India's Most Advanced EMI Calculator

EMI Calculator

Calculate EMI for any loan instantly. Prepayment planner, rate comparison, affordability check & full amortization schedule.

All Calculators EMI Guide

EMI Calculator

📖 Guide
₹25,00,000
₹50K₹5 Cr
8.50%
0.5%40%
20 Years

EMI = P × r × (1+r)n / ((1+r)n − 1)  |  Reducing balance method

Monthly EMI
₹0
Total Interest
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Total Payment
₹0
True Cost (incl. fees)
₹0
Processing Fee
₹0
Principal %
0%
Interest %
0%

📊 Yearly Principal vs Interest Breakdown

📅 Month-by-Month Amortization

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⚡ Prepayment Planner

See how extra payments can save you lakhs in interest and cut years off your tenure.

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Pro Tip

RBI mandates zero prepayment penalty on floating rate loans. Use your annual bonus or tax refund as lump sum prepayment for maximum savings.

Prepayment Impact

New Tenure
0
Time Saved
0
Interest Saved
₹0
Total Prepaid
₹0
Original Interest
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New Interest
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✅ Can You Afford This EMI?

Check maximum loan eligibility based on your income using the FOIR method banks use in India.

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What is FOIR?

Fixed Obligation to Income Ratio. Banks typically allow 40-60% of your monthly income towards all EMIs combined. A lower FOIR means more disposable income and better loan eligibility.

Your Eligibility

Max EMI You Can Afford
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Max Loan Eligible
₹0
Your Current EMI
₹0
EMI as % of Income
0%
Income Allocation
Existing EMIs This Loan EMI Expenses Savings

📊 How Interest Rate Affects Your EMI

See the dramatic impact of even 0.5% rate difference on your total cost

EMI vs Interest Rate

Reference

Indicative Loan Interest Rates in India

Approximate rates — actual rates depend on credit score, bank, loan amount & tenure

Loan Type Rate Range Typical Tenure Collateral Tax Benefit
🏠 Home Loan 8.25% – 9.50% Up to 30 years Property Sec 80C + 24(b)
🚗 Car Loan 7.50% – 12.00% 1 – 7 years Vehicle None (Business only)
💳 Personal Loan 10.50% – 24.00% 1 – 5 years Unsecured None
🎓 Education Loan 7.00% – 13.00% Up to 15 years Varies Section 80E (full)
🥇 Gold Loan 7.00% – 15.00% 6 months – 3 years Gold None
🏍️ Two Wheeler 8.00% – 18.00% 1 – 5 years Vehicle None
💼 Business Loan 12.00% – 24.00% 1 – 5 years Varies Interest deductible

Understanding EMI

Everything you need to know about Equated Monthly Installments

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The EMI Formula

EMI = P × r × (1+r)n / ((1+r)n − 1), where P = principal, r = monthly rate (annual rate ÷ 12 ÷ 100), n = total months. This is the standard reducing balance method used by all Indian banks.

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How EMI Changes Over Time

Your EMI stays the same but its composition changes. Initially, most of the EMI goes towards interest. Over time, the principal component increases and interest decreases as outstanding balance reduces.

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Smart EMI Tips

  • Prepay with bonuses to slash interest
  • Shorter tenure = more EMI but less interest
  • Compare banks before locking a rate
  • Keep total EMIs under 40% of income
  • Consider balance transfer if rates drop
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Home Loan EMI

Longest tenure (up to 30 yrs), lowest rates (8-9.5%). Tax benefits on both principal (Sec 80C, ₹1.5L) and interest (Sec 24b, ₹2L). PMAY subsidy available for first-time buyers.

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Car Loan EMI

Secured by vehicle (7-12% rate). Keep tenure under 5 years to avoid paying more in interest than the car depreciates. No tax benefits for personal use.

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Personal Loan EMI

Highest rates (10.5-24%) as it's unsecured. Best for emergencies or short-term needs. Always compare with credit line or gold loan before taking one.

Got Questions?

Frequently Asked Questions

What is EMI and how is it calculated? ▼
EMI stands for Equated Monthly Installment. It is the fixed amount you pay to the bank every month to repay your loan. The EMI is calculated using the reducing balance method:

EMI = P × r × (1+r)n / ((1+r)n − 1)

Where P = loan principal, r = monthly interest rate (annual rate ÷ 12 ÷ 100), and n = total number of monthly installments. Each EMI consists of an interest component and a principal repayment component.
How can I reduce my total interest payment? ▼
There are several strategies to reduce total interest:
  • Prepayments: Even ₹5,000/month extra can save lakhs over the loan tenure
  • Shorter tenure: A 15-year home loan pays far less interest than a 30-year one
  • Larger down payment: Reduces the principal, directly cutting interest
  • Balance transfer: Switch to a bank offering a lower rate
  • Negotiate rates: Banks often offer better rates to existing customers or those with high credit scores (750+)
What is the difference between flat rate and reducing balance? ▼
In flat rate, interest is charged on the original loan amount for the entire tenure — making the effective interest rate roughly double.

In reducing balance (used by most Indian banks), interest is charged only on the outstanding principal, which decreases each month as you repay. This results in significantly lower total interest. Our calculator uses the reducing balance method, which is the standard in India.
Is there a penalty for prepaying my loan? ▼
As per RBI guidelines, banks cannot charge any prepayment penalty on floating rate home loans, personal loans, or any retail loans. For fixed rate loans, banks may charge up to 2% of the prepaid amount. Always check your loan agreement for specific terms.
What percentage of my income should go towards EMI? ▼
Financial experts recommend keeping your total EMI burden below 40-50% of your net monthly income (called FOIR — Fixed Obligation to Income Ratio). For comfortable finances:
  • Ideal: Total EMIs < 30% of net income
  • Manageable: Total EMIs between 30-40%
  • Stretched: Total EMIs between 40-50%
  • Risky: Total EMIs > 50% (not recommended)
Use our Affordability Check tab to see where you stand.
How does loan tenure affect EMI and total cost? ▼
Longer tenure = Lower EMI but Higher total interest. For example, a ₹25L home loan at 8.5%:
  • 10 years: EMI ₹31,001 — Total interest ₹12.2L
  • 20 years: EMI ₹21,701 — Total interest ₹27.1L
  • 30 years: EMI ₹19,219 — Total interest ₹44.2L

The 30-year loan has a 38% lower EMI but costs ₹32L more in interest! Use the Rate Compare tab to see these trade-offs visually.
What is processing fee and should I factor it in? ▼
Processing fee is a one-time charge by the bank for processing your loan application, typically 0.5% to 2% of the loan amount + GST. While it doesn't affect your EMI, it increases the true cost of borrowing. Always negotiate this fee — many banks waive it during festive seasons or for premium customers. Our calculator shows the "True Cost" including processing fees.