How do I use the EMI calculator?

1. Choose the loan type: Select Home, Personal, Car, or Education to load a sensible starting amount, rate, and tenure. You can edit all inputs after choosing the preset. 2. Enter the loan amount: Use the principal you will borrow from the lender. For a home purchase, this is the loan amount, not the full property value. 3. Set interest rate and tenure: Enter the annual reducing-balance interest rate and repayment tenure. Small rate differences can become material over long home loan tenures. 4. Add prepayment if relevant: If you plan to pay extra, enter the amount and frequency. The calculator applies prepayment immediately according to the selected schedule. 5. Review EMI and amortization: Check the EMI, total interest, total amount payable, and the year-by-year split between principal, interest, prepayment, and balance.

How is EMI calculated?

EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ - 1) The calculator builds a reducing-balance amortization schedule. Each month, interest is charged on the remaining balance, the rest of the EMI reduces principal, and any prepayment further reduces the balance. Suppose you take a ₹50,00,000 home loan for 20 years at 8.5% per annum with no prepayment. The EMI is ₹43,391, and over 240 months the interest adds up to ₹54,13,879. Total repayment becomes ₹1,04,13,879, which is why tenure and rate discipline matter as much as loan eligibility.

Should I prepay my loan?

Prepaying your loan can save you significant interest, especially in the early years when the interest component of your EMI is highest. However, check if your lender charges a prepayment penalty (most floating-rate home loans in India have no prepayment penalty as per RBI guidelines). Use the prepayment feature above to see exactly how much you'd save.

What is the difference between flat rate and reducing balance?

This calculator uses the reducing balance method, which is what banks in India use. In this method, interest is calculated on the outstanding balance each month (which decreases as you pay EMIs). The flat rate method calculates interest on the original principal throughout — resulting in higher effective interest. Always compare loans using the reducing balance rate.

How does loan tenure affect total interest?

Longer tenure means lower EMI but significantly higher total interest. For example, a ₹50L home loan at 8.5% costs about ₹54L in interest over 20 years, but about ₹39L over 15 years. The trade-off is a higher monthly EMI. Use the slider above to find the right balance for your budget.

What is an amortization schedule?

An amortization schedule shows the month-by-month breakdown of each EMI into principal and interest components. In the early years, most of your EMI goes toward interest. Over time, the principal component increases. This is why prepaying early in the loan tenure saves the most interest.

Tools/

Loan EMI Calculator

Calculate your monthly EMI, total interest, and see the complete amortization schedule. Add prepayments to see how much time and interest you can save.

Loan Type

Loan Amount

₹1,00,000₹50,00,00,000

Interest Rate (p.a.)

1%20%

Loan Tenure

1 Yr30 Yrs

Prepayment (Optional)

Prepayment Amount

₹0₹25,00,000

Monthly EMI

₹43,391

for 20 years at 8.5% p.a.

Principal

₹50 L

Interest

₹54.1 L

Total Payable

₹1.04 Cr

Interest Share

52%

Amortization Schedule

Yearly Amortization Schedule

Year	Principal	Interest	Balance
1	₹99,511	₹4,21,182	₹49,00,489
2	₹1,08,308	₹4,12,386	₹47,92,181
3	₹1,17,880	₹4,02,813	₹46,74,300
4	₹1,28,301	₹3,92,394	₹45,46,000
5	₹1,39,640	₹3,81,053	₹44,06,359
6	₹1,51,983	₹3,68,710	₹42,54,375
7	₹1,65,416	₹3,55,277	₹40,88,957
8	₹1,80,040	₹3,40,653	₹39,08,918
9	₹1,95,952	₹3,24,741	₹37,12,965
10	₹2,13,274	₹3,07,419	₹34,99,691
11	₹2,32,125	₹2,88,568	₹32,67,566
12	₹2,52,643	₹2,68,051	₹30,14,923
13	₹2,74,976	₹2,45,720	₹27,39,949
14	₹2,99,278	₹2,21,414	₹24,40,670
15	₹3,25,733	₹1,94,961	₹21,14,937
16	₹3,54,524	₹1,66,169	₹17,60,412
17	₹3,85,862	₹1,34,833	₹13,74,550
18	₹4,19,968	₹1,00,724	₹9,54,582
19	₹4,57,088	₹63,605	₹4,97,492
20	₹4,97,492	₹23,202	₹0

About the EMI calculator

An EMI, or Equated Monthly Instalment, is the fixed monthly repayment you make on a loan. It combines interest on the outstanding balance with principal repayment, so the mix changes over time even when the monthly payment stays constant.

Use this calculator for home loans, personal loans, car loans, and education loans in India. It estimates the monthly EMI, total interest, total repayment, amortization schedule, and the effect of optional prepayments.

The projection assumes a reducing-balance loan at the annual rate you enter. Actual lender quotes can differ because of processing fees, insurance bundling, reset dates, floating-rate changes, penal charges, and repayment timing.

Frequently Asked Questions

Choose the loan type
Select Home, Personal, Car, or Education to load a sensible starting amount, rate, and tenure. You can edit all inputs after choosing the preset.
Enter the loan amount
Use the principal you will borrow from the lender. For a home purchase, this is the loan amount, not the full property value.
Set interest rate and tenure
Enter the annual reducing-balance interest rate and repayment tenure. Small rate differences can become material over long home loan tenures.
Add prepayment if relevant
If you plan to pay extra, enter the amount and frequency. The calculator applies prepayment immediately according to the selected schedule.
Review EMI and amortization
Check the EMI, total interest, total amount payable, and the year-by-year split between principal, interest, prepayment, and balance.

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

P is the loan principal
r is the monthly interest rate (annual rate ÷ 12, as a decimal)
n is the total number of monthly instalments
EMI is the fixed monthly payment before optional prepayments

The calculator builds a reducing-balance amortization schedule. Each month, interest is charged on the remaining balance, the rest of the EMI reduces principal, and any prepayment further reduces the balance.

Worked example

Suppose you take a ₹50,00,000 home loan for 20 years at 8.5% per annum with no prepayment.

Loan principal: ₹50,00,000
Interest rate: 8.5% p.a.
Tenure: 20 years (240 months)
Monthly EMI: ₹43,391
Total interest: ₹54,13,879
Total amount payable: ₹1,04,13,879

The EMI is ₹43,391, and over 240 months the interest adds up to ₹54,13,879. Total repayment becomes ₹1,04,13,879, which is why tenure and rate discipline matter as much as loan eligibility.

Most Indian bank loans use reducing-balance interest, which this calculator models. Flat-rate comparisons can understate the effective cost.
For floating-rate home loans, RBI rules generally restrict prepayment penalties for individual borrowers, but always confirm the latest lender terms.
EMI affordability should be judged against stable post-tax income, emergency reserves, and other obligations, not only lender-approved eligibility.
Processing fees, insurance, legal charges, and stamp duty are not included in the EMI formula, but they still affect your true borrowing cost.

Watch the loan shrink against your net worth

Finest tracks loans and credit cards alongside your assets, so every EMI shows up as progress, not just an outflow.

Track this loan in Finest

Loan EMI Calculator

Inputs

Results

Amortization Schedule

About the EMI calculator

Frequently Asked Questions

Watch the loan shrink against your net worth

Related calculators