EMI calculator
Calculate the monthly EMI for any loan — home, car, personal, or education. See total interest payable and a full month-by-month amortisation schedule.
What is an EMI calculator?
An Equated Monthly Installment (EMI) is the fixed amount you pay to a lender each month until the loan is fully repaid. Each EMI includes both principal repayment and interest — early payments are mostly interest, while later payments are mostly principal. This calculator shows your exact EMI, total interest cost, and the full amortization schedule for any loan.
"The policy will have to remain awake to the possible sources of fragility engendered by the increase in consumption loans and the proliferation of unsecured forms of consumer credit."
The EMI formula
EMI = P × r × (1 + r)^n / ((1 + r)^n - 1), where P is the principal, r is the monthly interest rate (annual ÷ 12), and n is the number of months. At 8.5% on ₹50 lakh for 20 years, you pay ₹43,391 per month — totalling ₹1.04 crore, of which ₹54.1 lakh is interest alone.
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Planning beyond the loan
A loan reshapes your monthly budget for years. Planning to draw from savings later? Use the SWP calculator to model systematic withdrawals. Thinking about investing instead of prepaying? Try the SIP calculator to see what the same monthly amount grows into over your loan tenure.
Common Uses
- Home loan affordability check: Before applying for a home loan, calculate the EMI at current rates to confirm it fits within 40–50% of your monthly income.
- Loan comparison: Compare EMIs across banks at different interest rates to identify the lender offering the most affordable monthly outflow.
- Pre-payment planning: Model how a lump-sum part-payment changes the remaining EMI or tenure to plan annual bonus utilisation.
- Car loan budgeting: Determine the on-road price range where the car loan EMI stays within a comfortable monthly budget.
- Personal loan evaluation: Calculate the total interest paid over the loan tenure to evaluate whether the purpose justifies the cost of borrowing.
- Business loan planning: SMEs calculate equipment or working capital loan EMIs to confirm the business cash flow can comfortably service the debt.
- Refinancing analysis: Compare current loan EMI with a refinanced loan at a lower rate to quantify the monthly saving and break-even period.
- Tenure optimisation: Adjust tenure to find the sweet spot between a manageable EMI and minimum total interest paid.
FAQ
How is EMI calculated?
EMI is calculated using the formula EMI = P × r × (1 + r)^n / ((1 + r)^n − 1), where P is the principal loan amount, r is the monthly interest rate (annual rate divided by 12 and by 100), and n is the total number of monthly payments. Our calculator handles this for you and also shows the full month-by-month breakdown.
Does a longer tenure reduce my EMI?
Yes — a longer tenure spreads the principal across more months, so each EMI is smaller. But total interest paid rises sharply. On a ₹50 lakh loan at 8.5%, a 10-year tenure costs ₹24 lakh in interest while a 20-year tenure costs ₹54 lakh. The EMI is lower but you pay more than twice as much interest overall.
Can I prepay my loan to reduce interest?
Yes. RBI mandates that banks cannot charge prepayment penalties on floating-rate retail loans. Even one extra EMI per year can shave 3-5 years off a 20-year home loan. Part-prepayment reduces the outstanding principal, and future EMIs apply to a smaller balance so interest drops.
Is EMI different from a loan installment?
EMI is a specific kind of installment where each monthly payment is the same fixed amount throughout the loan tenure. Some loans use reducing installments where the amount drops over time — but EMI is the standard for home, car, personal and bike loans in India.
Does the EMI calculator store my financial data?
No. All calculations run entirely in your browser. Your loan details are never sent to a server or stored after you close the page.
How does a floating interest rate affect my EMI?
With a floating rate, your EMI may change when the bank's benchmark rate changes. This calculator uses a fixed rate; if your rate changes, re-enter the new rate to recalculate your EMI.
By the Numbers
- India's total outstanding home loan portfolio crossed ₹27 lakh crore in 2024 (Reserve Bank of India data)
- The average home loan tenure in India is approximately 15–20 years (National Housing Bank)
- Banking norms recommend total EMIs should not exceed 40–50% of monthly gross income (standard RBI guidelines)
- A 1% change in interest rate on a ₹50 lakh, 20-year loan shifts the EMI by approximately ₹3,200