How it works
Calculates your fixed monthly EMI using the reducing-balance formula. The amortisation table shows how the interest-principal split changes each year. Optional prepayment and processing fee fields let you model the full cost of borrowing.
When to use this
Before taking any loan: home, car, or personal. Compare two offers side by side (even 0.5% rate difference saves lakhs), and use the prepayment field to see how a bonus payment shortens your tenure. For home loans, also check the Home Loan calculator for eligibility ratios and upfront cost estimates.
Frequently asked questions
Why does the interest-principal split change each month?
Banks use reducing-balance: as your principal decreases, the interest portion shrinks and the principal portion grows, even though the EMI stays the same.
Does prepayment actually save much?
Yes, especially early on. Even one extra payment in year one can cut total interest significantly because it reduces the principal on which all future interest accrues.
What happens if I miss an EMI?
Missed EMIs are reported to CIBIL and can lower your credit score. The bank charges a late fee and continues accruing interest. Contact your lender proactively if you anticipate difficulty.