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EMI Calculator

Calculate your Equated Monthly Installment for any loan

Find out your monthly EMI for home loans, car loans, or personal loans. Adjust the loan amount, interest rate, and tenure to plan your repayment.

₹
₹100,000₹100,000,000
%
1%20%
Yr
1 Yr30 Yr
Monthly EMI₹26,035
Total Interest₹32,48,327
Total Payment₹62,48,327

What is EMI?

EMI (Equated Monthly Installment) is a fixed payment amount made by a borrower to a lender at a specified date each month. Each EMI payment consists of two parts: principal repayment and interest payment. In the early years of a loan, a larger portion of your EMI goes toward interest. As the loan matures, more of your EMI goes toward repaying the principal.

Understanding your EMI helps you plan your monthly budget, compare loan offers from different banks, and decide on the optimal loan tenure that balances affordable monthly payments with total interest paid.

How to Use This EMI Calculator

  1. Enter your loan amount — the total amount you plan to borrow
  2. Set the annual interest rate offered by your bank (current home loan rates range from 8.25-9.5%)
  3. Choose your loan tenure in years (home loans up to 30 years, car loans 1-7 years)
  4. View your monthly EMI, total interest payable, and total payment amount

EMI Formula

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

Where:

Example: For a ₹30 lakh home loan at 8.5% for 20 years: P = 30,00,000, r = 0.00708, n = 240. EMI = approximately ₹26,035/month. Total interest paid = ₹32,48,445.

Frequently Asked Questions

How is EMI calculated?
EMI is calculated using the reducing balance method: EMI = P x r x (1+r)^n / ((1+r)^n - 1). Each month, the interest is calculated on the remaining principal, so as you pay down the loan, a larger portion of your EMI goes toward principal repayment.
Does prepayment reduce EMI or tenure?
When you make a prepayment, you can typically choose either option. Reducing tenure keeps your EMI the same but finishes the loan sooner — this saves more on total interest. Reducing EMI keeps the same tenure but lowers your monthly burden. Most financial advisors recommend reducing tenure for maximum savings.
What is a good EMI to salary ratio?
Financial experts recommend keeping your total EMI payments below 40-50% of your monthly take-home salary. Banks typically approve home loans where the EMI is up to 50-60% of net income, but a lower ratio gives you more financial flexibility. For home loans specifically, the EMI should ideally be under 30% of gross income.

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