How it works
The EMI uses the standard reducing-balance formula, with a monthly rate equal to the annual rate divided by twelve, as lenders in India usually quote it:
EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1)
where P is the amount owed when repayments begin, r is the monthly rate and n is the number of monthly instalments.
The moratorium is simple interest on the amount borrowed for each month before repayments begin. If interest is added to the loan, your EMIs are calculated on the larger amount. If you pay it each month, it counts towards your total interest. Some lenders compound interest during the moratorium; your sanction letter is the authority.
Extra payments go straight to reducing the principal. The EMI stays the same and the loan ends sooner. Total paid always equals the amount borrowed plus all interest, which we check in our tests.
What this cannot tell you
- It assumes the rate stays fixed. Floating rates change, and lenders may adjust your EMI or tenure.
- It ignores processing fees, bundled insurance, prepayment charges and any tax treatment of loan interest.
- It cannot tell you whether to prepay or invest instead; that depends on your rate, your security and your other plans.
Every result comes from the formulas above, run in your browser. There is no AI and no server involved, and the same inputs always give the same answer. Figures are educational estimates, not individualised financial advice.