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FreeFinance

Borrowing, and what interest really costs

Why is so much of an early EMI interest, and what does paying a loan off sooner actually save?

3 steps · Decisions

The path

  1. Read

    Why your EMI is mostly interest at the start

    The schedule behind a loan, and why the balance barely moves in the first years.

  2. Calculate

    EMI Calculator

    Your loan, with the whole amortisation shown rather than a monthly figure alone.

  3. Compare

    EMI side by side

    Hold the loan steady and vary the tenure. The number to watch is the total interest, not the EMI.

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After this one

Renting or buying a home

Is rent really money down the drain, and how long would you have to stay for buying to win?