On a ₹10,00,000 loan at 9% a year for 20 years, the loan calculator gives an EMI of about ₹8,997. Pay that for 240 months and the total is about ₹21.6 lakh. A little over half of that is interest.
Interest is charged on the balance you still owe
Each month the interest is the outstanding principal times the monthly rate. At 9% a year the monthly rate is 0.75%. In the first month that is about ₹7,500 of the ₹8,997, so only about ₹1,500 reduces the loan. Next month the balance is smaller, so the interest is a little smaller, and a little more of the same EMI goes to principal.
What the yearly table is adding up
The page keeps the EMI fixed, then walks month by month. Each year row sums twelve of those months: principal repaid, interest paid, and the balance left. The balance column is the number that should reach zero in the final year. If a lender adds a fee or charges interest on a daily product, their schedule will differ from this one.
- A longer tenure lowers the EMI and raises the total interest.
- A shorter tenure does the opposite. The yearly table makes that trade visible.
- A floating rate needs a fresh calculation when the rate changes. This page holds the rate still.
Compare two tenures before treating the lowest EMI as the cheaper loan. The cheaper loan is the one with the lower total payment for a term you can actually keep.