EMI Calculator
Calculate the EMI on a home, car or personal loan, the total interest you pay and a year-by-year repayment schedule — with prepayment savings.
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- Private — runs in your browser
= ₹50 lakh
Your monthly EMI
₹43,391
for 20 yr at 8.5% p.a.
Loan summary
- Principal₹50 lakh48%
- Interest₹54.14 lakh52%
How to use the EMI calculator
Pick the loan type (or just type your own numbers), then enter the loan amount, the annual interest rate your bank quoted and the tenure in years or months. The EMI, total interest and total amount payable update instantly.
Open Prepayment to see how an extra amount every month, or a one-time part-payment (say, your annual bonus), shortens the loan and how much interest it saves. Prepayments here keep the EMI the same and reduce the tenure, which saves the most interest. Use the yearly table to see how much of each year's EMIs goes to interest versus principal.
Formula
Banks in India use the reducing-balance method. The fixed monthly instalment is:
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)- P = loan amount (principal)
- r = monthly interest rate = annual rate ÷ 12 ÷ 100 (8.5% → 0.0070833)
- n = tenure in months
Each month, interest = outstanding balance × r, and the rest of the EMI repays principal. At 0% interest, EMI = P ÷ n. Example: ₹10 lakh at 10% for 20 years → EMI ≈ ₹9,650.
Lenders may round the EMI to the nearest rupee and charge broken-period interest for the first month, so your sanction letter can differ by a few rupees.
Frequently asked questions
How is home loan EMI calculated?
EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1), where P is the loan amount, r is the monthly rate (annual rate ÷ 1200) and n is the number of months. For a ₹50 lakh home loan at 8.5% for 20 years, the EMI is about ₹43,391 and the total interest is about ₹54.1 lakh.
What is the EMI for a 10 lakh loan?
At 10% for 5 years the EMI on ₹10 lakh is about ₹21,247; for 10 years about ₹13,215; and for 20 years about ₹9,650. Enter your exact rate and tenure above to get your figure.
Is it better to reduce EMI or tenure when I prepay?
Reducing the tenure while keeping the EMI unchanged saves more interest, because the balance falls faster. Reducing the EMI improves monthly cash flow but saves less. On floating-rate home loans taken by individuals, banks cannot charge a prepayment penalty under RBI rules.
Why is most of my early EMI going to interest?
Interest is charged on the outstanding balance, which is highest at the start. In a 20-year home loan, about 80% of the first year’s EMIs goes to interest at 8.5%. The principal share grows every month as the balance falls.
Does a longer tenure reduce the total cost of a loan?
No. A longer tenure lowers the EMI but increases the total interest paid, often dramatically. Going from 20 to 30 years on a home loan at 8.5% cuts the EMI by about 11% but adds over 60% more total interest.
Can I claim tax benefits on home loan EMI?
Under the old tax regime, principal repayment counts toward the ₹1.5 lakh Section 80C limit and interest on a self-occupied house is deductible up to ₹2 lakh a year under Section 24(b). The new regime does not allow these deductions for a self-occupied home.