Loans & EMI
Loan tenure vs total interest
Extending tenure typically lowers the monthly EMI but raises total interest because the loan stays outstanding for longer.
Compare two outputs
Do not compare only the EMI. Compare total repayment and total interest at the same principal and rate across two tenures.
Affordability has two dimensions
A short tenure can increase monthly pressure; a long tenure can increase the overall borrowing cost. Choose after considering income stability, emergency savings and lender conditions.
Floating-rate loans
When a floating rate changes, a lender may revise EMI, tenure or both. A standard calculator cannot predict future rate revisions.
How to check the result yourself
Use the loan amount as P, divide the annual rate by 1,200 to get the monthly rate r, and multiply years by 12 for n. For a ₹10,00,000 loan at 8.5% for 20 years, the reducing-balance formula gives an EMI of about ₹8,678. Compare both the EMI and total interest when you change tenure.
This guide is for general education. Rules, lender terms, bank terms and individual circumstances can change the result.
Use the relevant calculatorFrequently asked questions
Does this include lender charges?
No. The calculator illustrates the reducing-balance EMI formula; verify fees, insurance, rate changes and lender terms separately.
What should I compare before choosing a tenure?
Compare the EMI, total interest and total repayment at the same loan amount and rate.