Calculate your monthly payments and see exactly how much interest you will pay to the bank.
Equated Monthly Installment (EMI) is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. EMIs are used to pay off both the principal amount and the interest of a loan over a set number of years.
When you first start paying your EMI, the vast majority of your monthly payment goes toward paying the interest to the bank, not paying down your actual loan amount. As the years go by, this ratio flips, and more of your money starts going toward the principal balance. This is known as an amortization schedule.
Banks often extend the duration of a loan (like pushing a 15-year mortgage to a 30-year mortgage) to make the monthly payment look smaller and more affordable. However, this calculator reveals the truth: extending the time of your loan massively increases the total interest you pay. In some long-term mortgages, borrowers end up paying more in interest than the original cost of the house itself.