HOME LOANS · WORLDWIDE
Model a mortgage-scale repayment over years, not months, and see exactly how advance versus arrears timing shifts your total interest.
A home loan EMI is the fixed monthly payment you make toward repaying money borrowed to buy, build, or renovate a property. Because home loans run for so many years, the interest portion dominates the early payments, and only later do you start paying down the principal faster.
Enter your loan amount, interest rate, and term, and compare the advance and arrears repayment schemes below.
Both schemes charge the same interest rate on the same loan. The only difference is when each installment falls due — and that timing changes how much interest accrues over the life of the loan.
Home loans are the largest and longest-running debt most people take on, often running 15 to 30 years. Even a small difference in interest rate or tenure compounds into a large amount over that time, so it's worth modelling a few scenarios before signing.
The first installment is deducted at disbursement, before any interest has accrued. Every later installment is then calculated on a slightly lower balance, so total interest paid over the loan is a little lower.
The first installment falls due one month after disbursement, after a full month of interest has already built up. This is the more common structure for most loans.
EMI = P × R × (1+R)ⁿ ÷ [(1+R)ⁿ − 1], where P is the loan amount, R is the monthly interest rate (annual rate ÷ 12 ÷ 100), and N is the number of monthly installments.
For a loan of 3,000,000 over 240 months (20 years) at 8.5% annual interest, the monthly EMI works out to about 26,035, with total interest of roughly 3,248,327 paid over the full term — more than the original loan amount itself, which is typical for long-tenure home loans.
Yes, in total interest terms. A longer tenure lowers your monthly EMI but increases the total interest paid over the life of the loan, since interest accrues on the outstanding balance for longer.
Most lenders allow partial or full prepayment, often with a review or a small fee for fixed-rate loans. Prepaying early in the loan term has a bigger impact on total interest than prepaying later, since more of the balance is still outstanding.
EMI stands for Equated Monthly Installment — a fixed payment made each month toward a loan, made up of a portion of the principal and a portion of interest. The size of each portion changes over time, but the total payment stays the same for the life of the loan.
In the advance scheme, your first installment is deducted at disbursement, before any interest has accrued, so total interest ends up slightly lower. In the arrears scheme (the more common structure), the first installment falls due one month after disbursement, after a full month of interest has already built up.
No. All calculations happen directly in your browser using JavaScript. Nothing you enter is saved, uploaded, or sent to any server.
Yes. The currency dropdown covers 173 countries, and the language dropdown covers 30 languages. The calculator also tries to detect your language and currency automatically from your browser settings when the page loads — you can always change either manually.
This calculator gives an accurate estimate based on the numbers you enter, but real loans often include processing fees, insurance, or other charges that aren't part of the base EMI formula. Confirm the exact terms with your lender before borrowing.