EMI Calculator

The EMI Calculator works out the fixed monthly instalment on a loan from three inputs: the amount borrowed, the annual interest rate and the tenure in years. It also shows the total interest and the total you will repay, which are the figures that really separate one loan offer from another. It suits home, car, two-wheeler, education and personal loans repaid in equal monthly instalments on a reducing balance.

Inputs and results

• Loan amount: the principal you will actually receive, in rupees.
• Interest rate (% p.a.): the annual rate quoted by the lender, such as 9 or 10.75.
• Tenure (years): decimals are fine and are rounded to whole months, so 2.5 years becomes 30 instalments and 1.3 years becomes 16.

Press Calculate EMI to see the Monthly EMI, the Principal, Total interest, Total payment and the tenure in months. A rate of 0 simply divides the amount by the number of months.

The formula with a worked example

Lenders use EMI = P × r × (1 + r)^n ÷ [(1 + r)^n − 1], where P is the loan amount, r the monthly rate (annual rate ÷ 12 ÷ 100) and n the number of months. Take a home loan of ₹20,00,000 at 9% for 15 years:

1. r = 9 ÷ 12 ÷ 100 = 0.0075, and n = 15 × 12 = 180.
2. (1.0075)^180 = 3.8380.
3. EMI = 20,00,000 × 0.0075 × 3.8380 ÷ (3.8380 − 1) = ₹20,285.33.
4. Total payment = 20,285.33 × 180 = ₹36,51,359.70, so total interest = ₹16,51,359.70.

The split inside each EMI changes over time. In month one, interest is 20,00,000 × 0.0075 = ₹15,000, so only ₹5,285.33 of the first EMI reduces the principal. As the balance falls, the interest share shrinks and the principal share grows, which is why prepayments made early in a loan save the most interest.

Tenure versus total interest

The same ₹20 lakh at 9%, run at three tenures:

Stretching from 15 to 20 years lowers the EMI by ₹2,290.81 a month but adds ₹6,67,324.89 of interest. Going from 15 down to 10 years costs ₹5,049.82 more each month and saves ₹6,11,141.13. A practical middle path is to take the tenure that keeps the EMI comfortable, then prepay whenever a bonus or increment allows.

The rate matters just as much. A ₹30 lakh loan over 20 years costs ₹25,093.20 a month at 8% and ₹26,034.70 at 8.5%. That half-point gap is ₹941.50 a month, or ₹2,25,958.78 over the full term, which is why it is worth asking for a rate review when your credit score improves, or comparing a balance transfer.

Checks before you sign

• Affordability: start from take-home pay, not gross salary. The in-hand salary calculator gives the monthly figure the EMI has to come out of, along with rent, school fees, insurance and savings.
• Prepayment: RBI rules bar regulated lenders from charging foreclosure or prepayment penalties on floating-rate term loans taken by individuals for non-business purposes. Fixed-rate loans can carry a charge, so read the sanction letter.
• Rate resets: on a floating-rate loan the rate is reset when the benchmark moves. Under RBI's 2023 framework for EMI-based floating-rate loans, the lender must inform you of the change, let you choose between a higher EMI and a longer tenure, and offer a switch to a fixed rate as per its board-approved policy.
• Tax: interest on a loan for a self-occupied house is deductible up to ₹2 lakh a year only under the old tax regime. The income tax calculator shows whether that deduction makes the old regime worth choosing.

What the result leaves out

The figures are an estimate of the loan itself, not financial advice. They do not include processing fees, the GST charged on those fees, loan insurance premiums or stamp duty. The calculator also assumes one rate for the whole tenure, while a floating rate will move. Your bank's first EMI may differ slightly if the loan is disbursed partway through a month, because interest for the extra days (often called broken-period or pre-EMI interest) is charged separately. Finally, the tool gives totals only, without a month-by-month repayment schedule, so ask the lender for the amortisation schedule before signing.