EMI Calculator
Enter the loan amount, annual interest rate and tenure in months. The calculator shows your monthly EMI, total interest and total repayment using the standard reducing-balance formula lenders use.
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How is EMI calculated?
EMI is calculated with the formula EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly instalments. For ₹5,00,000 at 9.5% over 60 months, the EMI is about ₹10,501.
How to use this EMI calculator
This EMI calculator needs three inputs. Loan amount is the principal you borrow, entered in your own currency. Interest rate is the annual rate quoted by your lender, such as 8.5 or 9.5. Tenure is the length of the loan in months, so a 20-year home loan is 240 months.
The result shows your monthly EMI, the total interest you will pay over the life of the loan, and the total of all payments. It works for home loans, car loans, two-wheeler loans, personal loans and education loans, as long as the loan uses equal monthly instalments on a reducing balance.
Outside India the same payment is usually called a monthly loan payment. Our loan payment calculator covers the same maths with a North American focus.
EMI calculation formula explained
An EMI, or equated monthly instalment, is a fixed payment that covers both interest and principal. Lenders calculate it with the reducing-balance formula, so each month you pay interest only on the principal still outstanding. The formula is EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1).
- Convert the annual rate to a monthly rate: divide by 12, then by 100. At 9.5% a year, r = 0.0079167.
- Convert the tenure into months. Five years is n = 60.
- Work out (1 + r)^n. Here, 1.0079167 to the power of 60 is about 1.605.
- Multiply the loan amount by r and by that result: 5,00,000 × 0.0079167 × 1.605 ≈ 6,353.
- Divide by ((1 + r)^n − 1), which is 0.605. The EMI is about ₹10,501.
Over 60 months you pay about ₹6,30,056 in total, of which about ₹1,30,056 is interest. The calculator above does this instantly for any amount, rate and tenure.
How does tenure change your EMI and total interest?
A longer tenure lowers the EMI but raises the total interest, often dramatically. On a ₹30 lakh home loan at 8.5%, stretching from 20 to 30 years cuts the EMI by about ₹3,000 a month but adds more than ₹20 lakh in interest. Choose the shortest tenure whose EMI still fits comfortably in your budget.
| Tenure | Monthly EMI | Total interest | Total payment |
|---|---|---|---|
| 10 years | ₹37,196 | ₹14,63,485 | ₹44,63,485 |
| 15 years | ₹29,542 | ₹23,17,594 | ₹53,17,594 |
| 20 years | ₹26,035 | ₹32,48,327 | ₹62,48,327 |
| 25 years | ₹24,157 | ₹42,47,044 | ₹72,47,044 |
| 30 years | ₹23,067 | ₹53,04,266 | ₹83,04,266 |
The interest rate matters too. On the same ₹30 lakh over 20 years, each half-point rise adds roughly ₹940 to ₹970 to the EMI and over ₹2 lakh to the total interest. At 8% the EMI is ₹25,093; at 9.5% it is ₹27,964.
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Why most of your early EMIs go to interest
In the early years, the outstanding principal is large, so most of each EMI is interest. On a ₹30 lakh loan at 8.5% for 20 years, the first EMI of ₹26,035 includes about ₹21,250 of interest and only about ₹4,785 of principal. The balance falls slowly at first, then faster as the interest portion shrinks.
This is why part-prepayments early in a loan save so much. Every extra rupee goes straight to principal and stops interest building on it for the rest of the tenure. The Reserve Bank of India does not allow banks and regulated lenders to charge foreclosure or prepayment penalties on floating-rate term loans taken by individuals for non-business purposes.
How much EMI can you afford?
Many lenders prefer total EMIs to stay within about 40% to 50% of your net monthly income, but a comfortable personal budget usually keeps them lower. A useful rule is to keep housing EMI under about 30% of take-home pay and all EMIs together under about 40%.
Before you sign, add the new EMI to your monthly plan in our monthly budget planner for India and check your total borrowing with the debt-to-income ratio calculator.
- Home loan. Longest tenures and lowest rates. Watch the total interest and consider part-prepayments.
- Car or two-wheeler loan. Shorter tenures, usually three to seven years. Include insurance and fuel in your budget, not just the EMI.
- Personal loan. Higher rates and short tenures. Compare the effective annual rate including processing fees; our guide to what APR means explains why.
- No-cost EMI. The interest is usually built into the price or offset by a lost discount. Check the processing fee and GST on it.
Tracking EMIs in your monthly budget
An EMI is a fixed need that arrives on the same date every month, so it belongs at the top of your budget. EMOH Pay's bill tracking reminds you before each EMI is due, and budgets show what is left for everything else. The app is free on iPhone, Android and the web and works in rupees and 147 other currencies.
Automatic bank sync is only available for Canadian banks, so in India you add EMIs and other expenses manually once and let reminders do the rest. See our budgeting app for India page and the budgeting worldwide guide.
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Get started free➜EMI Calculator: frequently asked questions
What is EMI?
EMI stands for equated monthly instalment. It is a fixed monthly payment that repays a loan over a set tenure, covering both interest and principal. The split changes each month even though the total stays the same.
Does this EMI calculator work for home loans and car loans?
Yes. It works for any loan with equal monthly instalments on a reducing balance, including home, car, two-wheeler, personal and education loans. Enter the amount, annual rate and tenure in months.
Is it better to choose a lower EMI or a shorter tenure?
A shorter tenure saves a large amount of interest, while a lower EMI eases monthly cash flow. Choose the shortest tenure whose EMI you can pay comfortably with room to save, and prepay when you can.
Does prepaying a loan reduce EMI or tenure?
Lenders usually let you choose. Keeping the EMI and reducing the tenure saves more interest; reducing the EMI gives more monthly breathing room. Floating-rate loans to individuals carry no prepayment penalty under RBI rules.
Can I use this EMI calculator in other currencies?
Yes. The formula is the same everywhere, so enter the loan amount in dollars, dirhams, pounds or any currency and the results come back in that currency.
Sources and further reading
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