EMI Calculator India
Calculate EMI for home loan, car loan, personal loan. Get monthly EMI, total interest, and amortization schedule.
About this calculator
EMI stands for equated monthly instalment, the fixed amount you pay your lender every month until a loan is cleared. This EMI calculator works out that monthly amount for a home, car or personal loan, along with the total interest you will pay over the full term.
Seeing total interest next to the principal helps you compare loan offers properly. A lower EMI from a longer tenure can cost much more in interest overall.
How to use it
- Enter the loan amount you want to borrow.
- Enter the annual interest rate from the lender's offer.
- Enter the loan tenure in years.
- Read the monthly EMI, total interest and total payment. Try a shorter tenure to see how much interest you save.
The EMI formula
EMI = P × r × (1 + r)n / ((1 + r)n − 1)
P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly instalments. Total interest is EMI × n − P.
Worked example
₹10,00,000 at 8.5% for 20 years
| Item | Amount |
|---|---|
| Monthly EMI | ₹8,678 |
| Total payment (exact EMI × 240) | ₹20,82,776 |
| Total interest | ₹10,82,776 |
For a ₹5,00,000 loan at 9% for 5 years, the EMI is about ₹10,379.
Tips and common mistakes
- Compare total interest, not just the EMI. A smaller EMI often means a much larger total cost.
- Part-prepayments reduce the principal early, when most of each EMI is interest, so they save the most.
- Check for processing fees, insurance and prepayment charges, which are not part of the EMI.
- Floating-rate loans change the rate over time. Recalculate when your lender revises the rate.
Frequently asked questions
How is EMI calculated?
EMI is based on the loan amount, monthly interest rate and number of instalments, using the reducing-balance method. Each payment covers that month's interest and the rest reduces the principal.
Does a longer tenure reduce my cost?
It lowers the monthly EMI but increases total interest. A shorter tenure has a higher EMI and costs less in interest overall.
What is the reducing balance method?
Interest is charged only on the outstanding principal, which falls every month. That is why early EMIs are mostly interest and later EMIs are mostly principal.
Will my lender's EMI match this calculator?
Usually it matches closely. Small differences arise from rounding, the first instalment date and processing charges that the lender adds.
Should I prepay my loan?
If your savings earn less than your loan rate, prepaying usually saves money. Check the lender's prepayment charges first, since floating-rate home loans typically have none for individuals.
What EMI-to-income ratio is safe?
Many lenders prefer total EMIs under about 40% to 50% of monthly income. Keeping it lower leaves room for emergencies.