EMI Calculator
This EMI calculator tells you the exact equated monthly instalment on any loan — home, car, personal or education — along with the total interest you will pay over the full tenure. Enter the loan amount, the annual interest rate and the tenure, and the EMI updates instantly. It uses the same reducing-balance formula that every Indian bank and NBFC applies, so the figure you see here is the figure that will appear in your loan schedule.
The total amount you plan to borrow. For a home loan, this is the property cost minus your down payment.
The reducing-balance rate your bank quotes — not the flat rate. Home loans are roughly 8–10%, car loans 8–12%, personal loans 10–18%.
Repayment period in years. Home loans run up to 30 years; car loans up to 7; personal loans up to 5.
Monthly EMI
₹21,696
The fixed instalment your bank debits every month — e.g. ₹21,696/month on a ₹25,00,000 loan at 8.5% over 20 years.
Everything you pay beyond the principal — the real cost of the loan. This is the number worth negotiating a lower rate against.
Principal plus total interest — the full amount you'll hand over to the lender across every EMI combined.
The loan amount itself, shown here so you can compare it directly against the total payment above.
How to use this emi calculator
- 1Loan amount: enter the amount you are borrowing after your down payment. Buying a ₹35,00,000 flat with ₹10,00,000 of your own money means a ₹25,00,000 loan.
- 2Interest rate: enter the annual reducing-balance rate from your bank's sanction letter. If a dealer quotes a 'flat rate', convert it first — a 7% flat rate is roughly 13% reducing, and entering 7% here would badly understate your EMI.
- 3Tenure: choose years (use 0.5 steps for six-month precision). Longer tenures cut the EMI but sharply raise total interest.
- 4Check the interest bar: the amber share shows how much of your money never buys you anything — it is pure cost.
Understanding your results
Your EMI is fixed for the tenure on a fixed-rate loan, but its composition changes monthly: early EMIs are mostly interest, later ones mostly principal. Total interest payable is the number to negotiate against — dropping the rate by even 0.25% on a 20-year home loan saves lakhs. Total payment shows the true price of the purchase: a ₹25 lakh home loan at 8.5% for 20 years actually costs you ₹52 lakh. If the EMI exceeds 40% of your take-home pay, most planners would say the loan is too large — extend the tenure, increase the down payment, or choose a cheaper asset.
The formula
EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)P is the principal, r the monthly interest rate (annual rate ÷ 12 ÷ 100), and n the number of months. The formula assumes interest on the reducing balance — each EMI pays that month's interest first, and the remainder reduces the principal, so next month's interest is smaller. This is why a prepayment made in year 2 saves far more interest than the same prepayment in year 15. Note that some lenders compute using daily reducing balance, which is marginally cheaper for you than monthly reducing.
A worked example
A ₹25,00,000 home loan at 8.5% for 20 years: the monthly rate is 0.7083% and n is 240 months. The EMI works out to ₹21,696. Over 240 months you pay ₹52,06,932 in total — of which ₹27,06,932 is interest, more than the loan itself. Now try 15 years instead: the EMI rises to ₹24,618 but total interest falls to ₹19,31,282, saving ₹7.75 lakh. A 0.5% rate cut to 8.0% at 20 years saves another ₹2.1 lakh. Small changes, enormous money — which is exactly why you should model them before signing.
Notes for the UK, US and India
Indian floating-rate home loans are linked to the RBI repo rate, so your EMI or tenure can change when rates move — lenders usually adjust tenure first. RBI rules bar prepayment penalties on floating-rate home loans for individuals, so prepaying is almost always smart; car and personal loans may still charge 2–5% foreclosure fees, so check before prepaying those. First-time buyers can claim deductions under Section 80C (principal) and Section 24(b) (interest up to ₹2 lakh) under the old regime. This calculator's EMI matches bank quotes within a rupee or two; tiny differences come from rounding and disbursement-date conventions.
Frequently asked questions
How is EMI calculated?+
EMI = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1), where P is the loan amount, r the monthly interest rate, and n the number of months. Every Indian bank uses this reducing-balance formula for home, car and personal loans.
What is the difference between flat rate and reducing rate?+
A flat rate charges interest on the original loan for the entire tenure; a reducing rate charges interest only on the outstanding balance. A 7% flat rate costs roughly the same as a 13% reducing rate — always convert before comparing loan offers.
How can I reduce my EMI?+
Three levers: negotiate a lower rate (even 0.25% matters), extend the tenure, or increase the down payment. If your loan is already running, a balance transfer to a cheaper lender or part-prepayment will cut either the EMI or the tenure.
Is it better to prepay or invest the money?+
Prepaying a 9% loan earns you a guaranteed, tax-free 9% return — hard to beat with safe investments. If you can reliably earn more post-tax than your loan rate, investing wins; otherwise prepay, especially in the early years.
Why does my bank's EMI differ slightly from this calculator?+
Banks round EMIs to the nearest rupee, may use daily rather than monthly reducing balance, and count from the actual disbursement date. Differences of a few rupees are normal and even out over the tenure.
What happens to my EMI when the repo rate changes?+
On floating-rate loans, most banks keep the EMI constant and extend or shorten the tenure instead. Some adjust the EMI directly. Either way, a rate cut saves you money; a rate hike costs you — model both scenarios here.