EMI Calculator

An EMI calculator turns three numbers — how much you borrow, the annual interest rate, and the tenure — into the fixed monthly amount you will repay on a reducing-balance loan. It also shows the total interest you will pay over the life of the loan and the total of principal plus interest.

Most home, car, personal and education loans in India are reducing-balance loans: interest each month is charged only on the outstanding balance, not on the original amount. That is the loan this calculator models. It does not model flat-rate loans, which quote a much lower headline rate for a similar real cost.

Each EMI is made up of a principal part and an interest part. In the early months of a standard reducing-balance loan the interest part is generally larger, because interest is calculated on a higher outstanding balance. As the balance falls, the interest part generally shrinks and the principal part grows, even though the EMI itself stays the same.

This is why paying extra early in a loan saves disproportionately more interest than paying the same amount near the end — you are cutting the balance while it is still accruing the most interest.

The amortization schedule lists every EMI: the opening balance, the EMI, how much of it went to principal, how much to interest, and the closing balance. Add it up over a calendar year and you get the year-wise summary — total EMIs paid, principal repaid, interest paid and the balance left at year end.

The monthly view is useful for checking a specific installment or working out your outstanding balance after a given number of EMIs. The yearly view is easier for planning and for comparing tenures.

A part payment (or part-prepayment) is a lump sum you pay on top of your regular EMI, which goes entirely to reducing the principal. After a part payment you usually get one of two choices from the lender: keep the tenure the same and lower the EMI, or keep the EMI the same and shorten the tenure.

Keeping the EMI and shortening the tenure normally saves more total interest, because you clear the balance faster. Lowering the EMI frees up monthly cash flow instead. This calculator shows both outcomes side by side, along with the interest saved and the net saving after any prepayment charge you enter.

Foreclosure — also called full prepayment or loan pre-closure — means paying off the entire outstanding loan in one go, before the end of the tenure, so the loan account is closed. It is different from a part payment, where the loan continues with a lower EMI or a shorter tenure.

The starting point is the outstanding principal from the amortization schedule at the moment you want to close the loan. If you foreclose between EMI dates, interest accrues for those extra days — this tool can add a daily simple-interest estimate on the outstanding principal, or you can use the figure from your lender's settlement quote.

On top of that, some loans carry a prepayment or foreclosure charge, plus tax on that charge. This calculator never assumes a charge: you enter the percentage or fixed amount from your own loan agreement, and it adds it to give an estimated settlement amount. A lender's official statement can still differ because of their day-count conventions, value dates, rounding and any other contractual dues.

It depends on your loan — there is no single rule that makes every loan in India free to prepay. Whether a charge applies turns on the loan type and purpose, whether the rate is floating, fixed or a combination, the type of lender, the sanction or renewal date, the lender's approved policy, and what is written in your sanction letter, loan agreement and Key Facts Statement (KFS).

Under the Reserve Bank of India (Pre-payment Charges on Loans) Directions, 2025 — which apply to loans and advances sanctioned or renewed on or after 1 January 2026 — regulated entities generally cannot levy prepayment charges on floating-rate loans given to individuals for purposes other than business, whether the prepayment is partial or full, irrespective of the source of funds and with no minimum lock-in. For floating-rate loans taken for business purposes by individuals and micro & small enterprises, whether a charge applies depends on the category of the lender and the sanctioned amount. Outside these protected cases, a charge may apply as per the lender's board-approved policy; for term loans it is charged on the amount being prepaid, and it must have been disclosed in the sanction letter, loan agreement and applicable KFS. For dual, special or combination-rate loans, the treatment depends on whether the loan is on a floating or fixed rate at the time of prepayment.

Always check your own sanction letter, loan agreement and KFS for the charge that applies to you, and enter that figure in the calculator. This is a summary for planning, not legal or financial advice.

Foreclosure pays off the whole outstanding loan and closes the account. A part payment pays down only part of the principal and the loan continues — either with a lower EMI or a shorter tenure, depending on the lender's treatment and your choice. Use foreclosure when you have enough to clear the loan and want to be debt-free; use part payments to chip away at the principal over time while keeping the loan running.