Interest-Only Loan Calculator

On an interest-only loan you pay just the interest for a set period, and the loan itself does not go down. In India the most common case is pre-EMI on an under-construction home, paid until possession.

Like pre-EMI on an under-construction home.
Results update as you type.

Monthly payment, interest-only period

₹37,500

for 24 months

EMI after that
₹50,713for 180 months
Total interest
₹50,28,39950.28 lakh
Interest paid without reducing the loan
₹9,00,000

About this calculator

Enter the loan, rate, interest-only period and the repayment period after it. You get the payment in each phase and the total interest.

How to use it

  1. Enter the loan amount and rate.
  2. Enter the interest-only months.
  3. Enter the repayment months after that.

The formula

Interest-only payment = loan × rate ÷ 12; then EMI on the full loan
loan
the amount disbursed
rate
yearly interest rate

Worked example

₹50 lakh at 9%, 24 months interest-only, then 15 years

  1. Interest-only payment: ₹37,500 a month.
  2. Then EMI: ₹50,713 for 180 months.
  3. Total interest: ₹50,28,399, of which ₹9 lakh is paid without reducing the loan.

What the result means

Interest-only periods make early payments small but raise total cost. Starting full EMIs from the beginning saves interest.

Assumptions

  • The whole loan is disbursed at the start.

Limitations

  • Construction-linked loans are usually disbursed in stages, so real pre-EMI starts smaller.

Frequently asked questions

What is pre-EMI?

Interest-only payments on the amount disbursed for an under-construction home, until full EMIs begin.

Is pre-EMI or full EMI better?

Full EMI from the start costs less overall; pre-EMI keeps early payments low.

Does pre-EMI reduce the loan?

No. It covers only interest.

For information only. This calculator gives estimates based on the figures you enter and the assumptions listed above. It is not financial advice. Actual amounts depend on the lender’s or institution’s terms, fees, rounding and rate changes. Please confirm with them before you decide.

Last reviewed on 1 October 2026. Found a mistake? Tell us.