Pre-EMI vs full EMI calculator

On an under-construction home the bank pays the builder in stages. With pre-EMI you pay only interest until possession; with full EMI repayment starts at once. Everything runs in your browser; nothing you type is saved or sent.

Pre-EMI or full EMI

Two ways to repay a loan on an under-construction home.

Loan amount (₹)

₹50 lakh

Interest rate (% a year)

Loan tenure (years)

Months until possession

Extra interest with pre-EMI

₹22,48,126

Pre-EMI: ₹4,42,708 of interest-only payments, then EMI ₹43,391; total interest ₹58,56,587, loan ends in month 264

Full EMI: EMI ₹43,391 from the first disbursement; total interest ₹36,08,461, loan ends in month 199

Assumes the loan is paid out in equal parts at the start of each month until possession, the rate never changes, and under pre-EMI the full tenure starts at possession. Under full EMI the same EMI is paid from the first month, so early payments repay principal sooner. Months are counted from the first disbursement. Banks set their own terms; check the sanction letter.

Common questions

What is pre-EMI?

Interest only on the part of the loan paid out so far, until possession. The regular EMI, which also repays principal, starts after that.

Why does pre-EMI cost more interest?

Pre-EMI payments repay no principal, and the full tenure starts only at possession, so the loan runs longer.

How are disbursements modelled?

As equal amounts at the start of each month until possession, at a rate that never changes. Real schedules follow construction stages, so treat the result as an estimate.