Starting an investment plan when your child is born is the greatest financial gift you can give them. A small monthly contribution compounded over 18 to 21 years can generate a massive tax-efficient corpus to fund their marriage, higher education, or first business venture.
Calculator Inputs
Live Calculation Yr
0 15
Yr
18 30
₹
₹ 1K ₹ 1L
₹
₹ 0 ₹ 50L
%
6% 15%
Total Corpus at Age 21 info
₹ 0
redeem
Total Invested
₹ 0
Est. Returns Earned
₹ 0
security Local Math Engine
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Formula Details
How the math works
Equated Monthly Installments (EMI) are calculated using the standard reducing balance amortization model.
EMI = P × r × [((1 + r)^n) / ((1 + r)^n - 1)]
EMI
Equated Monthly Installment
P
Principal Loan Amount borrowed
r
Monthly interest rate (Annual Rate / 12 / 100)
n
Total loan repayment tenure in months (Years × 12)
Reference Deck
Standard Benchmarks
Sample projections under common configurations.
| Scenario | Short-Term | Medium-Term | Long-Term |
|---|---|---|---|
| ₹20 Lakh Home Loan (8.5% p.a.) | 10 Yrs EMI: ₹24,797 | 15 Yrs EMI: ₹19,695 | 20 Yrs EMI: ₹17,356 |
| ₹50 Lakh Home Loan (8.5% p.a.) | 10 Yrs EMI: ₹61,993 | 15 Yrs EMI: ₹49,237 | 20 Yrs EMI: ₹43,391 |
| ₹5 Lakh Personal Loan (12% p.a.) | 3 Yrs EMI: ₹16,607 | 5 Yrs EMI: ₹11,122 | 7 Yrs EMI: ₹8,812 |
FAQs
Compliance & Calculations
What is reducing balance amortization? expand_more
Reducing balance amortization means that interest is calculated only on the remaining outstanding principal amount, not the initial loan principal, saving you massive interest charges over the tenure.
How can I reduce my total loan interest liability? expand_more
You can reduce your total interest liability by opting for a shorter tenure, making regular part-prepayments, or using balance transfer facilities to switch to a lower interest rate.
Does prepaying my home loan attract penalties in India? expand_more
Under RBI regulations, individual borrowers with floating interest rate home loans do not attract any prepayment penalties from banks or financial institutions.