Work out step up emi instantly with clear inputs, formula shown and shareable results.
A step-up EMI starts below the level instalment and rises each year, matching an expected salary path. The starting figure is found by discounting the whole rising payment stream at the loan rate and setting its present value equal to the loan.
Step-up EMI
P = Σ EMI₁(1+g)^(year-1) · (1+r)^-t
Figures are estimates. Lenders apply their own rounding, fees and eligibility rules, and rates change. This is not financial advice — confirm the numbers with your lender.
Slightly more interest than a level EMI, because repayment is pushed later — the trade is easier early cash flow.
The rising instalment becomes a strain, so keep the step-up rate below your realistic pay growth.