EMI Calculator

A processing fee of 1% of the loan amount adds to your borrowing cost without reducing the principal. On a Rs 5,00,000 loan that is Rs 5,000 upfront, which can raise your effective rate by roughly 0.3-0.5% depending on tenure. Always compare all-in costs, not just the headline rate.

Reducing balance interest is calculated on the outstanding principal, which falls as you repay, so the interest burden declines each month. Flat rate interest is calculated on the full loan amount for the entire tenure, making it appear lower but actually costlier. Indian banks almost always use reducing balance.

A longer tenure lowers the EMI but sharply increases total interest. For a Rs 5,00,000 loan at 9%, a 3-year tenure costs roughly Rs 72,000 in interest while a 5-year tenure costs about Rs 1,22,751. Only stretch the tenure if your monthly cash flow truly demands it.

A balance transfer moves your outstanding loan to a lender offering a lower rate, cutting both EMI and total interest. Factor in the transfer fee (typically 0.5-1% of the outstanding) and break-even period before switching.

Most financial advisors recommend keeping your EMI below 30-40% of your monthly income. If your EMI exceeds this threshold, consider a longer tenure, a larger down payment, or a smaller loan amount to maintain financial stability.

Yes. Most lenders allow partial or full prepayment. Prepaying reduces the outstanding principal, which lowers the total interest cost. Check if your lender charges prepayment penalties before making extra payments.

With a floating rate, your EMI may change when the lender revises interest rates. Some lenders keep the EMI constant and adjust the tenure instead. This calculator uses a fixed rate assumption for estimation purposes.