EMI Calculator

Enter the loan amount, the yearly interest rate and the tenure. The calculator shows the monthly EMI, the total interest over the loan and how much of what you pay back is principal.

How to use the EMI calculator

Each input has a slider and a box you can type into. The result updates as you change any of them.

1. Loan amount: the amount the bank will disburse, not the price of the property or car. For a ₹60 lakh flat with a ₹12 lakh down payment, enter ₹48 lakh. Add any processing fee or insurance premium that the lender is adding to the loan.
2. Interest rate: the yearly rate in your sanction letter. For a floating-rate home loan this is the lender’s benchmark (usually the repo-linked rate) plus its spread.
3. Tenure: the number of years you will pay. Home loans run up to 30 years, car loans usually 5 to 7 years and personal loans 1 to 5 years.

You get the EMI, the principal, the total interest and the total you will pay back, with a bar showing how that total splits between principal and interest.

How EMI is calculated

Banks and NBFCs in India use the reducing-balance formula for home, car, personal and education loans:

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

P is the loan amount, r is the monthly rate (yearly rate ÷ 12 ÷ 100) and n is the number of monthly instalments. The formula gives the one EMI that clears the loan exactly on the last due date.

With the defaults, ₹25 lakh at 8.5% for 20 years:

• Monthly rate: 8.5 ÷ 12 ÷ 100 = 0.0070833
• Number of EMIs: 240
• EMI: ₹21,696
• Total paid over 20 years: about ₹52.07 lakh
• Total interest: about ₹27.07 lakh

In the first month, interest is ₹25,00,000 × 0.0070833 = ₹17,708. Only ₹3,987 of the first EMI goes to principal. Each month the balance drops a little, so the interest part shrinks and the principal part grows. After five years you still owe about ₹22.03 lakh, so less than 12% of the loan is repaid in the first quarter of the tenure. The loan amortization schedule shows every EMI.

How tenure changes the EMI and the interest

Tenure	EMI	Total interest	Total paid
15 years	₹24,618	₹19.31 lakh	₹44.31 lakh
20 years	₹21,696	₹27.07 lakh	₹52.07 lakh
30 years	₹19,223	₹44.20 lakh	₹69.20 lakh

Going from 20 to 30 years lowers the EMI by about ₹2,473 a month but adds more than ₹17 lakh of interest. On a 30-year loan at 8.5%, you pay back almost 2.8 times what you borrowed. A longer tenure is useful for getting a loan sanctioned and keeping the EMI comfortable, but plan to prepay when you can. The loan prepayment calculator shows what a lump sum saves.

How the rate changes the EMI

A one-point difference adds up. The same ₹25 lakh over 20 years at 9.5% has an EMI of ₹23,303, which is ₹1,608 more a month, and about ₹3.86 lakh more interest. Floating rates in India move with the RBI repo rate, so your EMI or tenure can change during the loan. When rates rise, most banks extend the tenure first and keep the EMI the same, which can quietly add years to the loan. Check your statement after every rate change.

If another lender offers a lower rate, the balance transfer calculator shows whether switching is worth the fees.

Car and personal loans

The formula is the same for any loan with a fixed EMI:

• A ₹8 lakh car loan at 9% for 5 years has an EMI of ₹16,607 and total interest of about ₹1.96 lakh.
• A ₹5 lakh personal loan at 12% for 3 years has an EMI of ₹16,607 and total interest of about ₹97,858.

Some two-wheeler, consumer durable and used-car loans are quoted at a flat rate, which looks much lower than it is. Convert it with the flat vs reducing rate calculator before comparing.

Comparing two loan offers

Suppose one bank offers ₹25 lakh at 8.5% with a 0.5% processing fee and another offers 8.35% with a flat ₹25,000 fee. Run both through the calculator at the same tenure. Over 20 years, the 0.15% rate difference saves roughly ₹57,000 of interest, which is far more than the ₹12,500 gap in fees. But if you expect to prepay heavily or sell within five years, most of that interest saving never happens, and the cheaper fee may matter more. Compare the offers over the period you actually expect to keep the loan, and read the key fact statement for any charges the headline rate leaves out, such as a fee to switch from fixed to floating.

What the EMI does not include

The EMI covers principal and interest only. Other costs of a loan are:

• Processing fee, usually 0.25% to 1% of the loan plus GST, deducted at disbursement or paid upfront.
• Loan insurance, which some lenders push and add to the loan amount. It is optional; you can buy term cover separately.
• Pre-EMI interest on an under-construction property, charged on the amount disbursed so far until full EMIs begin.
• Stamp duty, registration, legal and valuation charges on a home loan.

Why your bank’s EMI may differ slightly

• Some lenders round the EMI up to the next rupee or ten rupees.
• The first EMI may include broken-period interest from the disbursement date to the EMI date.
• Under-construction home loans have pre-EMI interest before the full EMI starts.
• Floating-rate loans are recalculated each time the benchmark changes.

If the difference is more than a few rupees, check that you used the exact disbursed amount and the current rate in your latest statement.

Tax benefits on a home loan

Under the old tax regime, interest on a home loan for a self-occupied house can be deducted up to ₹2 lakh a year under Section 24(b), and principal repayment counts toward the ₹1.5 lakh limit under Section 80C. The new tax regime, which is the default, does not allow these deductions for a self-occupied home. The yearly interest and principal figures in the amortization schedule help you estimate the deduction if you use the old regime. Tax rules change, so check the current position with your tax adviser.

How much EMI can you afford?

Lenders usually cap all your EMIs together at 40% to 55% of net monthly income, a limit called FOIR. A comfortable level is lower, often 30% to 40%, leaving room for savings and emergencies. The loan eligibility calculator works out the largest loan your income supports.

Mistakes to avoid

• Entering the property price instead of the loan amount.
• Comparing two offers with different tenures by their EMI alone. Compare total interest at the same tenure.
• Ignoring the processing fee and insurance that are added to the loan.
• Assuming a floating rate will stay where it is for 20 years.

Before signing, ask for the key fact statement, which RBI now requires lenders to give for retail loans. It lists the rate, all fees, the APR and the repayment schedule in a standard format, which makes offers from different lenders easy to compare line by line.

The calculator runs in your browser. Nothing you enter is sent or stored.

Frequently asked questions

What is the EMI for a ₹25 lakh home loan?

At 8.5% for 20 years, the EMI is about ₹21,696. At 15 years it is about ₹24,618 and at 30 years about ₹19,223. Every 0.5% change in the rate moves the 20-year EMI by roughly ₹800. Enter your lender’s exact rate to get your figure.

Is the EMI the same for the whole loan?

For a fixed-rate loan, yes. For a floating-rate loan, the EMI or the tenure changes whenever the benchmark rate changes. Most banks adjust the tenure first and change the EMI only when the tenure would cross the maximum allowed. You can ask the bank to change the EMI instead.

Why is most of my early EMI interest?

Interest is charged on the outstanding balance, and at the start you owe the whole loan. On ₹25 lakh at 8.5%, the first month’s interest is ₹17,708 out of an EMI of ₹21,696. The principal share grows every month. On a 20-year loan at this rate, principal overtakes interest only around year 12.

Does a shorter tenure always save money?

It always saves interest, because the loan is outstanding for less time. On ₹25 lakh at 8.5%, a 15-year tenure saves about ₹7.8 lakh of interest compared with 20 years. The cost is a higher EMI, about ₹2,900 more each month. Choose the shortest tenure whose EMI you can pay comfortably.

Can I use this for a gold loan or overdraft?

Not directly. Many gold loans charge interest monthly with the principal repaid at the end, and overdraft or home loan linked accounts charge interest on the daily balance. Those do not have a fixed EMI. The calculator fits any loan with equal monthly instalments, such as home, car, personal and education loans.

Should I use the interest rate or the APR?

Use the yearly interest rate in your sanction letter. Indian lenders also disclose an annual percentage rate in the key fact statement, which includes fees. The APR is useful for comparing offers, but the EMI is calculated on the interest rate alone.