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About the Step Up EMI Calculator
A step-up loan starts with an EMI below the standard instalment and increases it by a fixed percentage every year, on the assumption that your income will rise too. Banks market it to young borrowers because it raises eligibility — a lower first-year EMI passes the FOIR test on a bigger loan.
Understand the trade-off. Because you repay less principal early, more interest accrues, and the total cost is higher than a level EMI. It is a cash flow tool, not a saving.
The formula
The calculator solves for the starting EMI by bisection and then replays the full schedule.
Things worth knowing
Frequently asked questions
A repayment structure where the instalment starts lower than a standard EMI and rises by a set percentage each year, matching an expected rise in income.
Yes. Slower principal repayment in the early years means more interest accrues. The extra cost is shown above for your numbers.
Borrowers early in a career with strong, predictable income growth who need a larger loan today than a level EMI would support.
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