EMI Calculator
Calculate your Equated Monthly Installments for loans with ease.
Quick Tip
Enter the loan amount you expect to borrow.
About This Tool
Why use EMI Calculator?
An EMI is the fixed monthly payment that clears a loan over its term. This calculator uses the standard reducing-balance formula EMI = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1), where P is the principal, r the monthly interest rate and n the number of months, and shows the EMI, the total interest and the total repayment.
On ₹10,00,000 at 8.5% for 20 years the EMI is about ₹8,678, and the total interest over the term comes to roughly ₹10.8 lakh — more than the amount borrowed. Shortening the tenure is what cuts that: the same loan over 10 years costs about ₹12,399 a month but less than half the interest. Processing fees, insurance and stamp duty are not included here.
Key Benefits
Reducing balance, as banks calculate it
Interest is charged on the outstanding balance each month, which is how retail loans in India work.
Interest share shown
The split between principal and interest makes the real cost of a long tenure obvious.
Years or months
Enter the tenure in whichever unit your lender quoted.
How to use EMI Calculator
- 1
Enter the loan amount you expect to borrow.
- 2
Enter the annual interest rate from your sanction letter or quote.
- 3
Set the tenure in years or months.
- 4
Compare the EMI with the total interest, then try a shorter tenure to see the saving.
Best use cases
Check the EMI before applying for a home, car or personal loan.
Compare two offers with different rates and tenures.
See how much interest a longer tenure adds.
Work out the loan amount that fits an EMI you can afford.
EMI Calculator FAQs
How is EMI calculated?
EMI = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1). The monthly rate r is the annual rate divided by 12 and by 100, and n is the tenure in months.
Does a longer tenure save money?
It lowers the monthly payment but raises the total interest, often substantially. Choose the shortest tenure whose EMI you can comfortably sustain.
What happens when the interest rate changes?
Most home loans in India are floating-rate and linked to an external benchmark. When the rate moves, lenders usually keep the EMI and adjust the tenure, though you can ask for the opposite.
Can I reduce my EMI by prepaying?
Yes. A part-prepayment reduces the principal; you can then ask the bank to lower the EMI or shorten the tenure. Banks cannot charge individual borrowers a prepayment penalty on floating-rate loans.
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