated on, which lowers total interest paid and can shorten your tenure. Use the "Model an extra payment" option above to see the exact numbers for your loan.

Should I reduce my tenure or reduce my EMI when I prepay?

Reducing your tenure while keeping the EMI the same usually saves more total interest, since you keep paying down principal aggressively rather than easing up. Reducing your EMI instead keeps your monthly outgo lower from that point on, which helps more if cash flow is tighter, but it saves less interest overall for the same prepayment amount.

All PaisaCalc calculators

Eight free tools, all built the same way — exact date-based math, year-by-year breakdowns, and no signup.