Loan amount, interest rate, tenure. Get the monthly EMI, total interest and a year by year breakdown. Home, car, personal, whatever.
₹20,758
| YEAR | PRINCIPAL PAID | INTEREST PAID | BALANCE LEFT |
|---|---|---|---|
| 1 | ₹1,65,830 | ₹83,270 | ₹8,34,170 |
| 2 | ₹1,81,386 | ₹67,714 | ₹6,52,784 |
| 3 | ₹1,98,401 | ₹50,699 | ₹4,54,383 |
| 4 | ₹2,17,013 | ₹32,088 | ₹2,37,370 |
| 5 | ₹2,37,370 | ₹11,730 | ₹0 |
Reducing-balance method, the one banks use for home, car and personal loans. Processing fees and insurance aren't included.
QUESTIONS NOBODY ASKED · ANSWERED ANYWAY
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r the monthly interest rate (annual rate ÷ 12 ÷ 100) and n the number of months.
Interest is charged on the balance still owed. At the start the balance is biggest, so most of each EMI goes to interest. Open the year by year table to watch it flip.
No. It is the pure reducing-balance EMI your bank quotes. Add fees on top when comparing loans.
A lot. Any extra payment cuts the balance that interest is charged on, which shortens the loan or lowers the EMI. Ask your bank which one they apply.