About the Interest-Only EMI Calculator
What is the Interest-Only EMI Calculator?
An interest-only loan lets you pay just the interest for an initial period — useful during construction, a business ramp-up or studies. The principal does not fall during that time, so later EMIs are larger and total interest is higher.
Enter the loan, rate, interest-only months and total tenure. The calculator shows the interest-only payment, the EMI afterwards, the total interest and how much extra you pay compared with a regular EMI loan.
How to use the Interest-Only EMI Calculator
- Loan Amount (₹) (sample: 15,00,000)
- Interest Rate (% per year) (sample: 9)
- Interest-Only Period (months) (sample: 24)
- Total Tenure (years) (sample: 15)
- Press Calculate Interest-Only EMI (results also refresh as you type). The result card shows the Interest-Only Payment, along with EMI after the interest-only period, Total interest, Regular EMI for the whole tenure and Extra interest vs a regular loan.
Formula used
Interest-only payment = P × r
- EMI afterwards = standard EMI on P over the remaining months
- r = monthly rate = annual rate ÷ 12 ÷ 100
Pre-EMI interest on under-construction homes works the same way on the amount disbursed.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Loan Amount (₹) | 15,00,000 |
| Interest Rate (% per year) | 9 |
| Interest-Only Period (months) | 24 |
| Total Tenure (years) | 15 |
| Result | Value |
|---|---|
| Interest-Only Payment | ₹11,250 |
| EMI after the interest-only period | ₹16,345 |
| Total interest | ₹13,19,852 |
| Regular EMI for the whole tenure | ₹15,214 |
| Extra interest vs a regular loan | ₹81,333 |
Tips for using the Interest-Only EMI Calculator
- Use the interest-only period only when cash flow truly needs it.
- Paying even a little principal during the period reduces total interest.
- Check whether the lender reprices the loan after the interest-only period.