A home loan of ₹1 crore at 9% a year for 15 years has an EMI of ₹1,01,427. Over the whole loan you pay ₹1,82,56,799, of which ₹82,56,799 is interest. That is 83 paise of interest for every rupee you borrow.
In the first year you pay ₹12,17,120 in EMIs. ₹8,86,586 of that is interest and only ₹3,30,534 repays the loan, so 73% of your first year’s EMIs goes to interest. After year 1 you still have ₹96,69,466 left to repay.
The EMI stays the same, but its mix changes every month. Principal first becomes larger than interest in year 8 of 15.
If you took the same loan for 10 years instead, the EMI would rise to ₹1,26,676 but the interest would fall to ₹52,01,093, which is ₹30,55,706 less.
A rate half a point lower, 8.5%, would make the EMI ₹98,474, which is ₹2,953 less each month. A rate half a point higher, 9.5%, would make it ₹1,04,422.
If you pay ₹10,100 extra every month on top of the EMI, the loan is cleared 2 years 6 months sooner and you save ₹15,96,076 in interest.
Change these numbers in the EMI calculator
Illustration only, not investment, tax or legal advice.
The numbers behind it
- Loan amount
- ₹1,00,00,000
- Interest rate (per year)
- 9%
- Tenure
- 15 years (180 months)
- EMI
- ₹1,01,427
- Total interest
- ₹82,56,799
- Total paid
- ₹1,82,56,799
| Year | EMIs paid | Interest | Principal repaid | Balance left at year end |
|---|---|---|---|---|
| 1 | ₹12,17,120 | ₹8,86,586 | ₹3,30,534 | ₹96,69,466 |
| 2 | ₹12,17,120 | ₹8,55,580 | ₹3,61,540 | ₹93,07,926 |
| 3 | ₹12,17,120 | ₹8,21,665 | ₹3,95,455 | ₹89,12,471 |
| 4 | ₹12,17,120 | ₹7,84,568 | ₹4,32,551 | ₹84,79,920 |
| 5 | ₹12,17,120 | ₹7,43,992 | ₹4,73,128 | ₹80,06,792 |
| 6 | ₹12,17,120 | ₹6,99,610 | ₹5,17,510 | ₹74,89,282 |
| 7 | ₹12,17,120 | ₹6,51,063 | ₹5,66,056 | ₹69,23,225 |
| 8 | ₹12,17,120 | ₹5,97,964 | ₹6,19,156 | ₹63,04,069 |
| 9 | ₹12,17,120 | ₹5,39,882 | ₹6,77,238 | ₹56,26,831 |
| 10 | ₹12,17,120 | ₹4,76,353 | ₹7,40,767 | ₹48,86,064 |
| 11 | ₹12,17,120 | ₹4,06,864 | ₹8,10,256 | ₹40,75,808 |
| 12 | ₹12,17,120 | ₹3,30,856 | ₹8,86,264 | ₹31,89,544 |
| 13 | ₹12,17,120 | ₹2,47,718 | ₹9,69,401 | ₹22,20,143 |
| 14 | ₹12,17,120 | ₹1,56,782 | ₹10,60,338 | ₹11,59,805 |
| 15 | ₹12,17,120 | ₹57,315 | ₹11,59,805 | ₹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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