EMI Calculator

How to use the EMI calculator

An EMI (equated monthly instalment) is the fixed amount you repay every month on a home, car, personal or education loan. This EMI calculator shows your instalment, the total interest and the total amount payable, with a year-by-year breakdown, as soon as you enter three numbers:

1. Loan amount, in rupees or your currency.
2. Interest rate per year, as quoted by the bank.
3. Tenure, in years or months.

Amounts in Indian rupees are shown in the lakh and crore format (₹10,00,000). Nothing you enter leaves your device.

EMI formula with an example

EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), where P is the loan amount, r is the monthly rate (yearly rate ÷ 12 ÷ 100) and n is the number of months.

Example: ₹10,00,000 at 9% a year for 5 years (60 months). r = 0.0075. The EMI is ₹20,758.36. Over 60 months you pay ₹12,45,501.31, so the interest is ₹2,45,501.31.

In the first month, interest is ₹10,00,000 × 0.0075 = ₹7,500, so ₹13,258.36 of your first EMI reduces the loan. As the balance falls, the interest part shrinks and more of each EMI goes to the principal.

Shorter or longer tenure?

The same ₹10,00,000 loan at 9%, calculated for three tenures:

A longer tenure makes the EMI easier to manage but costs more in total. Many people choose the EMI they can comfortably pay from their monthly income, then the shortest tenure that fits it.

Flat rate versus reducing balance

Some loans, often vehicle or consumer loans, are quoted at a “flat” rate. Flat interest is charged on the full original amount for the whole tenure, even as you repay it, so it costs much more than the same number on a reducing balance:

Working backwards, a 9% flat rate here costs the same as about 15.71% on a reducing balance. Always ask which method a lender uses; this calculator uses reducing balance, the standard for bank home loans.

What a part-prepayment saves

Example, calculated month by month: a ₹25,00,000 home loan at 8.5% for 20 years has an EMI of ₹21,695.58 and total interest of ₹27,06,939.40. Paying an extra ₹1,00,000 after the first year, and keeping the same EMI, finishes the loan in 219 months instead of 240 and brings the interest down to ₹23,42,226.84, a saving of ₹3,64,712.56. Check your loan agreement for any prepayment charges first.

Before you take the loan

• Compare the total cost, not just the EMI: processing fees and insurance add to what you pay.
• Check whether the rate is fixed or floating. With a floating rate, your EMI or tenure can change when rates move.
• Leave room in your budget for other expenses and emergencies after the EMI.
• Ask for the repayment schedule from the bank and compare it with the calculator; large differences usually point to fees or a different interest method.

EMI in other currencies

The EMI formula works the same in any currency. Choose Pakistani rupees, UAE dirhams, pounds or dollars in the calculator to see amounts in that currency; nothing is converted, only the symbol and number format change. Indian rupees use the lakh and crore grouping (₹25,00,000 for 25 lakh); other currencies use the international format (2,500,000).

Ask in plain words

• “EMI for 25 lakh at 8.5% for 20 years?”
• “Compare 3 and 5 years on a 6 lakh car loan at 9.5%.”
• “How much do I save if I prepay 2 lakh after 3 years?”

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