This EMI calculator tells you the fixed monthly instalment for a loan, the total interest you will pay and how the balance falls year by year. It works for home, car, personal, education, business and gold loans, because every bank in India uses the same reducing balance formula for a standard EMI.
Fill in what you borrow, the rate per year and the number of years, plus any processing fee. The repayment table below the result shows how much of each year's payments goes to interest and how much cuts the loan.
At a glance
- FormulaEMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)
- rMonthly rate: yearly rate ÷ 12 ÷ 100
- nNumber of monthly instalments
- Example₹10 lakh at 10% for 5 years: EMI ₹21,247
- Total interest in that example₹2,74,823
- MethodReducing balance, interest on what you still owe
How the EMI calculator works out your instalment
An EMI, or equated monthly instalment, is the same amount every month. Each EMI pays that month's interest on the balance still owed, and the rest reduces the principal. Early in the loan the balance is large, so most of the EMI is interest. Near the end, most of it is principal.
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)
Take a ₹10,00,000 loan at 10% a year for 5 years. The monthly rate r is 10 ÷ 12 ÷ 100 = 0.008333 and n is 60. Putting these in gives an EMI of ₹21,247. Over 60 months you pay ₹12,74,823, so the interest is ₹2,74,823. The calculator above does this in a blink, and the loan calculator table shows the split for every year.
What tenure does to your EMI and interest
A longer tenure lowers the EMI but raises the total interest. Here is the same ₹10 lakh at 10%:
| Tenure | Monthly EMI | Total interest |
|---|---|---|
| 3 years | ₹32,267 | ₹1,61,619 |
| 5 years | ₹21,247 | ₹2,74,823 |
| 7 years | ₹16,601 | ₹3,94,499 |
Stretching from 3 to 7 years cuts the EMI almost in half but costs ₹2.3 lakh more in interest. Pick the shortest tenure whose EMI you can pay comfortably even in a bad month. You can always prepay later; use the prepayment calculator to see the saving.
What a 1% higher rate costs
On ₹10 lakh for 5 years, moving from 10% to 11% raises the EMI from ₹21,247 to ₹21,742. That is only ₹495 a month, but ₹29,722 over the loan. On a 20 year home loan the gap is far larger, because interest has longer to work. A loan interest calculator like this one makes the comparison concrete before you sign.
When two lenders quote different rates and fees, compare the total amount payable, not the EMI alone. A lower rate with a 2% processing fee can cost more than a slightly higher rate with no fee on a short loan.
EMI calculator for each loan type
The formula is the same, but each loan comes with its own rules on tenure, down payment, prepayment and tax. These pages have the calculator set to typical figures for that loan, plus the details that matter:
| Loan | Typical tenure | Calculator |
|---|---|---|
| Home loan | Up to 30 years | Home loan EMI calculator |
| Plot or land loan | Up to 15 to 20 years | Plot loan EMI calculator |
| Loan against property | Up to 15 years | LAP EMI calculator |
| New car | 1 to 7 years | Car loan EMI calculator |
| Used car | 1 to 5 years | Used car loan EMI calculator |
| Two wheeler | 1 to 4 years | Bike EMI calculator |
| Personal loan | 1 to 5 years | Personal loan EMI calculator |
| Education | Up to 15 years after the course | Education loan EMI calculator |
| Business | 1 to 5 years | Business loan EMI calculator |
| Mudra | Up to 5 years | Mudra loan EMI calculator |
| Gold loan | Up to 12 months for bullet loans | Gold loan calculator |
| Tractor | Up to 5 to 7 years | Tractor loan EMI calculator |
| Commercial vehicle | Up to 5 years | Commercial vehicle loan EMI calculator |
| Rooftop solar | Up to 10 years | Solar loan calculator |
| Mobile phone | 3 to 24 months | Mobile EMI calculator |
| Credit card EMI | 3 to 24 months | Credit card EMI calculator |
Before you borrow: eligibility, down payment and fees
Lenders first check how much you can afford. Most cap all your EMIs together at 40 to 60% of take home pay. The loan eligibility calculator and the home loan eligibility calculator show the limit for your income.
For vehicles and homes, a bigger down payment cuts both the EMI and the interest. The down payment calculator lays out 10% to 40% side by side. Shopping on EMI? The no cost EMI calculator shows the GST and fees hidden in those offers.
Fees to ask about:
- Processing fee, usually 0.5% to 3% plus 18% GST.
- Late payment charges and bounce charges.
- Prepayment or foreclosure charges on fixed rate and business loans.
- Insurance bundled into the loan amount.
Repaying early and reading your schedule
The loan repayment calculator table above shows the yearly split. For the full month by month view, with a CSV you can open in any spreadsheet, use the loan amortization calculator.
Paying extra early in the loan saves the most interest, because it cuts the balance while interest is heaviest. See the saving on the prepayment calculator, and the payoff figure for closing today on the foreclosure calculator. Under RBI rules, banks and NBFCs cannot charge a prepayment penalty on floating rate loans taken by individuals for non business use.
Flat rate, simple interest and other EMI types
Some lenders quote a flat rate, where interest is charged on the full loan for the whole tenure. A 10% flat rate on a 3 year loan is close to an 18% reducing rate. Check any flat quote with the flat vs reducing calculator.
Staff loans and some cooperative loans use simple interest on the falling balance, collected after the principal. The simple interest EMI calculator handles that. Half yearly or quarterly EMIs, used in some farm loans, follow the same formula with r and n set per period instead of per month.
Common mistakes with EMI math
- Using the yearly rate as the monthly rate. 12% a year is 1% a month, not 12%.
- Ignoring the processing fee. On a short personal loan it can add a full point to the real cost.
- Comparing EMIs across different tenures. Compare total interest instead.
- Forgetting broken period interest. If the loan starts mid month, the first EMI may carry a few extra days of interest.
- Assuming the rate is fixed. Most home loans are floating. When the rate moves, the bank usually changes the tenure first and the EMI second.
This EMI calculator gives an estimate. Your loan agreement and the lender's schedule are final. For advice on whether to borrow, talk to the lender or a financial adviser.
Frequently asked questions
How is EMI calculated?
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan, r the monthly rate (yearly rate ÷ 1,200) and n the number of months. A ₹10 lakh loan at 10% for 5 years gives ₹21,247 a month.
Can I use this EMI calculator in months?
Yes. The tenure box takes years in half year steps; for a tenure in months, divide by 12. For 18 months type 1.5. The monthly schedule page lets you see every month separately.
Does a lower EMI mean a cheaper loan?
No. A lower EMI usually comes from a longer tenure, which raises total interest. Compare the total amount payable shown by the calculator.
Why does my bank's EMI differ by a few rupees?
Banks round the EMI, may charge broken period interest for the first month, and some calculate interest on daily balances. The difference is usually tiny.
Is the processing fee included in the EMI?
Usually not. The fee plus 18% GST is taken from the loan amount or paid up front. Add it in the calculator to see the full cost.
What happens to my EMI if the interest rate rises?
On a floating rate loan the bank usually extends the tenure first and keeps the EMI the same. If the tenure cannot stretch further, the EMI goes up. You can ask the bank to raise the EMI instead to limit extra interest.