Selvayana: EMI calculatorEducational estimate, not investment advice. Selvayana is not registered with SEBI as an Investment Adviser or Research Analyst. Figures use the assumptions shown and are not predictions.
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Detailed breakdown
EMI calculator: a quick guide
What is an EMI?
An equated monthly instalment (EMI) is the fixed monthly payment that repays a loan, interest and principal together, over its tenure.
How this calculator works it out
EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1) P = loan amount, r = monthly interest rate, n = number of months
Early EMIs are mostly interest; the principal share grows over time.
An example
A ₹50 lakh home loan at 8.5% for 20 years has an EMI of about ₹43,391. Over the full term you would pay about ₹54.14 lakh in interest, more than the loan itself. Paying one extra EMI a year, spread across the months, would close it in about 16 years 7 months.
Good to know
Most home loans have floating rates, so the EMI or tenure changes when rates move.
Lenders also charge processing fees and insurance, which are not part of the EMI.
How it's calculated
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r is the monthly interest rate and n is the number of months. Early EMIs are mostly interest; the principal share grows over time.
Common questions
How can I lower my EMI?
A longer tenure lowers the EMI but raises total interest. A bigger down payment or a lower rate lowers both.
Does my home loan give tax benefits?
Under the old regime, principal counts under Section 123 (old 80C) and interest on a self-occupied home up to ₹2 lakh is deductible. Use the income tax calculator to compare regimes.
For awareness only. Not investment advice or a recommendation to buy, sell or hold any security or product. All figures are estimates based on the inputs and assumptions shown; actual results will differ and may be much lower. No return is guaranteed. Investments in securities market are subject to market risks. Read all related documents carefully before investing. Consult a SEBI Registered Investment Adviser before acting. Printed from Selvayana on .