Loan Payoff Calculator
See exactly how much time and interest you save by making extra monthly payments on your loan.
Month-by-Month Amortisation Table
| Month | Payment | Principal | Interest | Balance |
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Frequently asked questions
How is the EMI calculated?
EMI = P × r × (1+r)^n / ((1+r)^n - 1) where P is the principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the number of months. This is the standard reducing-balance EMI formula used by all Indian banks.
What happens when I pay extra each month?
The extra amount is applied entirely to the principal, reducing the outstanding balance faster. This creates a compounding effect — less principal means less interest accrues each month, which in turn reduces the total loan term.
Is it better to pay extra EMI or invest the money?
Compare your loan interest rate to the expected investment return. If your home loan is at 8.5% and you can earn 12% in equity mutual funds, investing may win. But debt repayment offers a guaranteed, risk-free return equal to the interest rate, plus psychological benefits.
Do Indian banks allow prepayment without penalty?
As per RBI guidelines, floating-rate loans from banks and NBFCs cannot charge prepayment penalties for individual borrowers. Fixed-rate loans may have a prepayment charge of 1–2%. Always check your loan agreement.
What is the difference between loan term in months vs years?
A 5-year loan = 60 months, 10-year = 120 months, 15-year = 180 months, 20-year = 240 months, 30-year = 360 months. Home loans in India typically run 15–30 years; personal loans 12–84 months; car loans 36–84 months.