EMI Calculator with Prepayment
Calculate loan EMI, total interest, and full amortization. See exactly how much interest and time a prepayment saves you.
How a loan EMI works
An Equated Monthly Instalment (EMI) is the fixed amount you pay your lender each month. It is calculated on a reducing-balance basis: each payment covers the interest due on the outstanding balance plus a portion of principal. As the balance falls, the interest component shrinks and more of each EMI goes toward principal.
The formula
EMI = P × r × (1+r)n ÷ ((1+r)n − 1), where P = principal, r = monthly rate (annual ÷ 12 ÷ 100), and n = tenure in months.
Worked example
For a ₹30,00,000 home loan at 8.5% for 20 years (240 months), the EMI is about ₹26,035. Over the full tenure you repay roughly ₹62.5 lakh — meaning ₹32.5 lakh is interest. This is why even a small prepayment early on saves so much.
The power of prepayment
Because early EMIs are mostly interest, a lump-sum prepayment in the first few years removes principal that would otherwise have accrued interest for decades. Use the prepayment fields to see the exact interest saved and the months knocked off your loan.
How to use this calculator
Set your loan amount, interest rate, and tenure with the sliders. Add an optional one-time prepayment and the month you would make it. The result shows your EMI, total interest, total payment, and a chart of your falling balance.
Frequently asked questions
How is EMI calculated?
EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1), where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the number of monthly instalments. This calculator uses that exact reducing-balance formula.
Does prepayment reduce my EMI or my tenure?
By default, a lump-sum prepayment keeps your EMI the same and shortens the tenure — this saves the most interest. This calculator shows exactly how many months and how much interest a prepayment saves.
What is an amortization schedule?
It is the month-by-month split of each EMI into interest and principal. Early EMIs are mostly interest; later EMIs are mostly principal. The chart shows your outstanding balance falling over time.
Is the interest rate fixed or floating?
This tool assumes a constant rate for the whole tenure. For floating-rate loans, re-run it whenever your rate changes to see the updated EMI and interest.
Does a lower tenure always cost less?
A shorter tenure means higher EMIs but far less total interest. A longer tenure lowers the EMI but increases total interest paid. Compare both using the tenure slider.
Are processing fees included?
No. The calculator covers principal and interest only. Add processing fees, insurance, and stamp duty separately when budgeting.
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Disclaimer: These calculators provide estimates for general information only and are not financial, tax, or investment advice. Figures use FY 2025-26 (AY 2026-27) rules and standard assumptions; your actual numbers may differ. Verify with a qualified professional before acting.