The instalment is the easy number and every calculator gives you it. The one worth looking at is the total interest, and the schedule that shows where it goes.
Over 20 years you repay ₹54,13,879 in interest, which is more than the ₹50.00 L you borrowed.
Optional. Leave at zero to see the loan as scheduled.
| Year | Principal | Interest | Closing | |
|---|---|---|---|---|
| 1 | ₹99,511 | ₹4.21 L | ₹49.00 L | |
| 2 | ₹1.08 L | ₹4.12 L | ₹47.92 L | |
| 3 | ₹1.18 L | ₹4.03 L | ₹46.74 L | |
| 4 | ₹1.28 L | ₹3.92 L | ₹45.46 L | |
| 5 | ₹1.40 L | ₹3.81 L | ₹44.06 L | |
| 6 | ₹1.52 L | ₹3.69 L | ₹42.54 L | |
| 7 | ₹1.65 L | ₹3.55 L | ₹40.89 L | |
| 8 | ₹1.80 L | ₹3.41 L | ₹39.09 L | |
| 9 | ₹1.96 L | ₹3.25 L | ₹37.13 L | |
| 10 | ₹2.13 L | ₹3.07 L | ₹35.00 L | |
| 11 | ₹2.32 L | ₹2.89 L | ₹32.68 L | |
| 12 | ₹2.53 L | ₹2.68 L | ₹30.15 L | |
| 13 | ₹2.75 L | ₹2.46 L | ₹27.40 L | |
| 14 | ₹2.99 L | ₹2.21 L | ₹24.41 L | |
| 15 | ₹3.26 L | ₹1.95 L | ₹21.15 L | |
| 16 | ₹3.55 L | ₹1.66 L | ₹17.60 L | |
| 17 | ₹3.86 L | ₹1.35 L | ₹13.75 L | |
| 18 | ₹4.20 L | ₹1.01 L | ₹9.55 L | |
| 19 | ₹4.57 L | ₹63,604 | ₹4.97 L | |
| 20 | ₹4.97 L | ₹23,202 | ₹0 |
Reducing balance, computed month by month. Interest accrues on the balance outstanding at the start of each month, the instalment pays that interest first and whatever is left reduces the principal.
The final instalment is trimmed to whatever is actually left, so the balance lands on zero rather than a few rupees either side of it.
A prepayment is applied at the end of the year you name. Shortening the tenure keeps the instalment and pulls the end date in; lowering the instalment keeps the end date. The first saves more, because the same payment keeps working against a smaller balance for the rest of the term.
Your lender’s own schedule may differ by a few rupees. Day-count conventions, the disbursal date and the broken first period all vary between lenders, and none of them is visible from outside. Use this to understand the shape, and your statement for the exact figures.
It assumes a fixed rate for the whole term. Most Indian home loans are floating, so the instalment or the tenure will move with the benchmark, usually more than once.
It ignores processing fees, insurance bundled with the loan, and any tax deduction you may claim on the interest or the principal.
The instalment is the fixed monthly payment that clears the principal and all the interest over the term. It is P × i × (1+i)^n ÷ ((1+i)^n − 1), where P is the loan, i is the monthly rate (the annual rate divided by twelve hundred) and n is the number of months. On ₹50 lakh at 8.5% for 20 years that is ₹43,391 a month.
Because interest is charged on what you still owe, and at the start you still owe almost all of it. In year one of a ₹50 lakh loan at 8.5%, roughly ₹4.2 lakh of the ₹5.2 lakh you pay is interest. That ratio inverts slowly and only crosses over around the two-thirds mark of the term. It is not a fee and nothing is being taken from you; it is simply what a large outstanding balance costs.
Both are offered by most Indian lenders and you have to ask for the one you want. Reducing the tenure saves substantially more interest, because your unchanged instalment goes on working against a smaller balance. Reducing the instalment frees up monthly cash flow instead. Set the toggle above to each in turn and the difference is usually several lakh.
Late in the term, and it is worth understanding why. A prepayment saves you the interest that would have accrued on that money for the rest of the loan, so its value falls as the remaining term shortens. In the last few years there is very little interest left to save. The comparison against investing the same money instead has its own page, because it depends on your tax position as well as the rates.
On the defaults above, more than you borrowed. A ₹50 lakh loan at 8.5% over 20 years repays about ₹54 lakh in interest on top of the principal. That figure is the single most useful thing this page can tell you, and it is why it is printed at the same size as the instalment rather than tucked underneath it.
Tenure, usually, and by a wide margin. Cutting a 20-year loan to 15 at the same rate saves far more interest than shaving half a percentage point off a 20-year one, because the interest you avoid is the interest that would have accrued in the years you removed. Change each input above and watch the interest total rather than the instalment.
At 8.5% a year it is ₹43,391 a month, and over the full term you repay about ₹54 lakh in interest on top of the ₹50 lakh borrowed. Change the rate above to see how sensitive that is: even half a percentage point moves the interest total by lakhs.
It depends on the loan rate, your tax position and what you would otherwise earn, and the honest answer needs both sides modelled after tax. A prepayment is a guaranteed saving at your loan rate; an investment is not guaranteed at any rate. A dedicated calculator for this comparison is in build.
Reducing the tenure saves more interest, often several lakh more on a large loan, because the unchanged instalment keeps working against a smaller balance. Reducing the EMI helps monthly cash flow instead. Lenders default to one or the other, so state which you want in writing.
Day-count conventions, the disbursal date and the treatment of the broken first period vary between lenders and are not visible from outside. Differences of a few rupees a month are normal. Anything larger is worth asking your lender about.
Yes, and most Indian home loans are floating. When the benchmark moves, lenders usually adjust the tenure rather than the instalment, so a rate rise quietly extends your loan instead of raising your payment. This page assumes a fixed rate throughout.
Under the old regime, yes, subject to the statutory limit for a self-occupied property. The new regime does not allow it for a self-occupied property, which is one of the larger items in the old-versus-new comparison. This calculator computes the loan before any tax relief.
No. Zenith distributes investment and insurance products and does not arrange credit. This calculator is here because a loan is usually the largest item on the other side of a household's balance sheet, and planning investments without it is planning with half the picture.
The shortest whose instalment you can service comfortably in a bad year rather than a good one. A longer tenure lowers the payment and raises the total cost considerably, and the schedule above shows exactly by how much.
Talk to the desk
Most planning conversations look only at what you own. What you owe, at what rate and for how long, changes what the investments on the other side should be doing. If you are carrying a home loan and investing at the same time, that is worth an hour.
Zenith Wealth distributes investment and insurance products and does not arrange loans. This page is arithmetic on the terms you entered. Your lender's own schedule is the authoritative one.
