EMI Calculator

What is an EMI?

An Equated Monthly Instalment is the fixed amount you pay each month until a loan is fully repaid. Each EMI contains interest on the outstanding balance and a part repayment of principal. Early in the loan, most of the EMI is interest; towards the end, most is principal. The amortization schedule shows exactly how this shifts.

The EMI formula

EMI = P × r × (1 + r)ⁿ ÷ [(1 + r)ⁿ − 1], where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly instalments. For example, ₹10 lakh at 8.5% for 20 years gives an EMI of about ₹8,678, and you pay around ₹10.8 lakh in interest over the loan.

How to lower your EMI or interest

• Longer tenure lowers the EMI but increases total interest significantly.
• Bigger down payment reduces both EMI and interest.
• Better rate: even 0.5% lower on a long home loan saves lakhs. Compare lenders and consider a balance transfer.
• Prepayments cut interest sharply; see the loan prepayment calculator.

Typical rates and tenures

Home loans usually run 15–30 years, car loans 3–7 years and personal loans 1–5 years, with personal loans carrying the highest rates. Most home loans in India are floating-rate, linked to an external benchmark, so the rate and EMI or tenure can change over time.

Affordability tip

Many lenders prefer that all EMIs together stay below about 40–50% of your take-home pay. Check your take-home with the in-hand salary calculator before committing. This calculator gives estimates; the lender’s sanction letter and schedule are final and may include processing fees and insurance.

Quick answers

What happens if the floating rate rises? Lenders usually increase the tenure first, keeping the EMI the same. Can I change tenure later? Many lenders allow it on request.