About the EMI Calculator
This EMI calculator works out the equated monthly instalment (EMI) for any reducing-balance loan in India — home loans, car loans, personal loans, education loans and two-wheeler loans. Enter the loan amount, the annual interest rate quoted by the bank or NBFC and the tenure, and it shows the fixed amount you will pay each month, how much of the total goes to interest, and a year-by-year breakdown of principal and interest.
It is useful before you apply, when comparing offers from different lenders, or when deciding between a shorter tenure with a higher EMI and a longer tenure with more interest. Many lenders also charge a processing fee as a percentage of the loan; add it to see the upfront cost and the cash you will actually receive.
The calculation assumes a fixed rate for the whole tenure and interest charged monthly on the outstanding balance, which is how most Indian banks compute EMIs. Floating-rate loans will change when the lender resets its benchmark rate, so recalculate whenever your rate moves.
With the default inputs, the monthly emi is ₹21,493.90. Change any value above to recalculate instantly.
How to use the emi calculator
- 1Enter the loan amount you want to borrow.
- 2Enter the annual interest rate offered by the lender.
- 3Set the tenure in years and any extra months.
- 4Add the processing fee percentage if the lender charges one.
- 5Read your EMI and review the year-wise schedule to see how the balance falls.
Formula and method
The EMI formula spreads the loan into n equal monthly instalments. P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the tenure in months. Each month, interest is charged on the outstanding balance and the rest of the EMI reduces principal, so early EMIs are mostly interest and later EMIs are mostly principal.
Total payment is EMI × n and total interest is total payment minus P. The processing fee is shown separately as a one-time upfront cost (fee % × P); GST on the fee is not included.
- EMI
- Equated monthly instalment
- P
- Principal (loan amount)
- r
- Monthly interest rate = annual rate ÷ 12 ÷ 100
- n
- Tenure in months
Worked examples
₹10 lakh personal loan at 10.5% for 5 years
Borrowing ₹10,00,000 at 10.5% for 60 months gives an EMI of about ₹21,493. Over five years you pay about ₹12.9 lakh in total, of which about ₹2.9 lakh is interest. The 1% processing fee is ₹10,000.
₹50 lakh home loan at 8.5% for 20 years
A ₹50 lakh home loan at 8.5% over 240 months has an EMI of about ₹43,391. Over 20 years total interest is about ₹54.1 lakh — more than the amount borrowed — which is why prepaying early in the tenure saves so much.
₹8 lakh car loan at 9% for 7 years
An ₹8 lakh car loan over 84 months at 9% costs about ₹12,871 per month and roughly ₹2.81 lakh in interest over the full tenure.
Frequently asked questions
What is EMI?+
EMI stands for equated monthly instalment — the fixed amount you pay the lender every month until the loan is repaid. Each EMI contains an interest part and a principal part; the split changes every month but the total stays the same on a fixed-rate loan.
How is EMI calculated?+
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the principal, r the monthly rate (annual rate ÷ 12 ÷ 100) and n the number of months. This calculator applies that formula and builds the full reducing-balance schedule.
Is a longer tenure better?+
A longer tenure lowers the EMI but increases total interest substantially. Choose the shortest tenure whose EMI fits comfortably in your budget — many lenders like EMIs to stay under about 40–50% of net monthly income.
Does prepayment reduce EMI or tenure?+
Most banks let you choose. Keeping the EMI the same and reducing the tenure usually saves more interest. Floating-rate home loans to individuals generally carry no prepayment penalty under RBI rules, but check your loan agreement.
Is the processing fee included in the EMI?+
No. The processing fee is usually deducted from the disbursed amount or paid upfront, and GST is charged on it. It raises the effective cost of the loan, which is reflected in the APR rather than in the EMI.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.
Sources