Balance year by year
| Year | Principal paid | Interest paid | Balance left |
|---|---|---|---|
| 1 | 297,018 | 261,420 | 1,702,982 |
| 2 | 341,375 | 217,063 | 1,361,607 |
| 3 | 392,357 | 166,081 | 969,250 |
| 4 | 450,952 | 107,486 | 518,298 |
| 5 | 518,298 | 40,140 | 0 |
How EMI is calculated
EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1), where P is the loan amount, r is the monthly rate (yearly rate ÷ 12 ÷ 100) and n is the number of months.
In the early years most of each installment goes to interest. As the balance falls, more of it pays off the loan itself.
Frequently asked questions
What does EMI mean?
EMI stands for equated monthly installment: the same amount you pay every month until the loan is paid off.
How can I pay less interest?
Borrow less, choose a shorter term, or make extra payments early on. A shorter term raises the monthly installment but cuts the total interest a lot.
Does this include insurance and fees?
No. Banks may add processing fees, insurance or takaful. Add those to the installment shown here for your full monthly cost.