EMI Calculator

EMI stands for Equated Monthly Instalment — the fixed amount you pay your lender every month until the loan is fully repaid. The word "equated" is the key: regardless of how much principal is outstanding, your payment stays the same for the entire loan tenure. What changes month to month is the split between principal and interest within that fixed amount.

Three variables determine your EMI. The principal is the amount you borrow — the higher it is, the higher your EMI. The interest rate is what the lender charges for lending you money, expressed annually but applied monthly. Even a 0.25% difference in rate across a 20-year home loan can cost you several lakhs extra, so this number deserves close attention. Finally, the tenure is how long you take to repay — a longer tenure reduces the monthly payment but dramatically increases total interest paid over the life of the loan.

Understanding your EMI before you sign a loan agreement is not just useful — it is essential. Many borrowers focus only on whether the monthly number "fits" their salary, without checking what the total repayment will be. A ₹20 lakh personal loan at 14% for 5 years has an EMI of about ₹46,500, but you will pay back nearly ₹28 lakh in total — ₹8 lakh of which is pure interest. Running the numbers first lets you negotiate better terms, choose the right tenure, and decide how much to put down as a down payment. That is exactly what this calculator is for.

The formula banks use to calculate your EMI is:

Here, P is the principal loan amount (what you borrow), r is the monthly interest rate (annual rate divided by 12, then divided by 100), and n is the total number of monthly instalments (years × 12).

Worked example: You borrow ₹10,00,000 at 9% annual interest for 5 years.

• P = ₹10,00,000
• r = 9% ÷ 12 ÷ 100 = 0.0075 (monthly rate)
• n = 5 × 12 = 60 months

Plugging into the formula: (1 + 0.0075)^60 = 1.5657. So the numerator is 10,00,000 × 0.0075 × 1.5657 = 11,743, and the denominator is 1.5657 − 1 = 0.5657. Dividing: EMI = ₹20,758 per month. Over 60 months you pay ₹12,45,480 in total — ₹2,45,480 goes to interest alone. The calculator above does all of this instantly and also shows you the full year-wise breakdown.

This calculator works for any loan that uses the standard reducing-balance EMI structure — which covers the vast majority of loans in India: home loans, car loans, personal loans, and education loans. The only loans it does not apply to are flat-rate interest products (sometimes used by some NBFCs or vehicle dealers), where interest is calculated on the original principal throughout the tenure.

The best times to use it are: before applying, to know exactly what monthly outgo to expect and whether it fits within the 40–50% of income that lenders typically allow; when comparing offers from multiple banks, since a small rate difference across a long tenure makes a significant difference in total cost; and when planning a prepayment, to understand how much principal remains and what the interest saving from a lump-sum payment would look like. Use the amortization table below the calculator to see your exact outstanding balance at any point in your loan tenure.