Before you take a loan, know the real cost.EMI calculator: your monthly EMI, total interest and year-by-year split.

How to use the EMI calculator

1. Enter the loan amount you plan to borrow.
2. Enter the yearly interest rate the lender quotes.
3. Choose the tenure in years. Then see your EMI, total interest, total amount paid and the year-by-year split.

How to read your result

Monthly EMI is what you pay every month. Total amount paid is the EMI multiplied by the number of months, and total interest is that minus the loan amount. The year-by-year split shows how much of each year’s payments goes to interest and how much repays the loan.

For example, a ₹10 lakh loan at 9% for 20 years has an EMI of about ₹8,997. Over 20 years you pay about ₹21.59 lakh, so the interest is about ₹11.59 lakh, more than the loan itself. In the first year, about ₹89,240 of your payments goes to interest and only about ₹18,727 to the loan.

A shorter tenure means a bigger EMI but much less interest. If your rate is floating, the EMI or tenure can change when rates move. And if your family would have to repay the loan without you, a term insurance cover that matches your loans protects them. The term cover calculator helps you size it.

How the EMI calculator works

It uses the standard formula for a loan repaid in equal monthly instalments. P is the loan amount, r is the yearly rate divided by 12 (9% a year is 0.0075 a month), n is the number of months, and E is the EMI. Each month, interest is charged on the loan still left, and the rest of the EMI repays the principal.

E = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)