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EMI Calculator

Find your monthly loan EMI for a home, car or personal loan, see how much interest you will pay and check the year-wise repayment schedule.

Rules last reviewed: September 2026

Disclaimer: Results are estimates for informational purposes only and are not professional financial, tax or legal advice. Rules change — please verify with official sources or a qualified professional before making decisions.

What is an EMI and why does it matter?

An EMI (Equated Monthly Instalment) is the fixed amount you pay your lender every month until a loan is fully repaid. Each EMI has two parts: interest on the balance you still owe, and a repayment of principal. In the early years most of the EMI is interest; as the balance falls, more of it goes towards principal.

Knowing your EMI before you borrow helps you choose a loan you can comfortably afford, compare lenders, and see how tenure and interest rate change the total cost.

How the EMI formula works

EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)
P = loan amount · r = annual rate ÷ 12 ÷ 100 · n = months

The formula spreads the loan, and the interest that builds up on it, evenly over n months so every instalment is identical. Interest is charged on the reducing balance, which is why the interest portion shrinks with every payment.

Worked example

₹10,00,000 loan at 9% for 10 years

Monthly rate (r)
0.75%
Number of months (n)
120
Monthly EMI
₹12,668
Total payment
₹15,20,109
Total interest
₹5,20,109

You repay ₹15,20,109 in total — interest adds 52% on top of what you borrowed.

Ways to lower your loan cost

  • A longer tenure lowers the EMI but increases total interest.
  • Part-prepayments reduce the outstanding principal, cutting interest and shortening the loan.
  • Even a 0.5% lower rate on a 20-year home loan can save several lakh rupees — compare offers.
  • Keep all EMIs within roughly 40–50% of take-home income, the range most banks use.

Floating-rate loans change when the lender's benchmark rate moves, altering your EMI or tenure. This calculator assumes one fixed rate for the whole tenure.

Frequently asked questions

Is EMI calculated on a reducing balance?

Yes. Banks charge interest each month on the outstanding principal, so the interest part of your EMI falls and the principal part rises over time. Flat-rate loans, which charge interest on the original amount, cost noticeably more at the same quoted rate.

Does a longer tenure reduce my EMI?

It does, because the loan is spread over more months. But you pay interest for longer, so the total cost is higher. Choose the shortest tenure whose EMI you can afford comfortably.

Are processing fees and insurance included in the EMI?

No. This calculator covers principal and interest only. Processing fees, insurance premiums and other charges are separate and vary by lender.

How does prepayment change my EMI?

After a part-prepayment most lenders let you either keep the EMI and shorten the tenure, or keep the tenure and lower the EMI. Reducing the tenure usually saves more interest.