Extra Payment Calculator
What paying a little more each month actually buys you. On a 20-year home loan an extra ₹5,000 clears it more than four years early and saves close to ₹14 lakh in interest.
Also called: pay extra on mortgage, round up my emi, additional principal payment.
$525.05 a month for 5 years. Over the full term you repay $31,502.79, of which $6,502.79 is interest. 26.01% of what you borrowed.
An estimate, not an offer or a guarantee. Projected returns assume the rate you entered holds for the whole term, which no market does.
Where your money goes
Outstanding balance
Hover or drag for values| Month | Payment | Interest | Principal | Balance |
|---|---|---|---|---|
| 1 | $525 | $198 | $327 | $24,673 |
| 2 | $525 | $195 | $330 | $24,343 |
| 3 | $525 | $193 | $332 | $24,011 |
| 4 | $525 | $190 | $335 | $23,676 |
| 5 | $525 | $187 | $338 | $23,338 |
| 6 | $525 | $185 | $340 | $22,998 |
| 7 | $525 | $182 | $343 | $22,655 |
| 8 | $525 | $179 | $346 | $22,309 |
| 9 | $525 | $177 | $348 | $21,961 |
| 10 | $525 | $174 | $351 | $21,610 |
| 11 | $525 | $171 | $354 | $21,256 |
| 12 | $525 | $168 | $357 | $20,899 |
This is what the calculation gives for the numbers you entered. It is an estimate, not advice, and it knows nothing about your situation beyond those numbers. Rules for United States change on a published schedule; the effective date is shown on every rule-based tool.
How this is calculated
The same reducing-balance schedule as any loan, simulated month by month with your extra amount added to every instalment. Because the extra goes entirely to principal, its effect compounds: every rupee of principal removed early is a rupee that stops accruing interest for the rest of the term, which is why a small standing extra beats a large late one.
E = P * i * (1+i)^n / ((1+i)^n - 1)- E
- The equal periodic instalment (currency)
- P
- Principal: the amount borrowed (currency)
- i
- Monthly interest rate = annual rate ÷ 12 ÷ 100 (decimal)
- n
- Total number of monthly instalments (months)
Method and limits
What it assumes
- Interest compounds monthly on the reducing balance.
- The rate stays fixed for the whole term. Floating-rate loans reset periodically.
- Processing fees, insurance and statutory charges are excluded.
What it deliberately does not model
- Does not model rate resets on floating-rate loans. Most lenders hold the instalment steady and extend the term instead, so a rate rise can add years without changing what leaves your account each month.
- Does not include property insurance, maintenance or association dues, or any lender fee.
- Assumes every instalment is paid in full and on time.
Formula version 1.0.0 · definition 1.0.0 · United States · Report a problem with this calculator
Frequently asked questions
- Why is my bank's EMI a few rupees different from mine?
- Rounding. Lenders round the instalment and true up the final payment against the residual balance, which is why the last month of a schedule looks lopsided. A difference of one or two is normal; a difference of hundreds means a different rate, tenure or fee assumption.
- Why is my EMI almost all interest in the early years?
- Interest in any month is the rate times the previous balance, and the balance starts at its maximum. On a 20-year loan at 8.5% the first year is about 81% interest. The only way to change the shape of that is to attack the balance early, which is what prepayment does.