Calculators / Loans
Loans
Loan EMI
Know the EMI before you sign. On a 20-year loan, interest can equal the loan itself.
About the loan EMI calculator
The EMI is your fixed monthly payment. The number that matters more, and the one the brochure hides, is the total interest over the life of the loan.
How is the EMI worked out?
From three things: the amount borrowed, the interest rate, and the tenure. Raise the tenure and the EMI drops but the total interest climbs, often by a lot.
Why does a longer loan cost so much more?
Because you owe the balance for longer, and interest is charged on that balance every month. Two loans with the same EMI but different tenures can differ by lakhs in total interest.
Should I prepay?
Usually yes if the loan rate is higher than what your savings earn after tax, and most of all if you prepay early. See the Prepayment guide for the full decision.