EMI Calculator (Loan)
Enter the loan amount, annual interest rate, and tenure — we'll compute your monthly EMI, total interest paid over the loan, and a month-by-month amortisation schedule. Same formula used by every Indian bank for home, car, personal, and education loans.
Inputs
The EMI formula
EMI = P × r × (1+r)n / ((1+r)n − 1), where P = principal, r = monthly interest rate (annual rate ÷ 12 ÷ 100), and n = tenure in months. This is the "reducing balance" method used by all Indian banks since 1990s.
Tips
- For a home loan, prepayment in the first 5 years saves the most interest — interest is heavily front-loaded.
- Floating-rate loans recalibrate the EMI when the bank's benchmark (RLLR / MCLR) changes — this calculator assumes a fixed rate.
- Banks often quote a "rate" that excludes processing fee, GST, insurance bundling. Add 0.25–0.50% to compare apples to apples.
Frequently asked questions
Why does so much of my EMI go toward interest in the early years?▾
Because interest is computed on the OUTSTANDING balance every month. In month 1, you owe nearly the full principal, so the bulk of the EMI is interest. As the balance shrinks, more of each EMI eats into the principal. By the last year, almost the entire EMI is principal.
What if I want to prepay a lump sum?▾
Prepayment reduces the outstanding principal. You can either keep the EMI same (loan ends earlier) or recalibrate the EMI lower for the same tenure. Most home-loan prepayments save 2-3× the lump sum in long-run interest if done in the first half of the tenure.
Is the EMI shown here exactly what the bank will charge?▾
The EMI formula is industry-standard, so the principal & interest split should match within ₹1-2 of any bank's calculation. The TOTAL outflow may differ because banks add: processing fee (0.5-1%), GST on processing fee (18%), insurance bundling, and CIBIL-rate-linked premiums.
Does this work for foreign-currency loans?▾
Yes — the formula is currency-agnostic. Enter the principal in any currency and the same monthly rate logic applies. The summary will show the values in whatever currency you entered.