How is EMI calculated?

EMI = P × r × (1+r)^n / ((1+r)^n − 1), where P is the loan amount, r is the monthly interest rate (annual rate divided by 12 and 100) and n is the number of monthly instalments.

Reduce EMI or reduce tenure — which is better after a prepayment?

Reducing tenure (keeping EMI the same) saves more total interest since the loan closes sooner. Reducing EMI (keeping tenure the same) lowers monthly outgo instead, which helps with monthly cash flow.

Can my bank charge a penalty for prepaying my loan?

No. RBI rules effective 1 January 2026 bar banks and NBFCs from charging any prepayment or foreclosure penalty on floating-rate loans taken by individuals for non-business purposes, regardless of the source of funds or lock-in period.

Should I prepay my loan or invest the extra money instead?

Compare your loan's interest rate to the realistic post-tax return you expect from investing. Prepaying is a guaranteed, risk-free return equal to your loan's interest rate; investing may do better only if your expected post-tax return is reliably higher.

EMI Calculator — With Prepayment Simulator

Calculate your home, car or personal loan EMI, then see exactly how much a prepayment saves you. Free, instant, no sign-up.

Loan Details

Loan Amount (₹) *

= Forty Lakh Rupees

Interest Rate (% p.a.) *

Tenure (Years) *

Monthly EMI: ₹34,713

Prepayment / Part-Payment Simulator

See how paying extra — every month, once a year, or as a one-time payment after a few years — cuts your interest and tenure.

Yearly Amortization Schedule

Year	Principal Paid	Interest Paid	Balance
1	₹79,609	₹3,36,946	₹39,20,391
2	₹86,646	₹3,29,909	₹38,33,745
3	₹94,305	₹3,22,251	₹37,39,440
4	₹1,02,640	₹3,13,915	₹36,36,800
5	₹1,11,713	₹3,04,842	₹35,25,087
6	₹1,21,587	₹2,94,968	₹34,03,500
7	₹1,32,334	₹2,84,221	₹32,71,166
8	₹1,44,031	₹2,72,524	₹31,27,134
9	₹1,56,763	₹2,59,793	₹29,70,372
10	₹1,70,619	₹2,45,936	₹27,99,753
11	₹1,85,700	₹2,30,855	₹26,14,053
12	₹2,02,114	₹2,14,441	₹24,11,939
13	₹2,19,979	₹1,96,576	₹21,91,959
14	₹2,39,424	₹1,77,132	₹19,52,536
15	₹2,60,586	₹1,55,969	₹16,91,949
16	₹2,83,620	₹1,32,935	₹14,08,329
17	₹3,08,689	₹1,07,866	₹10,99,640
18	₹3,35,975	₹80,581	₹7,63,665
19	₹3,65,672	₹50,883	₹3,97,994
20	₹3,97,994	₹18,561	₹0

Full month-by-month schedule is included in the downloadable PDF.

Monthly EMI

₹34,713

₹40,00,000 at 8.5% for 20 years

Principal 48%Interest 52%

Principal Amount

₹40,00,000

Total Interest Payable

₹43,31,103

Total Payment

₹83,31,103

Since 1 Jan 2026, RBI bars lenders from charging prepayment or foreclosure penalties on floating-rate loans for individuals — prepaying costs you nothing extra.

How to Use This EMI Calculator

Enter your loan amount, interest rate and tenure to get your exact monthly EMI, split between principal and interest, along with the total interest you'll pay over the life of the loan. Most banks quote EMI calculators in isolation — this one goes further with a built-in prepayment simulator, so you can see the real rupee impact of paying extra, whether that's a recurring monthly top-up, a once-a-year lump sum from a bonus or Diwali payout, or a single one-time payment after you've already been paying EMIs for a few years.

After any prepayment, your lender lets you choose between two paths: keep your EMI the same and finish the loan sooner (Option A — Reduce Tenure), or keep your tenure the same and pay a smaller EMI each month (Option B — Reduce EMI). Reducing tenure always saves more total interest; reducing EMI frees up monthly cash flow instead. This calculator computes both so you can decide with real numbers, not guesswork. Everything runs in your browser — your loan details are never uploaded or stored.