A home loan of ₹1.5 crore at 9% a year for 15 years has an EMI of ₹1,52,140. Over the whole loan you pay ₹2,73,85,198, of which ₹1,23,85,198 is interest. That is 83 paise of interest for every rupee you borrow.
In the first year you pay ₹18,25,680 in EMIs. ₹13,29,879 of that is interest and only ₹4,95,801 repays the loan, so 73% of your first year’s EMIs goes to interest. After year 1 you still have ₹1,45,04,199 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 ₹1,90,014 but the interest would fall to ₹78,01,639, which is ₹45,83,558 less.
A rate half a point lower, 8.5%, would make the EMI ₹1,47,711, which is ₹4,429 less each month. A rate half a point higher, 9.5%, would make it ₹1,56,634.
If you pay ₹15,200 extra every month on top of the EMI, the loan is cleared 2 years 6 months sooner and you save ₹24,00,395 in interest.
Change these numbers in the EMI calculator
Illustration only, not investment, tax or legal advice.
The numbers behind it
- Loan amount
- ₹1,50,00,000
- Interest rate (per year)
- 9%
- Tenure
- 15 years (180 months)
- EMI
- ₹1,52,140
- Total interest
- ₹1,23,85,198
- Total paid
- ₹2,73,85,198
| Year | EMIs paid | Interest | Principal repaid | Balance left at year end |
|---|---|---|---|---|
| 1 | ₹18,25,680 | ₹13,29,879 | ₹4,95,801 | ₹1,45,04,199 |
| 2 | ₹18,25,680 | ₹12,83,370 | ₹5,42,310 | ₹1,39,61,889 |
| 3 | ₹18,25,680 | ₹12,32,497 | ₹5,93,183 | ₹1,33,68,707 |
| 4 | ₹18,25,680 | ₹11,76,853 | ₹6,48,827 | ₹1,27,19,880 |
| 5 | ₹18,25,680 | ₹11,15,988 | ₹7,09,692 | ₹1,20,10,188 |
| 6 | ₹18,25,680 | ₹10,49,414 | ₹7,76,266 | ₹1,12,33,923 |
| 7 | ₹18,25,680 | ₹9,76,595 | ₹8,49,085 | ₹1,03,84,838 |
| 8 | ₹18,25,680 | ₹8,96,945 | ₹9,28,735 | ₹94,56,103 |
| 9 | ₹18,25,680 | ₹8,09,824 | ₹10,15,856 | ₹84,40,247 |
| 10 | ₹18,25,680 | ₹7,14,529 | ₹11,11,151 | ₹73,29,096 |
| 11 | ₹18,25,680 | ₹6,10,296 | ₹12,15,384 | ₹61,13,712 |
| 12 | ₹18,25,680 | ₹4,96,284 | ₹13,29,396 | ₹47,84,317 |
| 13 | ₹18,25,680 | ₹3,71,578 | ₹14,54,102 | ₹33,30,214 |
| 14 | ₹18,25,680 | ₹2,35,173 | ₹15,90,507 | ₹17,39,707 |
| 15 | ₹18,25,680 | ₹85,972 | ₹17,39,707 | ₹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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