⭐ How to Use This EMI Calculator (Master Prepayments & Save More)
This EMI calculator helps you understand your EMI, tenure, total interest — and most importantly, how much money you can save using part-payments. Follow these simple steps to get the maximum benefit.
1️⃣ Enter Your Loan Details
Start by entering:
- Loan Amount (Principal)
- Annual Interest Rate (%)
- Tenure (Years)
2️⃣ Choose the Prepayment Mode
This is the biggest USP of this calculator — flexibility in how each part payment affects the loan.
- Reduce Tenure (EMI stays same) — Best for maximum interest savings. Prepayments shorten your loan duration dramatically.
- Reduce EMI (Tenure stays same) — Best for reducing monthly EMI and improving cash flow.
🔥 Unique Advantage: You can set a different mode for each part-payment. Most calculators apply only one rule — your tool is fully flexible.
3️⃣ Add Part-Payments (Your Most Powerful Tool)
Enter the:
- Month number (e.g., 12)
- Part-payment amount (e.g., 50,000)
Each time you add a prepayment, the calculator instantly updates:
- New EMI or new tenure (based on mode)
- Total interest saved
- Updated outstanding balance
- Month-by-month repayment schedule
4️⃣ Check Your Updated EMI Dashboard
The dashboard shows:
- Initial EMI (before prepayment)
- New Tenure after prepayment
- Total Interest Paid
- Interest Saved (your biggest gain)
- Total Payment
5️⃣ Explore the Amortization Schedule
The table shows:
- EMI breakup (principal + interest)
- Any part payment applied
- Updated outstanding after each month
6️⃣ Download Full Report (PDF / Excel)
With one click, export:
- Professional PDF report — perfect for sharing with CA or financial planner
- Excel file — for analysis, comparison or planning
🔥 Why This Calculator Is Better Than Others
- Shows actual interest saved after prepayments
- Allows multiple part-payments
- Allows different mode per part payment
- Recalculates EMI/tenure using real bank logic
- Exports clean PDF & Excel reports
💡 Pro Tip: For maximum savings, prepay early and choose Reduce Tenure.
Floating / Variable Rate Planning
If your loan has a floating rate, test both directions to stay prepared:
- Optimistic case: Rate falls by 1–3%. EMI may drop (or you can keep EMI same and finish sooner).
- Pessimistic case: Rate rises by 1–3%. Check if your cash flow can still handle the EMI comfortably.
Try a few “what-if” runs in the calculator to decide a safe EMI and sensible tenure for your situation.
FAQs
Does EMI change every month?
For fixed-rate loans, the EMI amount stays constant, but the interest/principal split shifts over time. For floating-rate loans, the lender may change EMI or tenure when rates move.
Is it better to prepay early or late?
Earlier prepayments save more interest because they reduce the outstanding when interest is the largest share of EMI.
Which is better: reduce EMI or reduce tenure?
Reducing tenure usually cuts total interest more. Reducing EMI improves monthly cash flow—pick what suits your goals.
What fees should I check before prepaying?
Look for prepayment/foreclosure charges, minimum part-payment amounts, and how quickly the lender updates your schedule.
Glossary
- Principal: Original loan amount borrowed.
- Interest: Cost of borrowing, charged on the outstanding balance.
- Tenure: Total time to repay the loan, in months/years.
- Prepayment / Part-payment: Extra payments made to reduce the outstanding sooner.
- Amortization: Gradual repayment of principal over time through EMIs.
What is EMI?
EMI (Equated Monthly Instalment) is the fixed amount you pay every month to repay your loan. Every EMI includes two parts — Principal and Interest. Most banks calculate EMI using the reducing balance method, where interest is charged only on the remaining loan amount. This helps borrowers plan their monthly budget easily.
Types of Interest Rates
Fixed Interest Rate
This rate remains constant throughout the loan tenure. Your EMI never changes, making it a stable and predictable option for loans like personal loans and car loans.
Floating / Variable Interest Rate
Floating rates change based on market conditions and RBI repo rate. Your EMI may increase or decrease. This is common in home loans.
Reducing Balance Interest Rate
Interest is calculated on the outstanding principal each month. As the principal decreases, interest also reduces. This method is more cost-effective and widely used in home loans.
Flat Interest Rate
Interest is charged on the full loan amount for the entire tenure, even though the principal reduces over time. This increases the total interest cost and is common in small loans.
Home Loan EMI
Home loan EMIs are typically long-term and depend on loan amount, interest rate, and tenure. Banks mostly use the floating interest rate system for home loans. Calculating your home loan EMI helps you estimate affordability and plan repayment better.
Car Loan EMI
Car loans usually come with fixed interest rates. This keeps your EMI the same every month, making it easier to manage vehicle purchase planning.
Personal Loan EMI
Personal loans come with higher interest rates compared to home and car loans. EMI depends on credit score, income, and loan amount. The reducing balance method is normally used to calculate personal loan EMIs.
Why EMI Calculation is Important?
- Helps plan monthly finances
- Allows comparison of different loan offers
- Shows total interest payable
- Helps choose the right tenure
- Reduces chances of financial stress