EMI Calculator
Free EMI calculator for India.
EMI Calculator
Loan EMI for Home, Car & Personal Loan
EMI Calculator: Plan Home, Car, and Personal Loan Repayments Down to the Rupee
When borrowing ₹25 lakh for an apartment, ₹10 lakh for a compact SUV, or ₹5 lakh for an emergency personal loan, looking solely at the monthly EMI hides half the story. Over a 20-year home loan at 8.50% p.a., total interest actually exceeds the original principal you borrowed—meaning a ₹50,00,000 loan quietly costs ₹1,04,13,879 by the final installment. Our interactive EMI Calculator computes your exact Equated Monthly Instalment on a reducing-balance basis, checks your EMI-to-income affordability ratio against bank underwriting limits, simulates annual lump-sum prepayments, and generates a complete year-by-year amortization schedule.
What Is an EMI Calculator?
An EMI (Equated Monthly Instalment) calculator is a reducing-balance loan model built around Indian banking conventions for housing loans, vehicle loans, and unsecured personal credit. Every EMI you pay on a fixed date each month blends two shifting parts: the monthly interest charge on your remaining principal and the principal repayment itself. While the total rupee amount debited via NACH/ECS stays constant (assuming an unchanged floating rate), the internal ratio tilts heavily toward bank interest in the early years and shifts toward principal recovery in the final years.
Consider Rohan, who earns ₹80,000 net in-hand salary per month (which you can verify from gross package using our CTC to in-hand salary calculator) and takes a ₹25,00,000 home loan at 8.50% p.a. for 20 years. His monthly EMI comes to ₹21,696—comfortably sitting at 27.1% of his net income, well inside standard 40%–50% bank FOIR caps. Yet without prepayments, Rohan will pay ₹27,06,939 in interest—108.3% of the loan itself! Entering just ₹50,000 as an Annual prepayment in our calculator shows Rohan he can slash 5 years and 1 month off his tenure and save ₹7,96,000+ in interest.
How the EMI Calculator Formula Works (Step-by-Step Example)
Banks and NBFCs across India compute reducing-balance EMIs using the standard geometric annuity formula:
EMI = P × r × (1 + r)^n ÷ [ (1 + r)^n − 1 ]
- P = Loan Principal in rupees (e.g., ₹25,00,000)
- r = Monthly periodic interest rate = Annual Rate ÷ 12 ÷ 100 (e.g., 8.50 ÷ 1200 = 0.0070833)
- n = Total loan tenure in months = Years × 12 (e.g., 20 × 12 = 240 months)
Let’s solve Rohan’s ₹25,00,000 home loan at 8.50% p.a. for 240 months:
- Step 1 (Compounding Factor): (1 + 0.0070833)^240 = 5.441243.
- Step 2 (Numerator): ₹25,00,000 × 0.0070833 × 5.441243 = ₹96,355.34.
- Step 3 (Denominator): 5.441243 − 1 = 4.441243.
- Step 4 (Exact Monthly EMI): ₹96,355.34 ÷ 4.441243 = ₹21,695.58/month (rounded to ₹21,696).
- Step 5 (Lifetime Cost Breakdown): ₹21,695.58 × 240 months = ₹52,06,939 total payable, consisting of ₹25,00,000 principal plus ₹27,06,939 total interest. In Year 1 alone, Rohan pays ₹2,60,347 in EMIs—of which ₹2,10,636 goes to interest and only ₹49,711 reduces his loan balance!
Indian Loan Benchmark Comparison: Home vs. Car vs. Personal Loan EMIs
Interest rates, tenures, and prepayment rules vary sharply across loan types in India. Here is a side-by-side benchmark across typical salaried borrower profiles:
| Loan Type & Amount | Typical Bank Rate (p.a.) | Standard Tenure | Monthly EMI | Total Interest Payable | Interest as % of Principal |
|---|---|---|---|---|---|
| Home Loan · ₹50,00,000 | 8.50% (Repo-linked) | 20 Years (240 mo) | ₹43,391 | ₹54,13,879 | 108.3% |
| Home Loan · ₹50,00,000 (Shorter Tenure) | 8.50% (Repo-linked) | 15 Years (180 mo) | ₹49,237 | ₹38,62,652 | 77.3% |
| New Car Loan · ₹10,00,000 | 9.00% (Fixed/Float) | 5 Years (60 mo) | ₹20,758 | ₹2,45,501 | 24.6% |
| New Car Loan · ₹10,00,000 | 9.25% (Longer Term) | 7 Years (84 mo) | ₹16,216 | ₹3,62,140 | 36.2% |
| Personal Loan · ₹5,00,000 | 11.50% (Prime Salaried) | 3 Years (36 mo) | ₹16,488 | ₹93,568 | 18.7% |
| Personal Loan · ₹5,00,000 | 16.00% (Mid-Credit Tier) | 5 Years (60 mo) | ₹12,159 | ₹2,29,542 | 45.9% |
Notice the ₹50 lakh home loan comparison in the top two rows: paying ₹5,846 more per month to choose a 15-year tenure instead of 20 years saves ₹15,51,227 in pure interest.
Repo-Rate Resets, Tax Benefits, and Smart Prepayment vs. SIP Decisions
Since October 2019, retail floating-rate home and MSME loans from Indian banks have been linked to external benchmarks—primarily the RBI Repo Rate (EBLR). When the RBI hikes the repo rate by 50 basis points, banks default to keeping your monthly EMI constant and quietly extending your loan tenure—sometimes pushing a 20-year loan out to 24 or 26 years! Whenever your bank sends a rate-reset email, open our EMI Calculator, enter your remaining principal and new interest rate, and either request an EMI increase or make a lump-sum part-payment so negative tenure creep never traps you past retirement. You can also check how much property budget fits your income safely in our home affordability calculator.
Should you prepay an 8.50% home loan or invest surplus cash in equity mutual funds via our SIP calculator? First check your tax regime using the old vs new tax regime calculator: if you file under the New Tax Regime (where Section 24(b) ₹2 lakh self-occupied home-loan interest deduction is unavailable), your effective borrowing cost is the full 8.50%—making early-tenure part-payments an unbeatable, risk-free foundation alongside a core equity SIP.
Common Mistakes People Make With the EMI Calculator
- Mistake 1: Falling for Dealer “Flat Rate” Quotes on Auto & Two-Wheeler Loans. A dealer pitching “just 7.5% interest” on a flat-rate calculation actually charges ~13.8% on a reducing-balance basis. Always ask for the reducing-balance IRR/APR before comparing offers.
- Mistake 2: Stretching FOIR Above 50% on Dual-Loan Stacks. Stacking a ₹38,000 home EMI and ₹16,000 car EMI on a ₹95,000 net salary (56.8% FOIR) leaves zero buffer for health emergencies, school fees, or a 0.50% floating-rate hike.
- Mistake 3: Waiting Until Year 12 to Start Prepaying a Home Loan. Because over 65% of total 20-year interest is collected during the first 8 years, a ₹1,00,000 prepayment in Year 2 saves nearly four times as much interest as the exact same ₹1,00,000 paid in Year 15.
Adjust the loan amount, interest rate, and annual prepayment fields in the EMI Calculator above, then expand the yearly amortization schedule to pinpoint the exact year your principal overtakes interest.
Related Calculators: Home Affordability Calculator · Personal Loan Calculator · SIP Calculator · CTC to In-Hand Salary Calculator India
How to Use This Calculator
EMI = P × r × (1 + r)^n / [(1 + r)^n − 1], where P = Loan Principal (₹), r = Annual Rate / 12 / 100, and n = Tenure in Months
- Select your loan category tab—Home Loan, Car Loan, or Personal Loan—and set the Loan amount (₹) using either the slider or the exact rupee input box.
- Enter the annual reducing-balance Interest rate (% p.a.) quoted by your bank or NBFC.
- Set the Loan tenure in years (from 1 to 30 years) to calculate your baseline monthly installment.
- Optionally enter an Annual prepayment (₹) amount to simulate lump-sum principal part-payments once per year, plus your Monthly net income (₹) to run an instant EMI-to-income affordability check.
- Inspect your exact Monthly EMI, total interest payable, tenure and interest saved via prepayment, and click Show amortization schedule to view the year-by-year principal vs. interest table.