EMI calculator with prepayment
What will this loan cost me each month, and in all?
for 20 yrs
Interest and principal by year
How this is calculated
Rules checked against their sources on 27 September 2026. Tax year FY2026-27.
What an EMI is, and what decides it
An equated monthly instalment is the one fixed amount you pay every month until the loan is cleared. Three numbers set it: how much you borrow, the interest rate, and how long you take. Indian banks charge interest on the reducing balance, so each month's interest is worked out on what you still owe, not on the original amount. That is why the first years of a home loan are mostly interest and the last years mostly principal, and why a small change in the rate moves the total interest far more than it moves the EMI.
The two mistakes most people make
Looking only at the EMI. A ₹50 lakh loan at 8.5% over 20 years costs about ₹43,400 a month, which sounds manageable, and about ₹54 lakh in interest over its life, which is more than the loan itself. Stretching to 30 years lowers the EMI by a fifth and raises the interest by half again. The total-interest line on this page is the number to compare offers by.
Ignoring prepayment. Because interest is charged on the balance, every rupee paid early stops earning interest for the bank from that month on. Floating-rate loans to individuals carry no prepayment penalty in India, so paying one extra EMI a year, or putting a bonus against the loan, can cut years off the tenure. The prepayment fields here keep the EMI unchanged and shorten the loan, which is what most lenders do by default; ask your bank if you would rather keep the tenure and lower the EMI.
Tax, in the old regime only
A self-occupied home gives two deductions under the old regime: interest up to ₹2 lakh a year under Section 24(b), and the principal under Section 80C within the ₹1.5 lakh cap you share with EPF, PPF, ELSS and life-insurance premiums. An education loan gives a deduction for the whole interest under Section 80E for eight years from the first repayment. The new regime, which most salaried people now use, offers neither, so the tax saving shown here only applies if the old regime is the better one for you overall. Car, personal and other loans get no deduction at all.
How this fits a retirement plan
An EMI is a spending line that ends on a known date. In a full plan the money it frees up when the loan closes is what funds the years after it, and a prepayment is a choice between a certain saving on the loan and an uncertain return on an investment. Eazyretire's plans carry loans with their tenure and prepayments, so you can see the effect on the age you can retire rather than on the loan alone.
Questions people ask
- Is the EMI the same every month?
- Yes for a fixed-rate loan, and for a floating-rate loan until the bank changes the rate. When the rate moves, most banks keep the EMI and change the tenure instead; you can ask for the opposite.
- Does prepaying reduce the EMI or the tenure?
- By default banks shorten the tenure and keep the EMI, which saves the most interest. This calculator does the same. Lowering the EMI instead is possible on request and saves less.
- Is there a prepayment penalty?
- Not on floating-rate loans to individuals, by RBI direction. Fixed-rate loans may carry a fee, typically 2 to 4 percent of the amount prepaid; check your sanction letter.
- Why is the interest so much more than I expected?
- Because it is charged for the whole tenure on a balance that falls slowly at first. Over 20 years at 8.5 percent, interest adds up to more than the amount borrowed. Shorter tenures and early prepayments are the two levers.
- Which tax regime should I assume?
- The deductions shown apply only under the old regime. If you file under the new regime, which has lower slab rates but no home-loan deductions, set your slab to 0 here and compare the two regimes with the income-tax calculator.
Want the whole picture?
A free Eazyretire plan puts this number next to your income, savings and spending and tells you whether your money lasts to the age you plan for, and what to change if it will not.