₹10,00,000
₹50K ₹5Cr
10%
5% 25%
10 Years
1 Yr 30 Yrs

Repayment Summary

Monthly EMI: ₹13,215
Principal Amount: ₹10,00,000
Total Interest: ₹5,85,809
Total Payable: ₹15,85,809

How EMI is Calculated

EMI (Equated Monthly Installment) consists of a principal portion and an interest portion. In the initial years, the interest component is higher, while the principal component is lower. This gradually reverses as you progress through the loan tenure.

The mathematical formula to calculate EMI is:

EMI = P x R x (1+R)^N / [(1+R)^N-1]
  • P: Principal Loan Amount
  • R: Monthly Interest Rate
  • N: Loan Tenure in Months

Tips for Managing Your EMI

  • Borrow within limits: Ensure your total EMIs do not exceed 40-50% of your monthly income.
  • Choose right tenure: A longer tenure means lower EMI but higher total interest paid. Balance affordability with interest cost.
  • Pre-payments: Use annual bonuses or extra income to make partial pre-payments to reduce the principal balance and save on interest.
  • Never miss a payment: Set up auto-debit facilities to avoid late payment penalties and protect your credit score.