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EMI Calculator

Written by Sagar Kumar
Last updated: 21 August 2026

Planning a home loan, car loan or personal loan? This free EMI calculator instantly shows your monthly instalment (EMI), the total interest you will pay, and the overall cost of the loan — so you can compare offers and borrow smartly.

🏠 EMI Calculator

Monthly EMI-
Total Payment-
Total Interest-
Principal-

How to Use This EMI Calculator

  1. Enter the loan amount you want to borrow (e.g. ₹5,00,000).
  2. Enter the yearly interest rate offered by the bank (e.g. 8.5%).
  3. Choose the loan tenure in years or months and tap Calculate.

Formula

EMI = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1), where P = loan amount, r = monthly interest rate, n = number of months.

Example: For a ₹5,00,000 loan at 8.5% for 5 years: EMI ≈ ₹10,258 per month, total interest ≈ ₹1,15,486, total payment ≈ ₹6,15,486.

Frequently Asked Questions

▶ What is EMI?
EMI (Equated Monthly Instalment) is the fixed amount you pay to the bank every month until your loan is fully repaid. It includes both principal and interest.
▶ How can I reduce my EMI?
You can reduce EMI by choosing a longer tenure, negotiating a lower interest rate, or making a larger down payment. Note that a longer tenure increases total interest paid.
▶ Does this work for home, car and personal loans?
Yes. The EMI formula is the same for all reducing-balance loans — home loans, car loans, personal loans and education loans.
▶ Is a shorter tenure better?
A shorter tenure means higher monthly EMI but much lower total interest. If you can afford the EMI, a shorter tenure saves money overall.

📖 EMI को और अच्छे से समझें

EMI कैसे कम करें, कौन-सा तरीका बेहतर है — पूरी जानकारी पढ़ें:

📗 EMI कैसे कम करें (हिंदी)📘 Reduce Your EMI (English)

Worked example with real numbers

A ₹30,00,000 home loan at 8.5% over 20 years:

ItemAmount
Loan amount₹30,00,000
Monthly EMI₹26,035
Total paid over 20 years₹62,48,400
Total interest₹32,48,400

You repay more than double what you borrowed. That's normal for a long-tenure loan, and it's exactly why the tenure decision matters more than most borrowers realise.

How tenure changes everything

Same ₹30,00,000 at 8.5%, different tenures:

TenureMonthly EMITotal interestExtra vs 10 yrs
10 years₹37,190₹14,62,800—
15 years₹29,540₹23,17,200+₹8,54,400
20 years₹26,035₹32,48,400+₹17,85,600
25 years₹24,160₹42,48,000+₹27,85,200
30 years₹23,067₹53,04,120+₹38,41,320

Going from 20 to 30 years saves ₹2,968 a month but costs an extra ₹20.5 lakh in interest. Stretching the tenure buys short-term comfort at a very high long-term price.

What the interest rate does

₹30,00,000 over 20 years:

RateEMITotal interest
8.0%₹25,093₹30,22,320
8.5%₹26,035₹32,48,400
9.0%₹26,992₹34,78,080
9.5%₹27,964₹37,11,360
10.0%₹28,951₹39,48,240

Half a percentage point is worth roughly ₹2.3 lakh over the life of this loan. It is genuinely worth spending an afternoon comparing lenders, and worth asking your existing bank to match a better offer before you refinance.

Prepayment: the biggest lever you have

Prepaying early has an outsized effect, because early EMIs are almost entirely interest. On the ₹30 lakh loan above, in year one about ₹21,000 of each ₹26,035 EMI goes to interest and only ₹5,000 to principal.

A single ₹2,00,000 prepayment in year two, with the tenure kept the same, can cut roughly ₹6–7 lakh of total interest and shorten the loan by around two years.

Reduce EMI or reduce tenure? After a prepayment your bank will ask. Reducing tenure almost always saves more interest; reducing EMI helps monthly cash flow. We've worked through the actual numbers in Reduce EMI or Tenure and in Hindi at EMI या टेन्योर कम करें.

Floating-rate home loans to individuals carry no prepayment penalty under RBI rules. Fixed-rate loans and most personal loans usually do — check before you plan.

Common mistakes

More questions

▶ How is EMI calculated?
EMI = P × r × (1+r)ⁿ / ((1+r)ⁿ − 1), where P is the loan amount, r the monthly interest rate (annual rate divided by 12 and by 100) and n the number of months.
▶ Does prepayment reduce EMI or tenure?
Either — your bank will ask which you prefer. Reducing tenure saves considerably more interest; reducing EMI eases monthly cash flow. Reducing tenure is usually the better financial choice.
▶ Is there a penalty for prepaying a home loan?
Under RBI rules, floating-rate home loans to individuals carry no prepayment penalty. Fixed-rate loans and many personal loans do, so check your agreement.
▶ Why is most of my early EMI going to interest?
Interest is charged on the outstanding balance, which is highest at the start. As the balance falls, the principal share of each EMI rises steadily.
▶ What is a flat rate loan?
One where interest is charged on the full original amount for the entire tenure, rather than the reducing balance. A flat rate roughly doubles when converted to an equivalent reducing-balance rate.
▶ Can I get a home loan tax benefit?
Under the old regime, principal repayment qualifies under Section 80C and interest under Section 24(b), subject to limits. The new regime removes most of these for self-occupied property.

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Official sources: Reserve Bank of India