A home loan of ₹20 lakh at 9% a year for 15 years has an EMI of ₹20,285. Over the whole loan you pay ₹36,51,360, of which ₹16,51,360 is interest. That is 83 paise of interest for every rupee you borrow.
In the first year you pay ₹2,43,424 in EMIs. ₹1,77,317 of that is interest and only ₹66,107 repays the loan, so 73% of your first year’s EMIs goes to interest. After year 1 you still have ₹19,33,893 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 ₹25,335 but the interest would fall to ₹10,40,219, which is ₹6,11,141 less.
A rate half a point lower, 8.5%, would make the EMI ₹19,695, which is ₹591 less each month. A rate half a point higher, 9.5%, would make it ₹20,884.
If you pay ₹2,000 extra every month on top of the EMI, the loan is cleared 2 years 6 months sooner and you save ₹3,16,702 in interest.
Change these numbers in the EMI calculator
Illustration only, not investment, tax or legal advice.
The numbers behind it
- Loan amount
- ₹20,00,000
- Interest rate (per year)
- 9%
- Tenure
- 15 years (180 months)
- EMI
- ₹20,285
- Total interest
- ₹16,51,360
- Total paid
- ₹36,51,360
| Year | EMIs paid | Interest | Principal repaid | Balance left at year end |
|---|---|---|---|---|
| 1 | ₹2,43,424 | ₹1,77,317 | ₹66,107 | ₹19,33,893 |
| 2 | ₹2,43,424 | ₹1,71,116 | ₹72,308 | ₹18,61,585 |
| 3 | ₹2,43,424 | ₹1,64,333 | ₹79,091 | ₹17,82,494 |
| 4 | ₹2,43,424 | ₹1,56,914 | ₹86,510 | ₹16,95,984 |
| 5 | ₹2,43,424 | ₹1,48,798 | ₹94,626 | ₹16,01,358 |
| 6 | ₹2,43,424 | ₹1,39,922 | ₹1,03,502 | ₹14,97,856 |
| 7 | ₹2,43,424 | ₹1,30,213 | ₹1,13,211 | ₹13,84,645 |
| 8 | ₹2,43,424 | ₹1,19,593 | ₹1,23,831 | ₹12,60,814 |
| 9 | ₹2,43,424 | ₹1,07,976 | ₹1,35,448 | ₹11,25,366 |
| 10 | ₹2,43,424 | ₹95,271 | ₹1,48,153 | ₹9,77,213 |
| 11 | ₹2,43,424 | ₹81,373 | ₹1,62,051 | ₹8,15,162 |
| 12 | ₹2,43,424 | ₹66,171 | ₹1,77,253 | ₹6,37,909 |
| 13 | ₹2,43,424 | ₹49,544 | ₹1,93,880 | ₹4,44,029 |
| 14 | ₹2,43,424 | ₹31,356 | ₹2,12,068 | ₹2,31,961 |
| 15 | ₹2,43,424 | ₹11,463 | ₹2,31,961 | ₹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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