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Property Loan EMI Calculator by Reducing Balance
EMI
Reducing Balance
Interest First
Deferred Payment
Balloon Payment
Loan Amount
Loan Tenure
Year
Month
Rate of Interest
%
Copy
Share
EMI
13775
Interest
653000
Principal
1000000
Total
1653000
653 K
(6 Lac)
10
Year
1,000,000
455 K
(4 Lac)
Year
Original
Reduced
𝒊
13775
will be
EMI
for
1000000
(1 m/10 Lac)
Loan Amount
for
10
Year
Loan Tenure
at
11.00%
Rate of Interest
.
How to Reduce Interest/ Tenure?
Pay
0
1
2
3
4
5
Extra EMI every year.
𝒊
Increase EMI by
0
2
3
5
7
10
15
20
% every year.
𝒊
Pay Lump-Sum
0
(10 K)
(20 K)
(30 K)
(40 K)
(50 K)
(60 K)
(70 K)
(80 K)
(90 K)
(100 K)
in
0
1
2
3
4
5
year.
𝒊
Recalculate
Share
Loan
Tenure
Interest
Original
10 year
653000
Reduced
6 year
11 months
455159
Saved
3 year
1 month
197841
Loan Payment Schedule
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Original
Reduced
Balloon Payment
248 K
(2 Lac)
186 K
(1 Lac)
124 K
(1 Lac)
62 K
0
-
-
-
-
-
2024
2029
2033
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Property Loan EMI by Reducing Balance
A Property Loan EMI by Reducing Balance calculates interest on the outstanding principal amount, which decreases as you make repayments. This means that the EMIs gradually reduce over time as the principal balance decreases. This method generally results in lower total interest costs compared to flat rate loans, as interest is charged only on the remaining principal. Plan your property investments smartly with our Property Loan EMI Calculator by Reducing Balance. Break down your monthly payments, interest, and principal to manage your loan and secure your dream property.
Calculate Property Loan EMI by Reducing Balance
Enter loan details including loan amount, interest rate, tenure, and choose months or years to calculate property loan EMI by reducing balance.
Click Calculate to view your initial property loan EMI breakdown and understand your options better.
Customize payment options with three inputs.
Select a number of extra EMIs per year.
Increase EMIs by a percentage.
Select a lump sum payment in a specific year.
Adjust inputs as needed and click Recalculate to update your property loan EMI tenure and interest dynamically.
Reducing Balance EMI formula
To calculate Property Loan EMI, use the Reducing Balance EMI formula for precise results. This calculation helps you understand your repayment obligations clearly.
E
M
I
=
P
×
r
×
(
1
+
r
)
n
(
1
+
r
)
n
-
1
EMI
= Equated Monthly Installments
P
= Principal loan amount
r
= Monthly interest rate
n
= Number of monthly installments
Eligibility Criteria for Property Loan EMI by Reducing Balance
Property Ownership:
Applicants must have legal ownership or co-ownership of the property being mortgaged, which serves as collateral.
Income Stability:
Lenders require a stable income source, such as salaried or rental income, to ensure repayment capacity.
Creditworthiness:
A good credit history and score are essential for loan approval.
Loan-to-Value Ratio:
Lenders impose a maximum loan-to-value ratio, determining the percentage of the property's value that can be financed. Understanding your property loan EMI by reducing balance is key to effective financial planning and managing your property loan EMI.
Property Loan EMI Calculator by Reducing Balance FAQ
How does Reducing Balance EMI differ from Flat Rate EMI?
Reducing balance EMI charges interest on the decreasing principal, leading to gradually lower payments and lower total interest. Flat Rate EMI charges interest on the full principal throughout the term, resulting in fixed payments and generally higher total interest costs.
What are the advantages of a Property Loan EMI by Reducing Balance?
Property loan EMI by reducing balance results in lower overall interest costs, as interest is recalculated on the decreasing principal balance. Borrowers build equity faster and benefit from a transparent amortization schedule that shows how each payment reduces both principal and interest.
What are the disadvantages of a Property Loan EMI by Reducing Balance?
Property loan EMI by reducing balance may have slightly higher initial payments compared to flat rate EMIs, as interest is calculated on the original loan amount. Although it offers cost savings, the method is more complex and requires borrowers to understand how reducing interest rates affect their repayments.
×
How extra EMI(s) help?
At the end of the year, you can pay extra EMIs out of your savings. This extra EMI payment will go towards your Loan Amount and save you on the interest as well as tenure of the loan.
Payment
Tenure
Interest
Current
10 year
653000
1 Extra EMI/ year
9 year
▶ 1 year
567826
▶ 85174
2 Extra EMI/ year
8 year
▶ 2 year
504745
▶ 148255
3 Extra EMI/ year
8 year
▶ 2 year
455746
▶ 197254
How increasing EMI helps?
As your income increases each year, you can get your EMI increased from the bank. This allows you to allocate more funds towards paying off the loan amount and save you on the interest as well as tenure of the loan.
Payment
Tenure
Interest
Current
10 year
653000
Increase EMI by 1%
10 year
▶ 0 year
621833
▶ 31167
Increase EMI by 3%
9 year
▶ 1 year
572868
▶ 80132
Increase EMI by 5%
8 year
▶ 2 year
535579
▶ 117421
How Paying Lumpsum Amount helps?
If you receive unexpected income, such as a bonus or tax refund, consider making a lump-sum payment on your loan. This can help reduce the outstanding loan amount and save you on the interest as well as tenure of the loan.
Payment
Tenure
Interest
Current
10 year
653000
Pay 10% in 2nd year
9 year
▶ 1 year
529226
▶ 123774
Pay 20% in 3rd year
8 year
▶ 2 year
472778
▶ 180222
Pay 30% in 4th year
8 year
▶ 2 year
461230
▶ 191770
How to Reduce Interest/ Tenure?
Making early payments towards Principal amount can reduce your Interest and/ or Tenure.
1. How extra EMI(s) help?
At the end of the year, you can pay extra EMIs out of your savings. This extra EMI payment will go towards your Loan Amount and save you on the interest as well as tenure of the loan.
2. How increasing EMI helps?
As your income increases each year, you can get your EMI increased from the bank. This allows you to allocate more funds towards paying off the loan amount and save you on the interest as well as tenure of the loan.
3. How Paying Lumpsum Amount helps?
If you receive unexpected income, such as a bonus or tax refund, consider making a lump-sum payment on your loan. This can help reduce the outstanding loan amount and save you on the interest as well as tenure of the loan.
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