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Rajkumar Anguluri·Software Engineer · Founder, Artha Engine·Last reviewed 8 April 2026·Methodology

Independent decision-support tool. Artha Engine is not a financial services provider, does not sell loans or insurance, and has no commission relationships with banks or insurers.

Calculator

EMI Calculator

What's the monthly EMI, how much goes to interest, and what happens if you change the rate or tenure?

Loan details

Enter the principal, rate, and tenure. The EMI updates as you change any input.

₹50L

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Verdicthigh confidence

Your monthly EMI

₹43,391

₹43,391 per month

Lifetime interest exceeds the principal. Consider a shorter tenure or partial prepayments.

Stress-test with a 1% rate increase and look at prepayment savings.

Loan principal

₹50L

Total interest

₹54.1L

Total payment

₹1Cr

Interest share

52.0%

Share of your total payment that goes to interest.

Outstanding balance

Year-end principal remaining on the loan.

₹50L₹25L₹0
Yr 1Yr 5Yr 9Yr 12Yr 16Yr 20

Interest vs principal per year

Each year's EMI split into interest and principal.

₹5L₹2.5L₹0
Yr 1Yr 5Yr 9Yr 12Yr 16Yr 20

Amortization

Year-by-year principal vs. interest paid down.

YearEMI paidPrincipalInterestBalance
1₹5,20,692₹99,511₹4,21,182₹49,00,489
2₹5,20,692₹1,08,308₹4,12,386₹47,92,181
3₹5,20,692₹1,17,880₹4,02,813₹46,74,300
4₹5,20,692₹1,28,301₹3,92,394₹45,46,000
5₹5,20,692₹1,39,640₹3,81,053₹44,06,359

Breakdown

  • Principal repaid₹50L48.0%
  • Interest paid₹54.1L52.0%

Benchmarks

  • Rate -1%

    +7.7%

    You

    ₹43.4K

    Benchmark

    ₹40.3K

    What you'd pay if rates dropped by 1%.

  • Rate +1%

    -6.9%

    You

    ₹43.4K

    Benchmark

    ₹46.6K

    Stress test for a 1% rate hike.

  • Tenure +5 years

    +7.8%

    You

    ₹43.4K

    Benchmark

    ₹40.3K

    Lower EMI but more interest overall.

What moves the result most

Holding everything else fixed, here is how the headline shifts when each input swings by a typical range.

Principal-₹8.7K ₹8.7K
-20%+20%
Tenure₹7.6K -₹3.6K
-30% years+30% years
Interest rate-₹5.2K ₹5.5K
-20% rate+20% rate

You'll pay more in interest than the loan principal

At this rate and tenure, the lifetime interest exceeds the original loan amount. A shorter tenure or partial prepayments can dramatically cut the total cost.

Interest to principal

1.08x

More than half of every EMI is interest

Early-tenure EMIs are interest-heavy. Prepayments made in the first 5-7 years deliver the highest saving.

Interest share of total payment

52.0%

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At a glance

What it does
Computes the monthly EMI and total interest for any loan using the standard reducing-balance formula.
Formula
EMI = [P × r × (1+r)^n] ÷ [(1+r)^n − 1]
Typical output
A ₹50L loan at 8.5% over 20 years has an EMI of ~₹43,391 and total interest of ~₹54L.
Best used for
Comparing loan offers on EMI and lifetime cost before signing up.

How It Works

This is the drill-down layer. The flagship flow leads with a recommendation, and this page lets you inspect the underlying model.

  • EMI = [P × r × (1 + r)^n] / [(1 + r)^n − 1], where P is principal, r is the monthly rate, n is the number of months.
  • Total interest = EMI × n − P.
  • Year-by-year schedule aggregates monthly interest and principal into annual rows.

Assumptions

The recommendation stays blunt, but the assumptions remain visible.

  • Standard reducing-balance loan with a fixed rate for the full tenure.
  • Processing fee, GST on interest, and insurance premiums are excluded.
  • Prepayments and floating-rate resets are not modelled here.

FAQ

The follow-up questions people usually ask after the main recommendation is already clear.

Why is my first EMI mostly interest?

In a reducing-balance loan, interest is charged on the outstanding balance. Early in the tenure, the balance is highest, so the interest portion of each EMI is at its peak.

How much does rate matter for total interest?

On a 20-year loan, every 25 bps rate change swings lifetime interest by tens of thousands to lakhs. Small differences compound enormously over long tenures.

Is a longer tenure really more expensive?

Yes — meaningfully. A 30-year loan has a lower EMI than a 20-year loan but often pays 60-80% more in total interest over its lifetime.

Calculations and decision frameworks, not personalised financial advice. The numbers on this page are based on the inputs you supplied and the regulatory rules in effect when this page was last reviewed. They are not a recommendation to buy, sell, hold, port, or surrender any specific financial product. Consult a SEBI-registered investment advisor, a qualified tax professional, or a licensed insurance broker before acting on a financial decision involving your money.

Artha Engine is an educational decision-support website. We do not offer loans, sell insurance, distribute mutual funds, provide regulated investment advice, collect loan applications, or receive commissions from banks, insurers, AMCs, brokers, or other financial providers. References to RBI, SEBI, IRDAI, Income Tax Department, or other authorities are source citations only. Artha Engine is not affiliated with, endorsed by, or sponsored by any government authority, regulator, bank, insurer, AMC, or broker. Artha Engine does not charge users fees for using calculators, comparison tools, articles, or financial health scoring. Mailing address: India.

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