Question 1

How is EMI calculated?

Accepted Answer

EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1), where P is the principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of months. This calculator uses that formula and then walks the loan month by month on a reducing balance, so the schedule matches what your bank posts.

Question 2

What is a reducing balance loan?

Accepted Answer

Interest each month is charged only on what you still owe, not on the original amount. As the balance falls, the interest portion of every EMI falls with it and the principal portion grows. Flat-rate calculators ignore this and overstate the interest badly on long loans.

Question 3

Why is most of my early EMI going to interest?

Accepted Answer

Because interest is charged on the outstanding balance, which is at its highest at the start. On a 20-year home loan the first instalment can be more than 80% interest. The schedule below shows the crossover month where principal finally overtakes it.

Question 4

Does prepaying a loan actually help?

Accepted Answer

Yes, and more than most people expect. A prepayment reduces the balance that every future month's interest is calculated on, so it saves far more than the amount you pay in. The earlier in the tenure you do it, the larger the saving.

Question 5

Is my loan data sent anywhere?

Accepted Answer

No. This calculator runs entirely in your browser — nothing you type is sent to a server, stored, or logged.

Month	Interest	Principal	Balance
1	₹18,229	₹3,864	₹24,96,136
2	₹18,201	₹3,892	₹24,92,244
3	₹18,173	₹3,920	₹24,88,324
4	₹18,144	₹3,949	₹24,84,375
5	₹18,115	₹3,978	₹24,80,397
6	₹18,086	₹4,007	₹24,76,390
7	₹18,057	₹4,036	₹24,72,354
8	₹18,028	₹4,065	₹24,68,289
9	₹17,998	₹4,095	₹24,64,194
10	₹17,968	₹4,125	₹24,60,069
11	₹17,938	₹4,155	₹24,55,914
12	₹17,908	₹4,185	₹24,51,729

EMI calculator with the full repayment schedule

Where each instalment goes

Repayment schedule

A calculator tells you the plan. MyX tells you where you are.

Common questions