Question 1

How is EMI calculated?

Accepted Answer

EMI is calculated using the formula: P x R x (1+R)^N / [(1+R)^N-1], where P is Principal amount, R is monthly interest rate, and N is the number of months.

Question 2

Why is the total interest sometimes higher than the loan amount?

Accepted Answer

For long-term home loans (e.g., 20 or 30 years), the power of compound interest works against you. Because you are paying the loan over decades, the accumulated interest often surpasses the original borrowed amount. Our visual bar chart clearly shows exactly how much of your money is going to the bank as pure interest.

Home Loan EMI Calculator

Monthly Payment (EMI)

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