EMI Calculator

Work out the monthly instalment (EMI) on any loan, how much interest you will pay in total, and how the balance comes down each year.

How to use the EMI calculator

Enter the loan amount, the annual interest rate quoted by your lender and the tenure in years. The EMI, total interest and total amount payable update instantly. Scroll the table to see how much principal and interest you pay in each year and what balance remains.

EMI formula

Banks and NBFCs in India calculate EMI using the reducing-balance method:

EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1) P = loan amount r = monthly interest rate (annual rate ÷ 12 ÷ 100) n = number of monthly instalments

Example

For a loan of ₹10,00,000 at 9% for 5 years, r = 0.0075 and n = 60. The EMI works out to about ₹20,758. Over 60 months you repay about ₹12,45,501, so the total interest is roughly ₹2,45,501.

How to reduce your EMI or total interest

Longer tenure lowers the EMI but increases total interest.
Part-prepayments early in the loan cut interest the most, because they reduce the balance on which interest is charged.
A lower rate matters more than it looks. On long loans, even 0.5% less can save lakhs, so compare offers and consider a balance transfer.
A bigger down payment reduces the principal from day one.

Frequently asked questions

Is the EMI fixed for the whole tenure?

For a fixed-rate loan, yes. Most Indian home loans are floating-rate and linked to the repo rate (EBLR), so when the rate changes the bank usually changes the tenure first and the EMI only if you ask or the tenure limit is reached.

Why is interest so high in the early years?

Interest is charged on the outstanding balance. At the start the balance is highest, so most of each EMI goes to interest. As the balance falls, a larger share goes to principal. The year-wise table shows this shift.

Does this EMI calculator work for all loans?

Yes. It works for any reducing-balance loan: home, car, personal, education, two-wheeler or business loans. For loan-specific options such as down payment or processing fees, use the dedicated home, car or personal loan EMI calculators.

Does the EMI include processing fees or insurance?

No. The EMI covers only principal and interest. Processing fees, GST on fees and bundled insurance are extra costs. The Personal Loan EMI Calculator includes processing fees.

Results are estimates for information only and are not financial, tax or investment advice. Rates and rules change, so confirm figures with your bank, employer or a qualified professional before making decisions.