EMI Calculator India

EMI uses the reducing-balance formula:

EMI = P × r × (1+r)ⁿ / ((1+r)ⁿ − 1)

• P — the loan principal you're borrowing.
• r — the monthly interest rate (annual rate ÷ 12 ÷ 100). For 8.5% per annum that's 0.085 / 12 = 0.00708.
• n — the loan tenure in months. For 20 years that's 20 × 12 = 240.

Most Indian banks use this method for home loans, car loans, and personal loans.

Yes — the formula is identical. Only the typical inputs differ:

• Home loans: 15–30 year tenure, 8–9.5% rate (floating, linked to RBI repo), large principal.
• Car loans: 3–7 year tenure, 9–11% rate (mostly fixed), medium principal.
• Personal loans: 1–5 year tenure, 11–18% rate (fixed), unsecured so highest rates.
• Education loans: 5–15 year tenure, 9–13% rate, often with a moratorium during the course.
• Business loans: 1–7 year tenure, 11–18% rate, varies a lot by lender and security.

Fixed rate — stays constant for the full tenure (or a fixed initial period like 3 or 5 years). EMI never changes. Common on car loans and personal loans.

Floating rate — tied to the bank's lending benchmark (usually RBI repo rate + spread). When the repo rate moves, your rate moves, and your EMI or tenure adjusts. Common on home loans.

This calculator assumes the rate you enter applies for the full tenure. For floating-rate loans, re-run the calculator whenever your rate is reset to see the new EMI.

When you make a part-prepayment, banks usually offer two options:

1. Reduce the EMI — tenure stays the same, monthly outgo drops.
2. Reduce the tenure — EMI stays the same, you finish the loan earlier.

Tenure reduction usually saves more total interest, because interest accrues for fewer months overall. RBI rules require banks to allow prepayment on floating-rate home loans without penalty for individual borrowers.

Amortization is how each EMI splits between principal repayment and interest.

In the early EMIs, interest is large because the outstanding balance is high. As the balance shrinks, the interest portion shrinks and the principal portion grows. By the last EMI, almost the entire payment goes towards principal.

That's why prepaying early in the loan saves the most interest — you're knocking down a balance that's still large.

Under the Old Tax Regime, salaried borrowers can claim:

• Up to ₹2,00,000 per year on home loan interest (Section 24).
• Up to ₹1,50,000 on home loan principal repayment as part of the Section 80C limit.
• Additional ₹50,000 under Section 80EEA for affordable housing (conditions apply).

Under the New Tax Regime (FY 2026-27), home loan interest deduction is not available for a self-occupied property. Run your numbers through the GSTBox Income Tax Calculator to see which regime saves you more.

Reducing balance (used by this calculator and almost all Indian retail loans): interest is charged only on the outstanding principal each month. As you pay down the balance, your interest cost drops.

Flat rate (sometimes seen on small dealer-financed schemes): interest is charged on the full original principal for every month of the tenure. The effective interest rate works out to roughly 1.8–2× the quoted flat rate, so it's almost always more expensive.

If a lender quotes you a flat rate, ask for the equivalent reducing-balance rate before signing.