EMI Calculator
Calculate EMI for home loan, car loan, and personal loan instantly with full amortization schedule. Free, accurate, no login.
Loan Details
Results
Your Monthly EMI
₹8,678
Principal
₹10,00,000
Total Interest
₹10,82,776
Total Payment
₹20,82,776
Yearly Amortization Schedule
| Year | Principal Paid | Interest Paid | Balance |
|---|---|---|---|
| 1 | ₹19,902 | ₹84,236 | ₹9,80,098 |
| 2 | ₹21,661 | ₹82,477 | ₹9,58,436 |
| 3 | ₹23,576 | ₹80,563 | ₹9,34,860 |
| 4 | ₹25,660 | ₹78,479 | ₹9,09,200 |
| 5 | ₹27,928 | ₹76,211 | ₹8,81,272 |
| 6 | ₹30,397 | ₹73,742 | ₹8,50,875 |
| 7 | ₹33,084 | ₹71,055 | ₹8,17,791 |
| 8 | ₹36,008 | ₹68,131 | ₹7,81,784 |
| 9 | ₹39,191 | ₹64,948 | ₹7,42,593 |
| 10 | ₹42,655 | ₹61,484 | ₹6,99,938 |
| 11 | ₹46,425 | ₹57,714 | ₹6,53,513 |
| 12 | ₹50,529 | ₹53,610 | ₹6,02,985 |
| 13 | ₹54,995 | ₹49,144 | ₹5,47,990 |
| 14 | ₹59,856 | ₹44,283 | ₹4,88,134 |
| 15 | ₹65,147 | ₹38,992 | ₹4,22,987 |
| 16 | ₹70,905 | ₹33,234 | ₹3,52,082 |
| 17 | ₹77,172 | ₹26,966 | ₹2,74,910 |
| 18 | ₹83,994 | ₹20,145 | ₹1,90,916 |
| 19 | ₹91,418 | ₹12,721 | ₹99,498 |
| 20 | ₹99,498 | ₹4,640 | ₹0 |
For estimation only. Not professional financial, tax, or legal advice. Consult a qualified advisor before making decisions. Full disclaimer.
What is an EMI?
EMI — Equated Monthly Instalment— is the fixed amount you pay a lender every month until a loan is fully repaid. Every EMI contains two parts: interest on the outstanding principal and repayment of a portion of the principal itself. In the early months most of the EMI is interest; by the last year it is almost entirely principal. This pattern — amortisation — is the same whether the loan is a home loan, car loan, or personal loan and follows the rules in the Reserve Bank of India's Master Directions on loans and advances.
How EMI is calculated
The standard reducing-balance EMI formula used by every RBI-regulated bank in India is:
EMI = [P × R × (1+R)^N] / [(1+R)^N − 1]
Where P is the loan principal, R is the monthly interest rate (annual rate ÷ 12 ÷ 100), and N is the tenure in months. Most floating-rate home loans are now linked to the RBI repo rate under the External Benchmark Lending Rate (EBLR) framework, with a spread added by the bank — so R resets whenever the repo changes.
Worked example — ₹50 lakh home loan, 20 years, 8.5%
At P = ₹50,00,000, R = 0.085/12 = 0.00708, N = 240: the EMI works out to about ₹43,391. Total payment over 20 years is ~₹1.04 crore — of which ₹54 lakh is interest. Drop the tenure to 15 years and the EMI rises to ₹49,237 but total interest falls to ₹38.6 lakh — a saving of ₹15.5 lakh for an extra ₹5,846/month. That is why shorter tenure almost always beats lower EMI.
Regulatory and tax context
- Section 24(b): home loan interest deduction up to ₹2 lakh/year on self-occupied property (old regime only).
- Section 80C: principal repayment on a home loan qualifies within the ₹1.5 lakh cap.
- Section 80EEA: additional ₹1.5L interest deduction for affordable housing (sanctioned before 31 Mar 2022).
- RBI circular on prepayment: no foreclosure charges on floating-rate retail loans to individuals.
- MCLR vs EBLR: all new floating retail loans since Oct 2019 must be EBLR-linked; older MCLR loans can be migrated on request.
How to reduce your EMI burden
- Prepay early. A prepayment in year 3 saves 5-6× more interest than the same amount in year 15, because interest front-loads.
- Refinance (balance transfer). If your current rate is > 50 bps above market, switching is worth it — break-even typically under 18 months on loans above ₹30 lakh.
- Shorten tenure at each hike. When the repo rate rises, ask the bank to keep EMI unchanged and increase tenure only as a last resort.
- Negotiate the spread. A CIBIL score of 780+ and an existing salary relationship can unlock 15-40 bps off the advertised rate.
Common mistakes
- Choosing the longest tenure by default. A 30-year loan pays nearly 2× the principal in interest over its life.
- Ignoring processing fees and insurance. Bundled "protection" insurance can add 1-2% to the effective cost.
- Prepaying a cheap loan before a costly one. Always clear credit-card and personal-loan balances (14-36% APR) before a home loan at 8-9%.
- Confusing flat rate with reducing rate. A 10% flat personal loan has an effective reducing rate of roughly 18-19%.
Related calculators and reading
See also: Home Loan EMI Calculator, Home Loan Eligibility, Personal Loan EMI, Car Loan EMI, glossary: Amortization.
Common questions about EMI
What is EMI and how does it work?+
EMI stands for Equated Monthly Installment — the fixed amount you pay each month to a lender until your loan is fully repaid. Every EMI consists of two parts: interest on the remaining principal, and repayment of a portion of the principal itself. Early in the loan, most of your EMI is interest; toward the end, it is almost entirely principal.
How is EMI calculated?+
EMI = [P × R × (1+R)^N] / [(1+R)^N − 1], where P is the principal loan amount, R is the monthly interest rate (annual rate ÷ 12 ÷ 100), and N is the tenure in months. Every RBI-regulated bank in India uses this exact formula.
Can I reduce my EMI after the loan starts?+
Yes. Four ways: (1) Prepay a lump sum to reduce outstanding principal — EMI drops from next reset. (2) Transfer to a bank offering a lower rate (balance transfer). (3) Request tenure extension — reduces monthly outflow but increases total interest. (4) Negotiate a rate cut if your credit score is 750+ and repo rate has dropped.
What happens to my EMI when RBI cuts the repo rate?+
If your loan is linked to RLLR (Repo Linked Lending Rate), the rate cut is passed to you within 3 months. For MCLR-linked loans, it reflects at the next reset (6-12 months). Your EMI stays the same by default, but tenure shortens — unless you explicitly ask the bank to recalculate EMI at the new rate.
What is amortization and why does it matter?+
Amortization is the split of every EMI into principal and interest components. In year 1 of a 20-year home loan, roughly 75% of each EMI is interest. By year 15, it flips — 75% becomes principal. This is why prepaying early has outsized impact on total interest savings.
Is it better to prepay the loan or invest the surplus?+
Compare your loan rate (post-tax) to expected investment return (post-tax). Home loan at 8.75% with ₹2L interest tax deduction costs roughly 6% post-tax. If your SIP returns 12% post-tax (10.4%), invest. If loan is personal at 14% with no tax benefit, prepay first.
How does loan tenure affect total interest?+
Longer tenure = lower monthly EMI but dramatically higher total interest. A ₹50L home loan at 8.75% costs ₹56L in interest over 20 years, but ₹86L over 30 years. Shorter tenure whenever affordable saves huge money.
What are the EMI tax benefits under Section 80C and 24(b)?+
Under the old tax regime, home loan principal repayment qualifies for up to ₹1.5 lakh deduction under Section 80C, and interest payment qualifies for up to ₹2 lakh under Section 24(b) for a self-occupied home. First-time buyers may get an additional ₹50,000 under 80EE/80EEA. Not available under the new regime.
Does the EMI calculator include processing fees?+
No. The EMI formula is purely principal + interest + tenure. Processing fees (typically 0.5%-2% of loan amount) are paid separately at loan origination and do not affect EMI. GST on processing fee is extra.
What is the maximum home loan tenure in India?+
Most banks offer home loan tenures up to 30 years, capped by the borrower's retirement age (usually 60-70 depending on employer). NBFCs offer up to 30 years in some cases. Longer tenure = higher eligibility but more total interest.