EMI Calculator
Calculate your monthly loan repayment instantly. Enter the loan amount, interest rate, and tenure to see your EMI, total interest, and total amount payable — for any home, car, or personal loan.
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How EMI Calculator Works
What is EMI?
An Equated Monthly Installment (EMI) is the fixed monthly payment a borrower makes to a lender to repay a loan over a specified period. Each EMI consists of two components: a portion that repays the principal and a portion that covers the interest. Early EMIs are mostly interest; as the loan matures, more of each payment goes towards the principal.
EMIs are used for home loans, car loans, personal loans, education loans, and any other fixed-term borrowing. Our calculator uses the standard reducing-balance method, which is the method used by all major Indian banks and NBFCs.
The EMI Formula
The standard reducing-balance formula is:
EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1)
Where P is the principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the tenure in months.
Worked Example
Loan of ₹5,00,000 at 10% p.a. for 5 years (60 months):
- Monthly rate: r = 10 ÷ 12 ÷ 100 = 0.008333
- Monthly EMI = ₹10,624
- Total payment = 10,624 × 60 = ₹6,37,440
- Total interest = 6,37,440 − 5,00,000 = ₹1,37,440
Interest Rates by Loan Type
| Loan Type | Typical Rate (2024) | Usual Tenure |
|---|---|---|
| Home Loan | 8.5% – 9.5% p.a. | 10 – 30 years |
| Car Loan | 8% – 12% p.a. | 3 – 7 years |
| Personal Loan | 11% – 24% p.a. | 1 – 5 years |
| Education Loan | 8% – 15% p.a. | 5 – 15 years |
| Gold Loan | 7% – 14% p.a. | 3 months – 3 years |
How to Reduce Your EMI
- Make a larger down payment — Reducing the principal directly reduces the EMI.
- Negotiate a lower interest rate — A 1% difference on a ₹50 lakh home loan over 20 years saves approximately ₹36,000 per year.
- Choose a longer tenure — Spreading repayment over more months lowers each payment, but increases total interest paid.
- Make part-prepayments — Lump-sum prepayments reduce the outstanding principal, which lowers subsequent EMIs or shortens the tenure.
Flat Rate vs Reducing Balance
Banks in India use the reducing balance method — interest is charged only on the outstanding principal, which decreases with each payment. Some older consumer finance schemes used a flat rate method where interest is calculated on the original principal throughout the term. Flat rate loans are significantly more expensive; the effective interest rate is roughly double the stated flat rate.
This calculator uses the reducing balance method.
Accuracy & Sources
Last reviewed: July 2026. Formula source: Reducing balance EMI formula — standard for Indian banking. All calculations run in your browser. No data is sent to any server.
Frequently Asked Questions
EMI (Equated Monthly Installment) is the fixed monthly payment made to repay a loan over a set tenure. It is calculated using the formula: EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the tenure in months. Enter your values in the calculator above to get an instant result.
For a ₹20,00,000 loan at 9% per annum over 20 years (240 months): r = 9 ÷ 12 ÷ 100 = 0.0075, n = 240. EMI ≈ ₹17,996 per month. Total payment ≈ ₹43,19,040. Total interest ≈ ₹23,19,040 — roughly 1.16× the original principal over 20 years. Use the calculator above to try different rates and tenures.
A longer tenure reduces your monthly EMI but increases the total interest paid. For example, ₹10 lakh at 10% p.a.: over 5 years, EMI ≈ ₹21,247 with total interest ≈ ₹2.75 lakh. Over 10 years, EMI ≈ ₹13,215 with total interest ≈ ₹5.86 lakh. The lower EMI comes at the cost of paying more than twice the interest over the full term.
With a reducing balance rate (used by all major Indian banks), interest is charged only on the outstanding principal after each payment. With a flat rate (older consumer finance schemes), interest is charged on the original principal throughout — making the effective cost roughly double. Always confirm which method your lender uses. This calculator uses the reducing balance method.
Four ways to reduce your EMI: (1) Make a larger down payment to reduce the principal. (2) Negotiate a lower interest rate — compare across banks and NBFCs before accepting. (3) Choose a longer tenure (increases total interest, but lowers each payment). (4) Make part-prepayments during the loan — each prepayment reduces the outstanding principal and can shorten your tenure or lower your EMI.
Yes. The EMI formula is identical for all reducing-balance loans. Enter the loan amount, the annual interest rate, and the tenure in years or months. The calculator returns the monthly EMI, total interest payable, and total amount repayable for any loan type.
Total Interest = (Monthly EMI × Tenure in Months) − Principal Loan Amount. For example, ₹5 lakh at 12% for 3 years: EMI ≈ ₹16,607, total payment ≈ ₹5,97,852, total interest ≈ ₹97,852 — about 19.6% of the principal. The calculator shows all three figures instantly.