EMI Calculator
Work out the monthly EMI on a home, car or personal loan — plus the total interest you will pay and a year-by-year repayment schedule.
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How to use this calculator
- Enter loan amount
- Enter interest rate — The annual rate your bank quotes.
- Enter loan tenure
- Read the result — it updates as you type.
The formula used
EMI = P × i × (1 + i)n ÷ [ (1 + i)n − 1 ]
- P
- Loan amount (principal)
- i
- Monthly interest rate = annual rate ÷ 12 ÷ 100
- n
- Number of monthly instalments (years × 12)
This is the standard EMI formula used by every bank in India. The EMI itself never changes, but its split does: each month, interest is charged on the balance still outstanding, and whatever is left of the EMI reduces the loan.
That is why the schedule below shows interest falling and principal rising over time, even though the payment is identical every month.
Worked example
A home loan of ₹25,00,000 at 8.5% for 20 years.
- Principal (P)₹25,00,000
- Monthly rate (i)8.5 ÷ 12 ÷ 100 = 0.0070833
- Months (n)20 × 12 = 240
- (1.0070833)240 = 5.4222
- EMI = 25,00,000 × 0.0070833 × 5.4222 ÷ (5.4222 − 1)
- EMI = 96,015 ÷ 4.4222 = ₹21,696
You repay ₹21,696 × 240 = ₹52,07,040 in total — of which ₹27,07,040 is interest, more than the loan itself.
Understanding your EMI
An EMI is a fixed monthly payment that covers both interest and repayment of the loan. The amount stays the same; what changes is how much of it is doing useful work.
The first years are mostly interest
On a ₹25 lakh loan at 8.5%, the very first EMI of ₹21,696 contains about ₹17,708 of interest and only ₹3,988 of actual repayment. Ten years in, the split is roughly half and half. In the final year almost all of it reduces the loan.
This is why early prepayment is powerful
A rupee prepaid in year two removes eighteen years of future interest on that rupee. The same prepayment in year eighteen saves almost nothing. If you expect a bonus, the earliest years are where it does the most good.
Tenure versus EMI
Stretching a loan lowers the EMI and raises the total cost, often dramatically. On the example above, moving from 20 to 30 years drops the EMI to about ₹19,222 but pushes total interest past ₹44 lakh. Comfort has a price; this calculator shows you what it is.
What banks add that this does not
Processing fees, insurance bundled with the loan, and rate resets on a floating-rate loan. Ask for the full amortisation schedule in writing before signing.
Tips and common mistakes
Getting more out of it
- Look at the year-by-year table. Early payments are mostly interest, which is why prepaying early saves so much.
- Borrow over the shortest tenure whose EMI you can sustain in a bad month, not the lowest EMI on offer.
Mistakes to avoid
- Choosing a longer tenure because the EMI looks affordable, without noticing the total cost roughly doubles.
- Forgetting processing fees and loan insurance, which are not part of the EMI.
- Assuming a floating rate stays put. Re-run the numbers whenever your bank revises it.
Frequently asked questions
Why is my bank's EMI slightly different?
Banks round the EMI, may charge interest from the disbursal date rather than a clean month boundary, and sometimes add fees into the loan. A difference of a few rupees is normal; a difference of hundreds means the rate or tenure you entered does not match the sanction letter.
Is it better to reduce the EMI or the tenure when I prepay?
Keeping the EMI the same and shortening the tenure saves considerably more interest. Reducing the EMI eases monthly cash flow instead. The Prepayment Calculator shows both.
What happens if the interest rate changes?
On a floating-rate loan, banks usually keep the EMI unchanged and adjust the tenure. Recalculate here with the new rate to see the real impact.
Does a longer tenure mean a cheaper loan?
No — it means a smaller monthly payment and a much larger total cost. Borrow over the shortest tenure whose EMI you can comfortably afford.
How much EMI can I afford?
A common guideline is to keep all EMIs together under about 40% of your take-home pay, with home loans no more than 30–35%. Lenders apply their own limits, which may be higher than is comfortable.
Does this work for car and personal loans?
Yes. The formula is identical — only the rate and tenure differ. Personal loans typically run 10–20% for 1–5 years, car loans 8–12% for 3–7 years.
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