About the EMI Calculator
An EMI (Equated Monthly Instalment) is the fixed amount you pay your bank every month until a loan is fully repaid. Each EMI is part interest and part principal. At the start most of it is interest; towards the end most of it reduces the loan itself.
This EMI calculator works for home loans, car loans, two-wheeler loans, education loans and personal loans. Along with the EMI it shows the total interest you will pay, a chart of principal versus interest, how your outstanding balance falls year by year, and a full yearly repayment table.
How to use it
- Enter the loan amount you want to borrow.
- Enter the yearly interest rate offered by the lender.
- Enter the tenure in years (for example 20 for a home loan, 5 for a car loan).
- Read the monthly EMI, total interest and total amount payable.
- Look at the chart and the yearly table to see how the loan is paid off over time.
Formula
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r is the monthly interest rate (yearly rate ÷ 12 ÷ 100) and n is the number of monthly instalments.
Example
For a car loan of ₹10,00,000 at 9% for 5 years: r = 0.0075 and n = 60. The EMI is about ₹20,758, the total paid is about ₹12,45,501 and the total interest is about ₹2,45,501.
How tenure changes what you pay
A longer tenure lowers the EMI but raises the total interest, because you owe the money for longer. On a ₹30 lakh home loan at 8.5%, a 20-year tenure gives an EMI of about ₹26,035 and total interest of about ₹32.5 lakh. Stretching it to 30 years brings the EMI down to about ₹23,067, but the total interest jumps to about ₹53 lakh.
Try a few tenures in the calculator and compare the "Total interest" line. Choose the shortest tenure whose EMI you can comfortably afford.
How much EMI is affordable?
Many lenders prefer that all your EMIs together stay below roughly 40–50% of your monthly take-home pay. Keeping it lower leaves room for savings, emergencies and rising expenses. The calculator shows the EMI; you decide whether it fits your budget.
Prepayment saves interest
Paying extra towards the principal, especially in the early years, reduces the outstanding balance on which interest is charged. The yearly table shows how slowly the balance falls at first, which is exactly why early prepayments make such a difference. For floating-rate home loans taken by individuals, banks in India generally do not charge prepayment penalties, but check your loan agreement.
Frequently asked questions
Does the EMI include processing fees or insurance?
No. The result covers principal and interest only. Processing fees, insurance and other charges are extra.
What happens to my EMI if a floating rate changes?
Banks usually keep the EMI the same and change the tenure, or change the EMI and keep the tenure. Enter the new rate and remaining balance to see the effect.
Is this the same as a mortgage calculator?
Yes. The same formula is used worldwide for fixed-rate loans repaid in equal monthly payments.
Why is my bank’s EMI slightly different?
Banks may round, count days differently or add charges. Treat this as a close estimate and confirm with your lender.