EMI Calculator
Find your exact monthly EMI for a home, car or personal loan. Enter the amount, rate and tenure, and the result updates as you type.
Monthly EMI
Rs 0
Total interest Rs 0
Total payment Rs 0
Reducing balance method, the standard used by Indian banks.
How this EMI calculator works
EMI stands for Equated Monthly Installment, the fixed amount you pay the bank every month until the loan is closed. Each EMI has two parts: interest on the outstanding balance, and repayment of the principal. In the early years most of the EMI goes to interest, and towards the end most of it goes to principal.
The calculator uses the standard reducing balance formula. For example, a home loan of Rs 25 lakh at 8.5 percent for 20 years works out to an EMI of about Rs 21,696, and you pay roughly Rs 27 lakh as interest over the full tenure. Small changes matter: cutting the tenure from 20 to 15 years raises the EMI by a few thousand rupees but saves several lakh in interest.
Tips before you take a loan
Keep your total EMIs under about 40 percent of your monthly income, compare rates across two or three banks, and check whether prepayment is allowed without penalty. Even one extra EMI paid per year can shorten a 20 year loan by more than two years.
Frequently asked questions
How is EMI calculated?
EMI is calculated with the formula EMI = P x R x (1+R)^N / ((1+R)^N - 1), where P is the loan amount, R is the monthly interest rate (annual rate divided by 12 and by 100) and N is the number of monthly installments.
Does a longer tenure reduce my EMI?
Yes. A longer tenure lowers the monthly EMI but increases the total interest you pay over the life of the loan. A shorter tenure costs more per month but saves interest overall.
Is this EMI calculator accurate for home loans?
Yes, it uses the standard reducing balance formula used by banks in India for home, car and personal loans. Your bank may add processing fees or insurance, which are not part of the EMI itself.
What happens if interest rates change?
For floating rate loans, the bank recalculates either your EMI or your tenure when rates change. Rerun the calculator with the new rate to see the updated EMI.