A home loan of ₹1.5 crore at 8.75% a year for 30 years has an EMI of ₹1,18,005. Over the whole loan you pay ₹4,24,81,822, of which ₹2,74,81,822 is interest. That is 183 paise of interest for every rupee you borrow.
In the first year you pay ₹14,16,061 in EMIs. ₹13,08,244 of that is interest and only ₹1,07,817 repays the loan, so 92% of your first year’s EMIs goes to interest. After year 1 you still have ₹1,48,92,183 left to repay.
The EMI stays the same, but its mix changes every month. Principal first becomes larger than interest in year 23 of 30.
If you took the same loan for 25 years instead, the EMI would rise to ₹1,23,322 but the interest would fall to ₹2,19,96,464, which is ₹54,85,358 less.
A rate half a point lower, 8.25%, would make the EMI ₹1,12,690, which is ₹5,315 less each month. A rate half a point higher, 9.25%, would make it ₹1,23,401.
If you pay ₹11,800 extra every month on top of the EMI, the loan is cleared 8 years 9 months sooner and you save ₹94,45,776 in interest.
Change these numbers in the EMI calculator
Illustration only, not investment, tax or legal advice.
The numbers behind it
- Loan amount
- ₹1,50,00,000
- Interest rate (per year)
- 8.75%
- Tenure
- 30 years (360 months)
- EMI
- ₹1,18,005
- Total interest
- ₹2,74,81,822
- Total paid
- ₹4,24,81,822
| Year | EMIs paid | Interest | Principal repaid | Balance left at year end |
|---|---|---|---|---|
| 1 | ₹14,16,061 | ₹13,08,244 | ₹1,07,817 | ₹1,48,92,183 |
| 2 | ₹14,16,061 | ₹12,98,423 | ₹1,17,638 | ₹1,47,74,545 |
| 3 | ₹14,16,061 | ₹12,87,706 | ₹1,28,355 | ₹1,46,46,191 |
| 4 | ₹14,16,061 | ₹12,76,014 | ₹1,40,047 | ₹1,45,06,144 |
| 5 | ₹14,16,061 | ₹12,63,256 | ₹1,52,805 | ₹1,43,53,339 |
| 6 | ₹14,16,061 | ₹12,49,336 | ₹1,66,725 | ₹1,41,86,614 |
| 7 | ₹14,16,061 | ₹12,34,148 | ₹1,81,913 | ₹1,40,04,701 |
| 8 | ₹14,16,061 | ₹12,17,577 | ₹1,98,484 | ₹1,38,06,217 |
| 9 | ₹14,16,061 | ₹11,99,496 | ₹2,16,565 | ₹1,35,89,652 |
| 10 | ₹14,16,061 | ₹11,79,767 | ₹2,36,293 | ₹1,33,53,359 |
| 11 | ₹14,16,061 | ₹11,58,242 | ₹2,57,819 | ₹1,30,95,540 |
| 12 | ₹14,16,061 | ₹11,34,756 | ₹2,81,305 | ₹1,28,14,235 |
| 13 | ₹14,16,061 | ₹11,09,130 | ₹3,06,931 | ₹1,25,07,304 |
| 14 | ₹14,16,061 | ₹10,81,170 | ₹3,34,891 | ₹1,21,72,414 |
| 15 | ₹14,16,061 | ₹10,50,663 | ₹3,65,398 | ₹1,18,07,016 |
| 16 | ₹14,16,061 | ₹10,17,377 | ₹3,98,684 | ₹1,14,08,332 |
| 17 | ₹14,16,061 | ₹9,81,058 | ₹4,35,003 | ₹1,09,73,329 |
| 18 | ₹14,16,061 | ₹9,41,431 | ₹4,74,629 | ₹1,04,98,700 |
| 19 | ₹14,16,061 | ₹8,98,195 | ₹5,17,866 | ₹99,80,834 |
| 20 | ₹14,16,061 | ₹8,51,019 | ₹5,65,042 | ₹94,15,792 |
| 21 | ₹14,16,061 | ₹7,99,546 | ₹6,16,515 | ₹87,99,277 |
| 22 | ₹14,16,061 | ₹7,43,384 | ₹6,72,676 | ₹81,26,601 |
| 23 | ₹14,16,061 | ₹6,82,106 | ₹7,33,955 | ₹73,92,646 |
| 24 | ₹14,16,061 | ₹6,15,246 | ₹8,00,815 | ₹65,91,832 |
| 25 | ₹14,16,061 | ₹5,42,295 | ₹8,73,766 | ₹57,18,066 |
| 26 | ₹14,16,061 | ₹4,62,699 | ₹9,53,362 | ₹47,64,704 |
| 27 | ₹14,16,061 | ₹3,75,851 | ₹10,40,209 | ₹37,24,495 |
| 28 | ₹14,16,061 | ₹2,81,093 | ₹11,34,968 | ₹25,89,527 |
| 29 | ₹14,16,061 | ₹1,77,702 | ₹12,38,359 | ₹13,51,168 |
| 30 | ₹14,16,061 | ₹64,893 | ₹13,51,168 | ₹0 |
Sources and method
The standard reducing-balance loan formula: each month’s interest is charged on the balance still left, and the payment stays the same.
No outside data is used. The numbers you type in are the only inputs.
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