How this calculator works
Your EMI (Equated Monthly Instalment) is calculated so that a fixed payment, made every month for the full loan tenure, exactly pays off both principal and interest:
EMI = [P × r × (1 + r)n] / [(1 + r)n − 1]
Where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12), and n is the tenure in months. Early EMIs are mostly interest; later EMIs are mostly principal — the split shifts gradually over the loan term.
FAQs
Does prepaying reduce my EMI or my tenure?
Most lenders let you choose — reducing the tenure (keeping EMI the same) usually saves more total interest than reducing the EMI amount, since the loan closes out sooner.
What's a safe EMI-to-income ratio?
Keep total EMIs (all loans combined) under 30-35% of take-home salary — see how much house you can actually afford for the full framework.