EMI Calculator
Calculate the fixed monthly installment for any type of loan from its principal, interest rate, and tenure — a general-purpose EMI calculator that works for any loan category.
- 1Enter the loan principal amount you plan to borrow
- 2Enter the annual interest rate offered
- 3Enter the loan tenure in months or years
- 4Click Calculate to see your EMI, total interest, and total payment
How the EMI is calculated
An Equated Monthly Instalment (EMI) is the fixed amount you pay every month so that a loan is fully repaid by the end of its tenure. This calculator uses the standard reducing-balance formula:
EMI = P × r × (1 + r)n / ((1 + r)n − 1)
where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly instalments (years × 12). The tool then multiplies the EMI by n to show the total payment and subtracts the principal to show total interest. Amounts are displayed in the Indian digit-grouping format.
Worked examples
Personal loan. ₹5,00,000 at 10% a year for 5 years: r = 0.8333%, n = 60. The EMI is about ₹10,624, the total repayment about ₹6.37 lakh, and the interest about ₹1.37 lakh.
Home loan. ₹50,00,000 at 8.5% for 20 years: n = 240. The EMI is about ₹43,391, the total repayment is roughly ₹1.04 crore, and the interest alone is about ₹54 lakh, which is more than the amount you borrowed.
What moves the EMI most
- Tenure. A longer tenure lowers the EMI but raises total interest sharply. Stretching the home loan above from 20 to 30 years lowers the monthly payment but adds tens of lakhs in interest.
- Interest rate. Even a 0.5 percentage-point difference on a large, long loan changes total interest by lakhs. Compare offers on rate, not just on the EMI quoted.
- Loan amount. A larger down payment shrinks P and everything that follows from it.
Why early EMIs are mostly interest
In a reducing-balance loan, interest each month is charged on the outstanding principal. Early on the balance is high, so most of each EMI goes to interest and only a small part reduces the principal. Over time the interest portion falls and the principal portion rises. This is why prepaying early in the tenure saves far more interest than prepaying near the end. To see the effect of a lump-sum payment, use the loan prepayment calculator.
What the calculator does not include
- Floating-rate changes. Many home loans are linked to an external benchmark. When the rate changes, your lender will adjust the EMI or the tenure. The tool assumes one fixed rate for the whole period.
- Fees and charges. Processing fees, insurance premiums, GST on fees and prepayment penalties are not included, so your lender's schedule may differ.
- Rounding. Banks round instalments in their own way, so expect small differences of a few rupees from an official statement.
Using it before you borrow
A common guideline is to keep all your EMIs together under roughly 40% of your monthly take-home income, though lenders set their own limits. If you are not sure how much you can borrow, use the loan eligibility calculator, or compare options with the loan comparison calculator.
The result is an estimate to help you plan. Your lender's sanction letter and repayment schedule are the authoritative figures.