Are these calculators free?
Yes, completely free. No signups, no subscriptions, no hidden fees.
Do you store my financial data?
No. All calculations happen entirely within your own browser. Your data never leaves your device. We don't have a backend database.
How is EMI calculated?
EMI (Equated Monthly Installment) is calculated using the formula: EMI = P × r × (1 + r)^n / ((1 + r)^n - 1), where P is the principal loan amount, r is the monthly interest rate, and n is the number of monthly installments. This is the same reducing balance method used by all major Indian banks including SBI, HDFC, ICICI, and Axis Bank.
What is the reducing balance method?
Indian home loans use the reducing balance method (also called diminishing balance method). Under this, interest is calculated on the outstanding principal balance each month, not the original loan amount. As you make payments, your principal reduces, so does the interest portion of your EMI. This is different from the fixed interest method where interest is calculated on the full principal throughout the loan tenure.
What is the difference between tenure reduction and EMI reduction?
When you make a prepayment, you have two options: reduce your tenure (pay off earlier) or reduce your monthly EMI. Tenure reduction saves more interest overall because you're paying off the loan sooner. However, EMI reduction gives you immediate monthly cash flow relief. Our calculator shows both scenarios so you can compare the total interest saved under each option.
What are prepayment penalties?
Most Indian banks charge prepayment penalties for closing your loan early or making substantial prepayments. SBI typically allows prepayments above ₹1 lakh without penalty after 6 months. HDFC allows prepayments above ₹25,000 twice a year without charges. However, these policies vary and change frequently. Always check with your bank before making prepayments. Note: floating rate home loans usually have no prepayment penalty as per RBI guidelines.
What is an EMI step-up or step-down?
An EMI step-up is when you voluntarily increase your monthly payment over time, usually aligned with salary increases. This significantly reduces total interest. Conversely, an EMI step-down reduces your monthly burden but increases total interest paid. Our calculator lets you model future EMI changes to see exactly how salary increments can accelerate your loan payoff.
Does the calculator consider leap years?
Yes. Our amortization calculation uses actual calendar dates, accounting for leap years. This ensures precise interest calculations for each month, which is especially important for longer tenure loans where small daily differences compound over 20-30 years.
What happens if I miss an EMI payment?
Missing EMI payments can result in late fees, increased interest rates, and negatively impact your credit score. Our calculator assumes regular payments. For modeling scenarios with missed payments, you would need to add those as irregular prepayments (negative amounts) to see the impact on your loan schedule.
Can I calculate for different bank interest rates?
Yes. Our calculator allows you to input any interest rate, so you can model loans from SBI (currently ~8.40%-8.50%), HDFC (~8.45%-8.55%), ICICI (~8.60%-8.70%), Axis Bank (~8.60%-8.75%), or any other lender. Simply enter the rate your bank offers to get accurate calculations.
How accurate is this calculator?
Our calculator uses the exact mathematical formula that banks use for amortization schedules. The results should match your bank's official amortization table. However, some banks may use slightly different day-count conventions, so there may be marginal differences of a few hundred rupees over very long tenures.
How often should I make prepayments?
There's no strict rule, but common strategies include: annual prepayments (using Diwali bonus or annual savings), quarterly prepayments, or making one extra EMI payment per year (the "13th EMI" strategy). The more frequently you prepay, the more you save on interest because the principal reduces faster.
Is it better to invest or prepay my home loan?
This depends on your home loan interest rate versus the returns you can get from investments. If your home loan rate is higher than what you can earn from investments (after tax), prepayment is mathematically better. However, consider maintaining an emergency fund and tax benefits on home loan interest (under Section 24) before prepaying aggressively.