Home Loan EMI Calculator with Prepayment

Your home loan EMI is a fixed monthly payment that combines both principal and interest, calculated using the reducing-balance method — interest is charged only on the outstanding principal each month, not on the original loan amount for the full tenure. That's why the same EMI has a very different principal-to-interest split in year one versus year fifteen of your loan.

Three inputs drive your EMI: loan amount, annual interest rate, and tenure. A higher loan amount or higher rate increases your EMI. A longer tenure usually lowers your monthly EMI but increases the total interest you pay over the life of the loan.

On a ₹75 lakh loan at 8.50% p.a. for 20 years (240 months), the EMI works out to roughly ₹65,000/month, with total interest exceeding the principal over the full tenure. Shortening the tenure to 15 years raises the EMI but reduces total interest paid, since the outstanding balance is paid down faster.

Early EMIs are interest-heavy because the outstanding principal is still high. As the loan matures, the interest component falls and the principal component rises. This matters for prepayment and balance transfer decisions — prepaying earlier in the loan cycle saves more interest than prepaying near the end, because you're shrinking the base on which future interest is calculated.

Compare scenarios rather than a single number: test your EMI across nearby rate bands (e.g., 7.95%, 8.25%, 8.75%) and across 15-, 20-, and 25-year tenures to see whether a lower EMI is genuinely affordable or simply defers cost. For balance transfers, hold your remaining principal and residual tenure constant, change only the rate, and compare total interest saved against transfer costs (processing fee, valuation, legal, MOD/stamp duty, GST).