Compare EMI scenarios
Change one input, hold everything else identical, and see how much that one input is actually worth. The gap between the scenarios is the whole answer.
What to compare
Everything else below is held identical across the scenarios, so the only thing separating the lines is this one input.
Shared by every scenario
The rate quoted by the lender, per year.
Side by side
| Scenario | Loan tenure | Monthly EMI |
|---|---|---|
| Scenario A | 10 years | ₹61,993 |
| Scenario B | 20 years | ₹43,391 |
| Scenario C | 30 years | ₹38,446 |
Moving loan tenure from 10 years to 30 years changes monthly emi by −₹23,547. Every other input was identical in both.
Show how each scenario is calculatedHide the working
Scenario A — 10 years
Monthly interest rate
8.5% ÷ 12
= 0.7083% (0.007083)
Number of instalments
10 years × 12
= 120 months
Compound one rupee over the term
(1 + 0.007083)^120
= 2.332647
Apply the EMI formula
₹50,00,000 × 0.007083 × 2.332647 ÷ (2.332647 − 1)
= ₹61,993
Every instalment is the same size; what changes is how much of it is interest.
Scenario B — 20 years
Monthly interest rate
8.5% ÷ 12
= 0.7083% (0.007083)
Number of instalments
20 years × 12
= 240 months
Compound one rupee over the term
(1 + 0.007083)^240
= 5.441243
Apply the EMI formula
₹50,00,000 × 0.007083 × 5.441243 ÷ (5.441243 − 1)
= ₹43,391
Every instalment is the same size; what changes is how much of it is interest.
Scenario C — 30 years
Monthly interest rate
8.5% ÷ 12
= 0.7083% (0.007083)
Number of instalments
30 years × 12
= 360 months
Compound one rupee over the term
(1 + 0.007083)^360
= 12.692499
Apply the EMI formula
₹50,00,000 × 0.007083 × 12.692499 ÷ (12.692499 − 1)
= ₹38,446
Every instalment is the same size; what changes is how much of it is interest.
Every scenario is computed by the same engine the monthly emi calculator uses, so the last line of each is the figure in the table above. Intermediate values are shown rounded for reading; the calculation carries full precision throughout.
Over time
Each line is one scenario. Because every other input is identical, the gap between them is the effect of loan tenure alone.
How to read this
- Only one input differs. Every other value is identical across the scenarios, which is what makes the gap between them readable. If each scenario had its own assumed return, the chart would be comparing guesses rather than choices.
- A bigger number is not automatically better. On a loan comparison the larger figure is the worse one, and on any of these the right answer depends on circumstances this page knows nothing about.
- The rate is still an assumption. Comparing scenarios does not make any of them a forecast — it only shows how sensitive the outcome is to the input you changed.
To see the arithmetic behind a single scenario, use the EMI Calculator, which shows the formula and works it through with your numbers.