EMI Calculator
Calculate Equated Monthly Instalments for home, personal, car, and education loans — with interest split and total payable.
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Adjust the inputs on the left to see your monthly emi.
What your EMI actually pays for
Borrow 20 lakh for a flat and you pay it back in equal monthly pieces. That piece is the EMI. Part of it settles the interest the bank charges for that month, and whatever is left reduces what you still owe. Early on, most of each EMI is interest. By the final years, almost all of it goes to principal. Same payment every month, completely different split underneath.
This tool runs that math instantly. Enter the loan amount, the annual interest rate, and the tenure in years, and it gives you the monthly EMI, the total interest across the whole loan, and the full amount you will have paid by the end.
The formula it uses
EMI = P x r x (1 + r)^n divided by ((1 + r)^n minus 1)
Here P is the principal, n is the number of monthly instalments, and r is the monthly rate, which is your yearly rate split over 12 months. A 9 percent annual rate becomes 0.0075 per month.
A real number to hold on to
Take 20,00,000 at 9 percent for 20 years. That is 240 months at r = 0.0075. The EMI works out to roughly 17,995 a month. Across two decades you repay about 43.2 lakh, and around 23.2 lakh of that is interest alone. More than the flat itself, just in interest. First-time borrowers almost never see this coming.
Now stretch the same loan to 25 years. The EMI eases to about 16,785, which feels kinder on the monthly budget. But the total interest pushes past 30 lakh. Longer tenure, smaller EMI, far bigger lifetime cost. That trade sits at the heart of every loan decision.
Where the real leverage is
Rate matters. Tenure matters more than people expect. A few things worth remembering before you sign:
- Half a percent extra on a 20-year loan can quietly add a lakh or two over the full term.
- Prepaying in the early years kills the most interest, because that is when the interest slice of each EMI is fattest. One extra EMI a year can knock years off a home loan.
- Floating-rate loans ride the repo rate, so today's EMI is not locked for the whole tenure. Leave yourself some budget headroom.
Most lenders also cap your EMI at around 40 to 50 percent of take-home pay. Go past that and your eligibility starts to slip, however spotless your credit record looks.
EMI Calculator — frequently asked questions
How is EMI calculated on a loan?
EMI uses the formula P x r x (1+r)^n divided by ((1+r)^n minus 1). P is the loan amount, r is the monthly interest rate (annual rate divided by 12), and n is the number of months. The result stays fixed for the whole tenure on a fixed-rate loan, while the split between interest and principal shifts every month.
Does a longer tenure reduce my EMI?
Yes, stretching the tenure lowers each monthly EMI because you spread the principal over more months. The catch is total interest. A 20-year home loan can cost a few lakh less in interest than the same loan over 25 years, even though the longer one feels lighter month to month. Pick the shortest tenure your budget can handle comfortably.
What happens to my EMI if interest rates change?
On a floating-rate loan, the lender usually keeps your EMI steady and changes the tenure when the repo rate moves. Some banks instead raise the EMI itself. On a fixed-rate loan, nothing changes until the fixed period ends. Always ask your lender which method they use so a rate hike does not surprise you later.
Is it better to prepay a loan early or late?
Early prepayment saves far more interest. In the first years, most of your EMI is interest, so cutting the principal then removes interest you would have paid for the rest of the tenure. The same prepayment in the final years barely helps, since little interest is left. Even one extra EMI a year early on shortens the loan noticeably.
How much EMI can I afford on my salary?
Lenders generally want your total EMIs to stay under 40 to 50 percent of your monthly take-home pay. So on a 80,000 salary, roughly 32,000 to 40,000 across all loans. Staying near the lower end leaves room for rent, expenses, and emergencies, and it also keeps your loan eligibility healthy for future borrowing.
Does the EMI include processing fees and insurance?
No. The EMI only covers principal and interest. Processing fees, stamp duty, and loan insurance are usually charged separately, often upfront or added to the sanctioned amount. Read the sanction letter carefully, because a fee folded into the principal quietly raises both your EMI and the total interest you end up paying.
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Results from this calculator are estimates for informational use only — not financial, medical, or professional advice. Read our full disclaimer before acting on any number you see here.