EMI Calculator
EMI Calculator — Equated Monthly Instalment
Supports home loans, auto loans, personal loans, and any fixed-rate amortized loan
Your EMI results will appear here
Enter your loan amount, interest rate and tenure, then click Calculate EMI to see your monthly instalment, total interest, and repayment schedule.
| Year | Principal Paid | Interest Paid | Total Paid | Balance |
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Simple & Clear
Adjust your loan details, then click Calculate EMI to see a clean, complete breakdown.
India-Focused
Results shown in Indian Rupees (₹) with lakhs/crores formatting, suitable for home, car, and personal loans in India.
Year-wise Schedule
Expand the amortization table to see exactly how much principal and interest you pay each year.
Understanding EMI
What is an EMI and How is it Calculated?
A complete guide to Equated Monthly Instalments for Indian borrowers
An Equated Monthly Instalment (EMI) is a fixed payment amount made by a borrower to a lender on the same date each calendar month. EMIs are used to pay off both the interest and the principal amount of a loan over a specified number of years so that the loan is fully paid off by the end of the term.
In India, EMIs are the standard repayment method for home loans (housing loans), vehicle loans (car & two-wheeler), personal loans, education loans, and consumer durable loans. Banks and NBFCs (Non-Banking Financial Companies) calculate your EMI based on the loan amount, the interest rate, and the repayment tenure.
EMI is calculated using the standard reducing-balance formula:
For example, for a ₹10,00,000 loan at 8.5% p.a. for 20 years: r = 8.5/12/100 = 0.007083, n = 240. This gives an EMI of approximately ₹8,678. The total amount paid over 20 years is ₹20,82,720 — meaning ₹10,82,720 goes to the bank as interest. This calculator uses the same reducing-balance method.
Interest is computed on the entire principal for the full tenure. Simple to calculate but the effective interest rate is roughly double the stated rate. Mostly used for two-wheeler and some consumer durable loans.
Interest is charged only on the outstanding principal after each payment. This is the standard method used by Indian banks for home loans, car loans, and personal loans. This calculator uses this method.
EMI amount increases (step-up) or decreases (step-down) at fixed intervals. Step-up is popular among young borrowers expecting salary growth; step-down suits those nearing retirement with declining income.
The higher the principal, the higher the EMI — directly proportional. A larger down payment reduces the loan amount and therefore your monthly obligation.
Even a 0.5% difference in rate can meaningfully change the total interest paid over a long tenure. Always compare offers using the effective annual rate (EAR), not just the advertised rate.
A longer tenure reduces monthly EMI but significantly increases total interest paid. A shorter tenure means higher EMI but less overall cost. Use the calculator to find your ideal balance.
Making partial prepayments reduces the outstanding principal, directly cutting future interest. Most banks in India allow partial prepayment of floating-rate loans without penalty under RBI guidelines.