FinCalc

EMI Calculator

Calculate monthly EMI, total interest, and view amortization schedule

₹
%
Yrs

Monthly EMI

₹26,035

Total Interest

₹32,48,327

Total Payment

₹62,48,327

Principal vs Interest

Yearly Payment Split

What is a EMI Calculator?

An EMI (Equated Monthly Installment) calculator helps you figure out exactly how much you'll pay every month for a home loan, car loan, personal loan, or any other type of loan. It uses the standard reducing-balance formula that Indian banks follow, where each EMI is split between principal repayment and interest — with interest dominating early payments and principal taking over later.

Knowing your EMI before you borrow lets you plan your monthly budget realistically. The amortization schedule shows you the exact principal-interest split for every single month, so you can see how much of your money is going toward actually paying off the loan versus servicing interest. This is especially useful when comparing offers from different lenders or deciding between a 15-year and 20-year tenure.

When to Use This Calculator

  • Planning a home loan — check if the EMI fits your monthly budget before applying
  • Comparing loan offers from multiple banks with different rates and tenures
  • Deciding between a shorter tenure (lower interest) vs longer tenure (lower EMI)
  • Understanding how much total interest you'll pay over the life of the loan
  • Checking the impact of a rate hike on your existing floating-rate loan EMI

Key Terms

EMI

Equated Monthly Installment — a fixed monthly payment that includes both principal repayment and interest, calculated using the reducing-balance method.

Reducing Balance

Interest calculation method where interest is charged only on the outstanding principal. As you repay principal each month, the interest portion of your EMI decreases.

Amortization Schedule

A month-by-month table showing the principal and interest components of each EMI payment, along with the remaining loan balance.

Loan Tenure

The total duration of the loan, usually expressed in years. Longer tenures reduce EMI but increase total interest paid.

Floating Rate

An interest rate that changes periodically based on a benchmark rate (like RBI's repo rate). Most Indian home loans are floating-rate.

Frequently Asked Questions

How is EMI calculated?+
EMI is calculated using the formula: EMI = P × r × (1+r)^n / ((1+r)^n − 1), where P is the principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the number of monthly installments. This is the standard reducing-balance method used by all Indian banks.
Does a longer tenure mean I pay more interest?+
Yes. A longer tenure reduces your monthly EMI, making it more affordable, but you end up paying significantly more in total interest. For example, a ₹50 lakh loan at 8.5% costs about ₹27 lakh in interest over 15 years, but about ₹42 lakh over 25 years.
What happens if interest rates increase on my floating-rate loan?+
When rates increase, banks typically keep your EMI the same but extend your loan tenure. Some banks increase the EMI instead. You can use this calculator to see the impact of a rate change on your EMI or check the Prepayment Calculator to see how extra payments can offset the increase.
Is this calculator accurate for all types of loans?+
This calculator uses the reducing-balance method, which is standard for home loans, car loans, and personal loans from banks and NBFCs in India. It does not apply to flat-rate loans (common in some vehicle financing and older schemes). Use our Flat vs Reducing Rate converter if your loan uses a flat rate.
Can I reduce my total interest payment?+
Yes — you can make prepayments (extra payments toward principal), opt for a shorter tenure, or negotiate a lower interest rate. Even small prepayments can save lakhs in interest. Check our Prepayment Calculator to see exactly how much you'd save.