Tools To India

EMI Calculator

Enter the loan amount, interest rate and tenure to see your monthly instalment, how much of it is interest, and how the balance falls year by year.

Last updated

₹10 Lakh · The amount the lender actually disburses, after deducting any processing fee taken up front.

The rate on your sanction letter, not the flat rate a dealer may quote.

Longer tenure means a smaller instalment but noticeably more interest.

The result updates as you type. Nothing you enter is saved, sent to a server or shared.

Monthly EMI

₹20,758.36

5 years at 9% a year, on a monthly reducing balance

What you repay

  • Principal: ₹10,00,000
  • Interest: ₹2,45,501
Loan amount
₹10,00,000
Total interest payable
₹2,45,501
Total amount payable
₹12,45,501
Interest as a share of what you repay
19.71%
  • Assumes a fixed rate for the whole tenure and that every instalment is paid on time.
  • Processing fees, documentation charges, insurance premiums and GST on fees are not included — ask your lender for the annual percentage rate covering all of them.

Year-by-year repayment schedule

Year-by-year repayment schedule
YearPrincipal paidInterest paidBalance left
1₹1,65,830₹83,270₹8,34,170
2₹1,81,386₹67,714₹6,52,784
3₹1,98,401₹50,699₹4,54,383
4₹2,17,013₹32,088₹2,37,370
5₹2,37,370₹11,730₹0

How this calculator works

An EMI is a fixed monthly payment that clears both interest and principal by the end of the tenure. The size of that payment comes from three numbers and nothing else: how much you borrow, the rate you are charged, and how long you take.

Indian retail lenders charge interest on a monthly reducing balance. Each month, interest is calculated on what you still owe at the start of that month. Whatever is left of the instalment after paying that interest reduces the principal. Because the principal shrinks a little each month, the interest charged shrinks too, and a larger slice of the next instalment goes to principal.

The consequence is that the interest you pay is very sensitive to tenure. Stretching a loan from 15 years to 20 years lowers the instalment by a comfortable-looking amount, but the extra five years of interest usually costs far more than the monthly relief is worth. The schedule below the result shows exactly where that money goes.

The formula

Equated monthly instalment

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

P
Principal — the amount actually disbursed to you
r
Monthly interest rate = annual rate ÷ 12 ÷ 100
n
Tenure in months

Every retail lender in India quotes EMI on a monthly reducing balance. Interest for a month is charged on the balance outstanding at the start of that month, so the interest portion of each instalment falls and the principal portion rises, even though the instalment itself never changes.

How one instalment splits

Interest this month = outstanding balance × r Principal this month = EMI − interest this month

This is why the early years of a long loan barely dent the principal. On a 20-year home loan, roughly two-thirds of the first instalment is interest.

Worked example: a ₹10 lakh loan at 9% for 5 years

Ravi borrows ₹10,00,000 at 9% a year for 5 years. The monthly rate is 9 ÷ 12 ÷ 100 = 0.0075, and the tenure is 60 months.

Step-by-step calculation for the worked example
Principal (P)₹10,00,000
Monthly rate (r)0.0075
Tenure (n)60 months
(1 + r)ⁿ1.5657
EMI = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1)₹20,758
Total paid over 60 months₹12,45,499
Total interest₹2,45,499

Ravi repays ₹2.45 lakh in interest — about 20% of everything he pays. In the first instalment ₹7,500 is interest and only ₹13,258 reduces the loan; by the final instalment almost the whole amount is principal.

Things worth knowing

  • The rate matters less than you think over short tenures and far more over long ones. On a 5-year loan, one extra percentage point costs a few thousand rupees. On a 20-year home loan it can cost more than a year of instalments.
  • A flat rate is not the same as a reducing-balance rate. A "flat 8%" on a car loan is roughly 14–15% on a reducing balance, because you keep paying interest on the full original amount even after repaying most of it. Always ask for the reducing-balance rate.
  • Processing fees, documentation charges, insurance sold alongside the loan and GST on those fees are all real costs that this calculator does not include. Ask the lender for the annual percentage rate that folds them in.
  • Floating-rate loans in India are linked to an external benchmark, usually the RBI repo rate. When the benchmark moves, lenders typically keep the EMI fixed and change the tenure instead — so a rate rise may quietly add years to your loan rather than rupees to your instalment.
  • Missing instalments triggers penal charges and is reported to credit bureaus. If repayment becomes difficult, speak to the lender before you default; restructuring is usually possible, recovering a damaged credit score is slow.

Frequently asked questions

Is the EMI the same every month?
On a fixed-rate loan, yes. The instalment stays constant; what changes is the split inside it, with interest falling and principal rising each month. On a floating-rate loan the instalment usually stays the same too, but the lender adjusts the tenure when the benchmark rate moves.
Should I choose a longer tenure to get a smaller EMI?
Only if the shorter tenure genuinely does not fit your monthly budget. A longer tenure lowers the instalment but raises total interest substantially, because you are borrowing the same money for more years. A useful rule is to take the shortest tenure whose EMI you can pay comfortably even in a bad month.
Does prepaying a loan actually help?
Yes, and the earlier the better, because early instalments are mostly interest. Prepaying reduces the outstanding principal, so every future month is charged interest on a smaller balance. Ask your lender to keep the EMI unchanged and shorten the tenure — that saves more than reducing the EMI. Floating-rate home loans to individuals cannot be charged a foreclosure penalty.
Why does my bank statement show a slightly different EMI?
Lenders round the instalment, may charge broken-period interest between disbursal and the first due date, and sometimes add insurance premiums to the loan. Those differences are usually small. If the gap is large, ask for the sanction letter and the amortisation schedule and compare line by line.
What is a comfortable EMI relative to income?
Most lenders will not let total EMIs across all your loans exceed roughly 50–60% of net monthly income, and many keep it lower for larger loans. That is an underwriting ceiling, not a recommendation — leaving room for an emergency fund and irregular expenses matters more than borrowing the maximum you are offered.

Sources

Every figure on this page is traceable to the official source below. If a source has changed since the date shown, please tell us and we will correct it.