EMI Calculator

What is an EMI Calculator?

An EMI (Equated Monthly Instalment) calculator estimates the fixed amount you pay every month to repay a loan. You enter the loan amount, the annual interest rate and the tenure in months. The calculator returns the monthly EMI, the total interest over the life of the loan, the total amount repaid, and a month-by-month amortisation schedule showing how much of each EMI goes towards interest and how much reduces the principal.

It works for any loan repaid in equal monthly instalments on a reducing balance, such as home loans, car loans, personal loans and education loans in repayment.

EMI Formula

The calculator uses the standard reducing-balance formula, where interest is charged every month only on the principal still outstanding:

EMI = P × r × (1 + r)n / ((1 + r)n − 1)

• EMI = equated monthly instalment
• P = principal (the loan amount)
• r = monthly interest rate (annual rate ÷ 12 ÷ 100)
• n = tenure in months (years × 12)

Total repayment is EMI × n and total interest is EMI × n − P. Each month, the interest portion is outstanding balance × r and the rest of the EMI reduces the balance. Read the full assumptions on our EMI methodology page.

Worked Example: ₹30 Lakh Home Loan

Suppose you borrow ₹30,00,000 at 8.5% a year for 20 years:

• P = 30,00,000
• r = 8.5 / 12 / 100 ≈ 0.0070833
• n = 20 × 12 = 240
• (1 + r)²⁴⁰ ≈ 5.4412, so EMI ≈ ₹26,035

Over 240 instalments you repay about ₹62,48,327, of which roughly ₹32,48,327 is interest, more than the amount borrowed. For comparison, the same loan at 8% gives an EMI of about ₹25,093 and at 9% about ₹26,992. Enter these values in the calculator above to see the full schedule.

How Each EMI Splits Between Interest and Principal

The EMI stays the same, but its composition changes. Because interest is charged on the outstanding balance, early EMIs are mostly interest. In the example above:

• Month 1: ₹21,250 interest and only ₹4,785 principal.
• Year 1: about ₹2,52,709 interest against ₹59,707 of principal.
• First 10 years: about ₹22,23,978 interest and ₹9,00,185 principal, leaving roughly ₹20,99,815 still outstanding at the halfway point of the tenure.
• The principal portion first exceeds the interest portion in month 143 (year 12), and half the loan is repaid only by month 166.
• Month 240: about ₹183 interest and ₹25,852 principal.

This front-loading is why a prepayment made early in the tenure typically saves more interest than the same amount paid later.

EMI by Loan Amount and Tenure at 8.5%

Quick reference using the same formula at a constant 8.5% annual rate:

Monthly EMI figures are illustrative and assume a fixed 8.5% annual rate for the full tenure. Actual rates depend on the lender, loan type and your credit profile.

Tenure vs EMI, and the Effect of Prepayment

A longer tenure lowers the EMI but increases total interest. For the same ₹30 lakh at 8.5%:

• 10 years: EMI ₹37,196, total interest ₹14,63,485
• 15 years: EMI ₹29,542, total interest ₹23,17,594
• 20 years: EMI ₹26,035, total interest ₹32,48,327
• 25 years: EMI ₹24,157, total interest ₹42,47,044
• 30 years: EMI ₹23,067, total interest ₹53,04,266

Going from 20 to 30 years cuts the EMI by about ₹2,968 a month but adds roughly ₹20.6 lakh of interest.

A part-payment goes directly towards principal. For example, paying an extra ₹2,00,000 right after the 12th EMI on the 20-year loan above:

• Keep the EMI, shorten the tenure: the loan closes in about 206 months instead of 240 (34 fewer EMIs), saving roughly ₹6,87,516 in interest.
• Keep the tenure, lower the EMI: the EMI drops to about ₹24,264, saving roughly ₹2,03,763 in interest.

Lenders typically let you choose between these options. As of October 2026, RBI rules do not allow banks and NBFCs to levy foreclosure or prepayment charges on floating-rate term loans taken by individuals for non-business purposes, and the RBI (Pre-payment Charges on Loans) Directions, 2025 apply this across regulated lenders for loans sanctioned or renewed on or after 1 January 2026. Fixed-rate loans may still carry charges as per your loan agreement.

Home Loan Tax Deductions (as of October 2026)

From tax year 2026-27, the Income-tax Act, 2025 applies. Under the old tax regime, interest on a loan for a self-occupied house can be deducted up to ₹2,00,000 a year under section 22 (earlier section 24(b)), subject to conditions such as completing construction within five years. Principal repayment counts towards the ₹1,50,000 limit under section 123 (earlier section 80C). Under the default new tax regime (section 202), neither of these deductions is available for a self-occupied house. The calculator does not factor in any tax benefit.

What This Calculator Does NOT Model

• Processing fees and GST: one-time fees, plus GST charged on them, raise the real cost of borrowing.
• Loan insurance: premiums for credit-linked insurance, whether paid upfront or added to the loan, are excluded.
• Floating-rate resets: most Indian home loans are floating-rate. When the benchmark changes, your lender may revise the EMI, the tenure or both. The calculator assumes one fixed rate for the full tenure.
• Pre-EMI interest: for under-construction property, you may pay interest-only pre-EMIs on the amount disbursed so far before full EMIs begin.
• Stamp duty, registration and late-payment charges are also excluded.

This content is educational and not financial advice. The author is not a SEBI-registered investment adviser. Confirm final terms with your lender's sanction letter.

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