EMI Calculator
Calculate your monthly EMI, total interest and total payment for home, car and personal loans, with a full amortization view.
About the EMI Calculator
An EMI (Equated Monthly Instalment) is the fixed amount you pay every month towards a loan. This free EMI calculator instantly computes your monthly EMI, total interest cost and total repayment for any home loan, car loan or personal loan. Enter the loan amount in rupees, the annual interest rate and the tenure in years or months — the results update as you type.
The calculator uses the standard reducing-balance formula that Indian banks like SBI, HDFC and ICICI use: EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), where P is the principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly instalments. A visual bar shows what share of your total payment goes to principal versus interest.
Try different combinations before you sign: a ₹25 lakh home loan at 8.5% for 20 years costs about ₹21,696 a month, but stretching to 25 years lowers the EMI while adding lakhs in interest. Comparing tenures and rates here helps you negotiate better and pick an EMI that fits your monthly budget.
How to Use the EMI Calculator
- 1Enter the loan amount in rupees.
- 2Enter the annual interest rate quoted by your bank.
- 3Set the tenure and choose years or months.
- 4Read your monthly EMI, total interest and total payment, and check the principal-vs-interest bar.
Frequently Asked Questions
How is EMI calculated?
Banks use the reducing-balance formula EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), where P is the loan amount, r the monthly rate (annual rate ÷ 1200) and n the number of months. For ₹10 lakh at 9% over 5 years, the EMI works out to about ₹20,758.
Does a longer tenure reduce my EMI?
Yes — spreading the same principal over more months lowers each instalment, but you pay interest for longer, so the total interest cost rises sharply. A ₹30 lakh loan at 8.5% costs about ₹26,035/month over 20 years but ₹24,157/month over 25 years, with roughly ₹10 lakh extra interest.
What is the difference between flat rate and reducing balance interest?
A flat rate charges interest on the full original principal for the whole tenure, while reducing balance charges interest only on the outstanding amount, which falls with every EMI. A 10% flat rate roughly equals 17–18% reducing balance, so always compare loans using the reducing-balance (effective) rate — which is what this calculator uses.
Can I reduce my EMI or total interest with prepayments?
Yes. Part-prepayments cut the outstanding principal, so either your EMI drops or your tenure shortens — tenure reduction saves the most interest. RBI rules bar banks from charging prepayment penalties on floating-rate loans to individuals, so prepaying a home loan early in its life can save several lakhs.
Why does most of my early EMI go towards interest?
Interest is charged on the outstanding balance, which is largest at the start. In the first years of a long loan, 70–80% of each EMI can be interest. As the principal shrinks, the split gradually reverses — the bar in this calculator shows the overall principal-to-interest ratio for your inputs.
Is GST charged on loan EMIs?
No GST applies to the principal or interest portion of an EMI. However, 18% GST applies to bank service charges connected to the loan — processing fees, prepayment charges and bounce charges. Factor those one-time costs in when comparing loan offers between banks and NBFCs.