EMI Calculator

Loan EMI: principal, rate and tenure. For home, car or personal loan.

Gratuity PPF EPF / PF EMI SIP FD NPS Income Tax HRA

Loan amount (₹)

₹

Interest rate (p.a.) %

Tenure

yrs

EMI & total cost

Monthly EMI₹ 26,035

Total interest₹ 32,48,327

Total payment₹ 62,48,327

EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1). P = principal, r = monthly rate, n = months.

EMI (Equated Monthly Installment) is the fixed amount you pay every month to repay a loan. Whether it is a home loan, car loan, or personal loan, the EMI depends on three things: loan amount (principal), interest rate, and tenure.

What is this calculator?

An EMI Calculator helps you find out how much you need to pay every month for a loan. Enter the loan amount, annual interest rate, and tenure in years. The calculator instantly shows your monthly EMI, total interest payable, and total payment over the loan period.

Formula

EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)

Where:
• P = Principal loan amount
• r = Monthly interest rate = Annual rate ÷ 12 ÷ 100
• n = Total number of monthly installments (tenure in months)

In the early months, a larger portion of EMI goes toward interest. Over time, the principal component increases (this is called amortisation).

Example

Home loan: ₹50 lakh, interest rate 8.5%, tenure 20 years (240 months). Monthly EMI = ₹43,391. Total interest over 20 years = ₹54,13,878. Total payment = ₹1,04,13,878. If you increase tenure to 25 years, EMI drops to ₹40,260 but total interest jumps to ₹70,78,094. You pay ₹16.6 lakh more in interest for ₹3,131 less EMI per month.

Benefits

✓Know your exact monthly outflow before taking a loan. Budget accurately.
✓Compare different loan offers: which bank/tenure saves most interest?
✓Plan prepayment: see how paying extra reduces total interest dramatically.
✓Works for any loan type: home, car, personal, education, gold.

Frequently Asked Questions

Does EMI remain the same throughout the loan?: For fixed-rate loans, yes. For floating-rate loans (most home loans in India), the EMI or tenure may change when the bank revises the interest rate.
Should I choose a shorter or longer tenure?: Shorter tenure = higher EMI but significantly less total interest. Longer tenure = lower EMI but much more interest paid overall. Choose based on your monthly cash flow and financial goals.
Can I prepay my loan to reduce interest?: Yes. Most banks allow part-prepayment without penalty on floating-rate loans (as per RBI guidelines). Prepaying even a small amount early in the loan saves a disproportionately large amount of interest.
What is the difference between flat rate and reducing balance?: Flat rate charges interest on the original principal throughout. Reducing balance charges interest only on the outstanding amount. This is what banks typically use and what this calculator computes. A flat rate of 10% is roughly equivalent to a reducing balance rate of ~18%.
Is home loan interest tax-deductible?: Yes. Under Section 24(b), up to ₹2 lakh of home loan interest is deductible for a self-occupied property. Principal repayment qualifies under Section 80C (up to ₹1.5 lakh).

This calculator uses the reducing balance method. Actual EMI may vary slightly based on the bank's calculation convention (e.g., 30/360 vs actual/365).