A home loan of ₹75 lakh at 9% a year for 15 years has an EMI of ₹76,070. Over the whole loan you pay ₹1,36,92,599, of which ₹61,92,599 is interest. That is 83 paise of interest for every rupee you borrow.
In the first year you pay ₹9,12,840 in EMIs. ₹6,64,940 of that is interest and only ₹2,47,900 repays the loan, so 73% of your first year’s EMIs goes to interest. After year 1 you still have ₹72,52,100 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 ₹95,007 but the interest would fall to ₹39,00,820, which is ₹22,91,779 less.
A rate half a point lower, 8.5%, would make the EMI ₹73,855, which is ₹2,215 less each month. A rate half a point higher, 9.5%, would make it ₹78,317.
If you pay ₹7,600 extra every month on top of the EMI, the loan is cleared 2 years 6 months sooner and you save ₹12,00,198 in interest.
Change these numbers in the EMI calculator
Illustration only, not investment, tax or legal advice.
The numbers behind it
- Loan amount
- ₹75,00,000
- Interest rate (per year)
- 9%
- Tenure
- 15 years (180 months)
- EMI
- ₹76,070
- Total interest
- ₹61,92,599
- Total paid
- ₹1,36,92,599
| Year | EMIs paid | Interest | Principal repaid | Balance left at year end |
|---|---|---|---|---|
| 1 | ₹9,12,840 | ₹6,64,940 | ₹2,47,900 | ₹72,52,100 |
| 2 | ₹9,12,840 | ₹6,41,685 | ₹2,71,155 | ₹69,80,945 |
| 3 | ₹9,12,840 | ₹6,16,249 | ₹2,96,591 | ₹66,84,353 |
| 4 | ₹9,12,840 | ₹5,88,426 | ₹3,24,414 | ₹63,59,940 |
| 5 | ₹9,12,840 | ₹5,57,994 | ₹3,54,846 | ₹60,05,094 |
| 6 | ₹9,12,840 | ₹5,24,707 | ₹3,88,133 | ₹56,16,961 |
| 7 | ₹9,12,840 | ₹4,88,298 | ₹4,24,542 | ₹51,92,419 |
| 8 | ₹9,12,840 | ₹4,48,473 | ₹4,64,367 | ₹47,28,052 |
| 9 | ₹9,12,840 | ₹4,04,912 | ₹5,07,928 | ₹42,20,124 |
| 10 | ₹9,12,840 | ₹3,57,265 | ₹5,55,575 | ₹36,64,548 |
| 11 | ₹9,12,840 | ₹3,05,148 | ₹6,07,692 | ₹30,56,856 |
| 12 | ₹9,12,840 | ₹2,48,142 | ₹6,64,698 | ₹23,92,158 |
| 13 | ₹9,12,840 | ₹1,85,789 | ₹7,27,051 | ₹16,65,107 |
| 14 | ₹9,12,840 | ₹1,17,586 | ₹7,95,253 | ₹8,69,854 |
| 15 | ₹9,12,840 | ₹42,986 | ₹8,69,854 | ₹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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