Use this free EMI calculator to find the monthly installment for any loan - home, car, personal or education. Enter the loan amount, interest rate, and tenure to see your EMI, total interest and a complete amortization schedule instantly.
Home loan rates are usually 8% to 11% in India.
Monthly EMI
₹43,391
Total interest
₹54,13,879
Total payable
₹1,04,13,879
You borrow ₹50,00,000 at 8.5% for 20 years. Each month you pay ₹43,391 across 240 instalments, and 52% of everything you repay is interest.
What if…
For illustration only. The final EMI sanctioned by your bank may vary by 1–2% due to processing fees, GST, and prevailing benchmark rates. Always confirm the offer letter from the lender.
Monthly EMI is 43,391 rupees.
Parte do conteúdo ainda aparece em inglês.
An Equated Monthly Installment (EMI) is the single number that decides whether a loan fits into your monthly budget. For a typical Indian household, the home or car EMI is the second-largest fixed cost after rent or school fees, and once it is locked in, it follows you for five, ten, even thirty years. A 0.5% difference in interest rate on a ₹50 lakh, 20-year home loan is roughly ₹3 lakh in extra interest paid over the life of the loan - small numbers compound into very real money.
This calculator uses the standard monthly reducing balance formula that every regulated Indian bank - SBI, HDFC, ICICI, Axis, Kotak, BoB, PNB and the rest - uses to compute your EMI. The output you see here will match the EMI quoted on your sanction letter to within a rupee or two, with small differences typically explained by processing fees baked into the principal or by your bank charging a partial first month. Where it differs more meaningfully is on flat-rate loans (some used-car and gold loans) - those use a fundamentally different formula and we have a separate simple-interest calculator for that.
Enter the loan amount (principal) you plan to borrow.
Enter the annual interest rate offered by the bank, exactly as stated on the sanction letter.
Enter the loan tenure in months or years - banks express tenure both ways.
View your monthly EMI, total interest, and total payable amount over the full tenure.
Scroll down for the year-wise amortization schedule showing how each EMI splits between principal and interest.
Use the chart to see how the principal-to-interest ratio shifts over the life of the loan - useful for prepayment timing decisions.
EMI is a fixed monthly payment that includes both principal and interest. In the early months, most of your EMI goes toward interest because the outstanding principal is large; as time passes the principal portion grows and the interest portion shrinks. By the final EMI, almost the entire amount goes toward principal. This split is exactly what the amortization schedule shows.
EMI = P × r × (1 + r)^n / ((1 + r)^n − 1)
The EMI formula is derived from the present-value formula for an annuity. The lender treats your loan as a stream of equal future payments, discounts each payment back to today using the monthly interest rate, and sets the sum of those discounted payments equal to the principal. Solving for the payment gives the formula above. The reason the EMI looks slightly higher than (principal + total interest) ÷ tenure is because of the time value of money - each rupee paid back later is worth less than a rupee paid back today.
Indian banks use monthly reducing balance: at the start of each month, the bank computes interest on the current outstanding principal at the monthly rate (annual rate ÷ 12), adds it to your principal balance, then subtracts your EMI. The leftover principal becomes the starting balance for the next month. This is mathematically identical to the closed-form formula above, but the amortization table makes the mechanics visible. Some non-banking lenders use daily reducing balance, which produces an EMI that's a few rupees lower; the difference is usually less than 0.1% over the life of the loan.
Two important real-world adjustments the formula does not capture: processing fees and GST on those fees. Most banks charge a processing fee of 0.25% to 1% of the loan amount plus 18% GST on top. If the bank deducts the fee from the disbursement, you receive less than the principal but pay EMI on the full principal - your effective rate is slightly higher than the headline rate. The APR calculator on this site shows that effective rate in apples-to-apples form across lenders.
Floating-rate loans add another layer. The bank quotes a rate today (typically as 'repo rate + spread'), but the rate resets every quarter or year as the RBI repo rate changes. When the rate rises, banks usually keep the EMI fixed and extend your tenure rather than increase the EMI immediately - a quirk worth checking on your sanction letter. The numbers from this calculator assume a fixed rate; recompute when your bank revises the rate.
Plug in P = ₹50,00,000, r = 8.5/12/100 = 0.7083%, n = 240 months. The EMI works out to about ₹43,391. Over 20 years you pay ₹1,04,13,879 - of which ₹54,13,879 is interest. That means you pay back more than double the loan amount, with the interest portion dominating the first eight years. If you can shorten the tenure to 15 years instead, the EMI rises to ₹49,237 but the total interest drops to ₹38,62,650 - saving you over ₹15 lakh.
P = ₹8,00,000, r = 9.5/12/100 ≈ 0.7917%, n = 60 months gives EMI of ₹16,793. Total payable: ₹10,07,580 with ₹2,07,580 in interest. Even on a relatively small loan, the interest works out to over ₹40,000 per year for the first two years. Most banks will let you prepay a car loan after the first year with little or no penalty - knocking off two months of EMI as a lump-sum prepayment after year 2 saves about ₹15,000 in interest over the remaining tenure.
P = ₹3,00,000, r = 14/12/100 ≈ 1.1667%, n = 36 months yields EMI of ₹10,253. Total payable: ₹3,69,108 - interest of ₹69,108 on a 3-year loan. Personal loans look small but interest at 14% adds up fast. If you have a credit card balance at 36-42% APR, consolidating it into a personal loan at 14% via the debt consolidation calculator on this site is one of the cleanest financial wins available.
EMI stands for Equated Monthly Installment. It is the fixed monthly payment a borrower pays to a lender to repay a loan. Each EMI consists of two parts - principal repayment and interest - and the split between the two changes month by month, with interest dominating early in the loan and principal dominating later.
EMI is calculated using the formula EMI = P × r × (1 + r)^n / ((1 + r)^n − 1), where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the tenure in months. This is the standard monthly reducing balance formula used by every regulated Indian bank.
Yes. Most banks in India allow prepayment of personal, home and car loans. You can either reduce your monthly EMI or shorten the tenure. Reducing tenure usually saves more interest in absolute terms, while reducing EMI improves monthly cash flow. Always check prepayment fees - RBI has banned them on floating-rate retail loans, but they may still apply on fixed-rate or business loans.
On a fixed-rate loan, yes - the EMI stays the same every month for the entire tenure. On a floating-rate loan, the EMI may change when the bank revises its interest rate. Most Indian banks keep the EMI constant and adjust the tenure when rates change, but you can usually request the opposite (constant tenure, varying EMI) by writing to your bank.
A longer tenure lowers your monthly EMI but increases the total interest paid. Doubling the tenure roughly halves the EMI but more than doubles the interest. A shorter tenure has a higher EMI but saves significant interest in the long run. The amortization schedule below the calculator makes this trade-off explicit.
Yes. The formula is the same one used by HDFC, SBI, ICICI, Axis Bank and most other Indian lenders. The final disbursed EMI may differ slightly due to processing fees that get added to the principal, GST on those fees, and a partial first-month interest charge - but the core EMI number from this calculator will be within ±₹50 of what your bank computes for the same principal, rate and tenure.
If your home loan rate is around 8.5% and you can earn more than that post-tax in equity mutual funds (historically averaging 11-13%), investing wins on expected return. But equity is volatile and prepayment is a guaranteed 8.5% saving - a much better risk-adjusted return for most people. Many planners recommend a 50:50 split: prepay aggressively in the first half of the loan, and invest the surplus in the second half once the principal is largely paid down.
This calculator computes the bare EMI on the principal you enter. It does not automatically add processing fees, GST on those fees, or stamp duty, since those depend on your specific bank and the loan type. To get the all-in cost of borrowing, use the APR calculator on this site - it includes processing fees in the effective rate.
Indian financial products - home loans, fixed deposits, mutual funds, NPS, insurance - each carry their own quirks: monthly reducing balance vs flat-rate interest, quarterly vs monthly compounding, indexation on capital gains, the choice between the old and new tax regime. We design every finance calculator to use the formula that an Indian bank, AMC, or insurer would actually use, and to surface the assumptions in plain English so you can audit the result against your own statement.
Use this calculator alongside the EMI, SIP and inflation calculators to plan your money holistically. A standalone EMI number means little until you compare it with your in-hand salary, your existing debt-to-income ratio, and the impact of inflation on the real cost of the loan. The related-tool grid below makes it one click to chain these analyses together.
The EMI Calculator is part of the Finance suite on Online Calculator Tools, alongside 6 related calculators. All tools share the same UI patterns, the same privacy-first rendering (nothing is sent to a server), and the same commitment to showing the formula and assumptions behind every result.
