Prepay or invest
See the arithmetic of putting extra money into your home loan against investing it at a return you assume.
Savings and loans
EMI calculator
Work out the monthly instalment on a loan, the interest you pay in all, and what a prepayment saves.
% a year
The rate your lender quotes. A floating rate can change.
years
Prepayment
A loan of ₹50,00,000 at 8.5% for 20 years has an EMI of ₹43,391 a month. You would pay ₹54.14 lakh as interest, ₹1.04 crore in all.
- Total interest
- ₹54,13,879≈ ₹54.14 lakh · 52% of everything you pay
- Total payment
- ₹1,04,13,879≈ ₹1.04 crore
- Monthly EMI
- ₹43,391For 20 years. Loan amount ₹50,00,000.
Balance and interest, over time
Tap or hover the chart, or use the slider, to read any year.
- Balance owed
- Interest paid so far
After 20 years
Balance owed
₹0
Interest paid so far
₹54,13,879
Year-by-year table
| Year | Balance owed | Interest paid so far |
|---|---|---|
| 0 | ₹50,00,000 | ₹0 |
| 1 | ₹49,00,489 | ₹4,21,182 |
| 2 | ₹47,92,181 | ₹8,33,569 |
| 3 | ₹46,74,300 | ₹12,36,382 |
| 4 | ₹45,46,000 | ₹16,28,776 |
| 5 | ₹44,06,359 | ₹20,09,829 |
| 6 | ₹42,54,375 | ₹23,78,539 |
| 7 | ₹40,88,957 | ₹27,33,815 |
| 8 | ₹39,08,918 | ₹30,74,470 |
| 9 | ₹37,12,965 | ₹33,99,210 |
| 10 | ₹34,99,691 | ₹37,06,631 |
| 11 | ₹32,67,566 | ₹39,95,199 |
| 12 | ₹30,14,923 | ₹42,63,250 |
| 13 | ₹27,39,949 | ₹45,08,970 |
| 14 | ₹24,40,670 | ₹47,30,385 |
| 15 | ₹21,14,937 | ₹49,25,346 |
| 16 | ₹17,60,412 | ₹50,91,515 |
| 17 | ₹13,74,550 | ₹52,26,347 |
| 18 | ₹9,54,582 | ₹53,27,073 |
| 19 | ₹4,97,492 | ₹53,90,677 |
| 20 | ₹0 | ₹54,13,879 |
Where your payments go
Tap a segment to see its rupees.
Total interest₹54.14 lakh52% of total
Of the ₹1,04,13,879 you pay in all, ₹50,00,000 repays the loan and ₹54,13,879 is interest.
Repayment schedule
Show
| Year | Interest | Principal | Prepaid | Balance |
|---|---|---|---|---|
| 1 | ₹4,21,182 | ₹99,511 | ₹0 | ₹49,00,489 |
| 2 | ₹4,12,387 | ₹1,08,307 | ₹0 | ₹47,92,181 |
| 3 | ₹4,02,813 | ₹1,17,881 | ₹0 | ₹46,74,300 |
| 4 | ₹3,92,394 | ₹1,28,300 | ₹0 | ₹45,46,000 |
| 5 | ₹3,81,053 | ₹1,39,641 | ₹0 | ₹44,06,359 |
| 6 | ₹3,68,710 | ₹1,51,984 | ₹0 | ₹42,54,375 |
| 7 | ₹3,55,276 | ₹1,65,418 | ₹0 | ₹40,88,957 |
| 8 | ₹3,40,655 | ₹1,80,039 | ₹0 | ₹39,08,918 |
| 9 | ₹3,24,741 | ₹1,95,953 | ₹0 | ₹37,12,965 |
| 10 | ₹3,07,420 | ₹2,13,274 | ₹0 | ₹34,99,691 |
| 11 | ₹2,88,569 | ₹2,32,125 | ₹0 | ₹32,67,566 |
| 12 | ₹2,68,051 | ₹2,52,643 | ₹0 | ₹30,14,923 |
| 13 | ₹2,45,720 | ₹2,74,974 | ₹0 | ₹27,39,949 |
| 14 | ₹2,21,415 | ₹2,99,279 | ₹0 | ₹24,40,670 |
| 15 | ₹1,94,961 | ₹3,25,733 | ₹0 | ₹21,14,937 |
| 16 | ₹1,66,169 | ₹3,54,525 | ₹0 | ₹17,60,412 |
| 17 | ₹1,34,832 | ₹3,85,862 | ₹0 | ₹13,74,550 |
| 18 | ₹1,00,726 | ₹4,19,968 | ₹0 | ₹9,54,582 |
| 19 | ₹63,604 | ₹4,57,090 | ₹0 | ₹4,97,492 |
| 20 | ₹23,202 | ₹4,97,492 | ₹0 | ₹0 |
What this assumes
- The rate stays the same for the whole tenure, and the EMI is paid at the end of every month.
- Interest each month is the yearly rate divided by 12, applied to the balance owed.
- A prepayment keeps the EMI the same and shortens the loan.
What this does not do
- Processing fees, insurance and other charges.
- Rate changes on a floating-rate loan.
- Any tax benefit on the interest or principal.
- Whether a loan or a prepayment suits you.
What next
Retirement
Estimate the corpus your expenses need through retirement, what you are on track for, and the monthly gap.Inflation
See what prices could do to a sum of money over the years, for an inflation rate you choose.SIP
See what a fixed monthly investment in a mutual fund could grow to, for a return you assume.
How it works
Most loans in India are on a reducing balance. Every month the lender charges interest on the amount you still owe, and the rest of your fixed instalment (the EMI) repays part of the loan. Early instalments are mostly interest; later ones are mostly principal.
EMI = P x r x (1 + r)^n / ((1 + r)^n - 1)
P is the loan amount, r the monthly rate (the yearly rate divided by 12, as a fraction) and n the number of monthly instalments. With a 0% rate the EMI is simply P divided by n.
A worked example
A loan of ₹50,00,000 at 8.5% for 20 years has an EMI of ₹43,391. Over 240 instalments you pay ₹1,04,13,879 in all, of which ₹54,13,879 (52%) is interest. Adding ₹5,000 a month on top of the EMI ends the loan after 15 years 7 months, 4 years 5 months sooner, and cuts the interest by ₹13,89,250.
What it leaves out
- Processing fees, insurance and other charges the lender adds.
- A floating rate that changes during the loan.
- Tax benefits on interest or principal.
- Prepayment charges, which some loans have.
Questions people ask
How is an EMI calculated?
It is the fixed monthly payment that, with interest charged each month on the balance still owed, repays the loan in exactly the number of months you chose. The formula is shown above.
Why is so much of the early EMI interest?
Interest is charged on the balance owed, which is largest at the start. As each instalment repays principal, the balance and the monthly interest fall, so more of the same EMI goes to principal.
What does a prepayment do here?
The page keeps your EMI the same, so extra money lowers the balance faster and the loan ends sooner. It shows the months and the interest saved compared with the plain schedule.
Will my lender’s figure match?
It can differ slightly. Lenders may round the EMI, count days between instalments, or change the rate on a floating-rate loan. Use the lender’s schedule for the exact numbers.
Does this say whether I should take the loan?
No. It shows the arithmetic of the numbers you enter. Whether a loan or a prepayment suits you depends on things this page does not know.