EMI Calculator: Work Out Your Monthly Loan Payment
Use this EMI calculator to find the fixed amount you pay each month on a home loan, car loan or personal loan. Enter the loan amount, the yearly interest rate and the tenure to see your EMI, the total interest and the full amount you will repay.
Estimates for general information. This is not financial advice.
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From related categoriesHow to use this calculator
- Enter the loan amount in rupees.
- Enter the annual interest rate as a percentage.
- Enter the tenure in years. Decimals work, so 2.5 means 30 months.
- Read the EMI, total interest and total payment. They update as you type.
The formula
Worked example
For a loan of ₹10,00,000 at 9% a year for 5 years, r = 0.0075 and n = 60. The EMI comes to about ₹20,758. Over 60 months you pay about ₹12,45,501, so the interest is about ₹2,45,501.
Understanding your result
The EMI is the same every month, but its split changes. In the early months most of each EMI pays interest; later most of it pays principal. A longer tenure lowers the EMI but raises the total interest. A shorter tenure does the opposite.
When to use it
- Compare loan offers from different lenders at the same amount and tenure.
- Check whether an EMI fits your monthly budget before you apply.
- See how much a lower interest rate saves over the life of a loan.
In-depth guide
How an EMI is split between interest and principal
Every EMI has two parts. The interest part is charged on the balance still owed, and the principal part is whatever is left of the instalment after interest. In the first months the balance is large, so most of the instalment is interest. As the balance falls, the interest part shrinks and the principal part grows, even though the EMI itself never changes.
The table below follows the example on this page: a loan of ₹10,00,000 at 9% a year for 5 years, with an EMI of ₹20,758. It shows how much principal and interest you pay in each year and the balance that remains at the end of the year.
| Year | Principal paid | Interest paid | Balance at year end |
|---|---|---|---|
| 1 | ₹1,65,830 | ₹83,270 | ₹8,34,170 |
| 2 | ₹1,81,386 | ₹67,714 | ₹6,52,784 |
| 3 | ₹1,98,401 | ₹50,699 | ₹4,54,383 |
| 4 | ₹2,17,013 | ₹32,088 | ₹2,37,370 |
| 5 | ₹2,37,370 | ₹11,730 | ₹0 |
How tenure changes your EMI and total interest
A longer tenure lowers the monthly EMI but raises the total interest, because the bank lends you the money for more months. The table compares tenures for the same ₹10,00,000 loan at 9% a year.
| Tenure | EMI | Total interest | Total paid |
|---|---|---|---|
| 3 years | ₹31,800 | ₹1,44,790 | ₹11,44,790 |
| 5 years | ₹20,758 | ₹2,45,501 | ₹12,45,501 |
| 7 years | ₹16,089 | ₹3,51,483 | ₹13,51,483 |
| 10 years | ₹12,668 | ₹5,20,109 | ₹15,20,109 |
Moving from 5 years to 10 years cuts the EMI by about ₹8,091 a month, yet you pay roughly ₹2,74,608 more in interest. Pick the shortest tenure whose EMI you can pay comfortably without touching your emergency savings.
How the interest rate changes the EMI
A small change in rate matters more than it looks, because it is applied to a large balance for many months. The table keeps the loan at ₹10,00,000 for 5 years and changes only the rate.
| Rate a year | EMI | Total interest |
|---|---|---|
| 8% | ₹20,276 | ₹2,16,584 |
| 9% | ₹20,758 | ₹2,45,501 |
| 10% | ₹21,247 | ₹2,74,823 |
| 11% | ₹21,742 | ₹3,04,545 |
| 12% | ₹22,244 | ₹3,34,667 |
Ways to reduce the interest you pay
- Make a larger down payment so the loan amount is smaller.
- Choose the shortest tenure that keeps the EMI affordable.
- Part-prepay when you have spare cash. Prepayments in the early years save the most interest because the balance is highest then. Use the Loan Calculator to see the effect of an extra monthly amount.
- Compare the processing fee and other charges along with the rate. A slightly lower rate can be cancelled out by higher fees.
- Ask your lender whether you can switch to a lower rate. Floating-rate loans change with the lender's benchmark, so your EMI or your tenure can change over time.
Common mistakes when reading an EMI
- Comparing loans by EMI alone. Always compare the total amount paid.
- Forgetting that the quoted rate is per year. The calculator divides it by 12 for each month.
- Treating a flat rate as a reducing-balance rate. A flat rate charges interest on the full original amount for the whole tenure, so its true cost is higher than the same number quoted as a reducing-balance rate.
- Ignoring fees, insurance and taxes that are not part of the EMI formula.
Assumptions and limits
Assumes a fixed rate, equal monthly payments and interest charged monthly on the reducing balance. Processing fees, insurance, prepayment charges and floating-rate changes are not included, so your lender's schedule may differ slightly.
Frequently asked questions
What does EMI stand for?
Equated Monthly Instalment: the fixed amount you pay your lender each month until the loan is cleared.
Is the interest calculated on the reducing balance?
Yes. Interest each month is charged on the outstanding principal, which falls as you pay.
Why is my bank's EMI slightly different?
Banks may round differently, add fees, or start the first instalment on a different date.
Does a longer tenure save money?
It lowers the monthly EMI but increases the total interest you pay.
Can I use this for a car or personal loan?
Yes. The formula is the same for any fixed-rate loan with equal monthly payments.