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Calculate the monthly EMI for a loan and its interest cost.
TaxNext's EMI calculator works out the monthly instalment, total interest and total repayment for a loan on a standard reducing-balance basis — the method Indian banks and NBFCs use for home loans, car loans and personal loans. It's useful for anyone comparing loan offers, deciding on a tenure, or checking whether a lender's quoted EMI matches the stated rate.
Month 1's instalment is ₹21,250 interest and ₹4,785 principal; by the final month that flips to ₹182 interest and ₹25,665 principal — the interest share shrinks every month as the outstanding balance falls.
Over a 20-year tenure the total interest paid can exceed the principal itself — this is normal for a reducing-balance loan and is why prepaying early, when interest makes up most of each instalment, saves the most.
Month 1's instalment is ₹6,333 interest and ₹10,468 principal; by the final month that flips to ₹132 interest and ₹16,701 principal — the interest share shrinks every month as the outstanding balance falls.
A shorter tenure means a higher monthly EMI but far less total interest than the home loan above, even at a similar rate — tenure length matters more than rate for total cost on smaller loans.
Month 1's instalment is ₹0 interest and ₹4,167 principal; by the final month that flips to ₹0 interest and ₹4,163 principal — the interest share shrinks every month as the outstanding balance falls.
At 0% interest the EMI is just the principal divided evenly across the tenure — the formula falls back to simple division rather than the compounding formula, since there's no interest to compound.
Standard reducing-balance EMI arithmetic for a fixed-rate loan. It does not cover floating-rate resets, processing fees, prepayment penalties, or step-up/step-down EMI structures some lenders offer — those change the actual repayment schedule a lender would quote.
Figures are illustrative estimates, not financial advice. Actual EMI offered by a lender may differ slightly due to rounding conventions or fee inclusion.
Reviewed by VNAV & Associates, Chartered Accountants. Last updated: August 2026.
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