EMI Calculator
Calculate your monthly loan instalment for home, car, personal, or business loans.
How does this EMI calculator work?
Enter your loan amount, annual interest rate, and loan tenure to calculate your monthly EMI, total interest payable, and total payment.
Formula
EMI = P × r × (1+r)n / ((1+r)n - 1) Where:
- P = Principal (loan amount)
- r = Monthly interest rate (annual / 12 / 100)
- n = Loan tenure in months
EMI remains fixed throughout the loan tenure. In the early months, a larger portion goes toward interest; later, more goes toward principal repayment.
Why use an EMI calculator?
- Compare loan offers from different lenders before committing
- Understand the total cost of your loan including interest
- Plan your monthly budget around loan repayments
- Compare shorter vs longer tenure for EMI and total interest
Note: Estimates only. Actual EMI may differ by lender fees, insurance, and rate changes. Not financial advice.
EMI Calculator: guide and FAQ
What is it?
EMI is the fixed monthly payment on a loan (home, car, personal, education, etc.). Each EMI pays interest and principal. Early EMIs are mostly interest; later ones repay more principal. This calculator uses the usual reducing-balance formula that Indian banks apply.
How to use this calculator
- Enter loan amount Enter the principal borrowed. Exclude fees unless your bank adds them to the loan.
- Set interest rate Use the annual rate from your lender. Floating loans can change; this tool keeps one rate for the full tenure.
- Choose tenure A longer tenure means a lower EMI but more total interest. A shorter tenure does the opposite.
- Compare EMI, interest, and total payment See monthly EMI, total interest, and total outgo. The chart splits principal and interest over time.
Worked example
₹10 lakh at 8.5% for 5 years gives an EMI of about ₹20,500 and total interest near ₹2.3 lakh in this model.
Practical tips
- One extra EMI a year on a home loan can cut total interest noticeably.
- Compare the effective rate (APR), not only the advertised rate.
- Many lenders suggest keeping total EMIs under about half of take-home pay.
Frequently asked questions
Does EMI include insurance or processing fees?
Usually not. This covers principal and interest on the loan amount only.
Can I prepay to reduce interest?
Yes, if your lender allows it. Prepayment cuts the outstanding balance and future interest. Check prepayment charges.
Fixed vs floating rate: what should I enter?
Enter the rate that applies to you today. For floating loans, run the numbers again if rates move a lot.
Why is total interest so high on long home loans?
Interest is charged on the balance each month. Over 20-25 years, even a moderate rate adds up.