EMI Calculator
Work out your monthly EMI, total interest and repayment schedule.
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Monthly EMI
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- Principal
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- Total interest
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- Total payment
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Repayment schedule
How to use EMI Calculator
- Enter the loan amount in rupees. Drag the slider for a rough figure or type an exact one.
- Add the yearly interest rate your bank quoted, for example 8.75.
- Set the tenure in years or in months, whichever the bank used.
- Read the EMI, total interest and total payment. They update as you type.
- Open the repayment schedule to see how each year splits between interest and principal.
The formula
EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1). P is the loan amount, n is the number of monthly instalments, and r is the monthly rate, which is the yearly rate divided by 12 and then by 100. An 8.75% loan has a monthly rate of 0.0072917.
Interest each month is charged on what you still owe, not on the original amount. That is why early instalments are mostly interest and later ones are mostly principal, and why a prepayment in year three saves far more than the same amount paid in year fifteen.
A worked example
A ₹25,00,000 home loan at 8.75% for 20 years gives an EMI of about ₹22,093. Over 240 months you pay back roughly ₹53,02,000, of which about ₹28,02,000 is interest. That is more than you borrowed. Cut the tenure to 15 years and the EMI rises to about ₹24,986, but total interest falls to roughly ₹19,97,500, saving around ₹8 lakh.
Open the repayment schedule to see this play out. In year one about ₹2,16,000 of your ₹2,65,000 in instalments goes to interest. In the last year almost all of it cuts the principal.
What is not included
- Processing fees, documentation charges, legal and valuation fees, and stamp duty. Lenders often deduct these from what they give you, so you receive slightly less than you borrowed.
- Bundled insurance premiums, which some lenders add to the loan and then charge interest on.
- Interest for the broken period between the disbursal date and your first EMI date.
- Rate changes. A floating-rate loan is shown as if today's rate held for the whole tenure. Run it again two percentage points higher to see how much room your budget has.
- Tax relief on home loan interest and principal, which depends on your own situation.
These figures are estimates for planning. Confirm the exact schedule with your lender before you sign anything. See the disclaimer.
Frequently asked questions
How is EMI calculated?
EMI = P x r x (1 + r)^n / ((1 + r)^n - 1). P is the loan amount, n is the number of monthly instalments, and r is the monthly rate, which is the yearly rate divided by 12 and then by 100.
Is this a flat rate or a reducing balance calculation?
Reducing balance, which is what banks use for home, car and personal loans. Interest each month is charged only on what you still owe, so the interest part of your EMI shrinks over time.
Does the EMI include processing fees or insurance?
No, it is the loan repayment only. Processing fees, documentation charges, stamp duty and bundled insurance are separate, and lenders often deduct them from the amount they give you.
What happens if I make a part-prepayment?
Your outstanding principal drops straight away, so the remaining interest falls sharply. Most lenders let you either keep the EMI and shorten the tenure, or keep the tenure and lower the EMI. Shortening the tenure saves far more.
Why does my bank quote an EMI a few rupees different?
Lenders round differently, may charge broken-period interest before your first due date, and some work on a daily rest. A gap of a few rupees is normal. A gap of hundreds usually means the rate or tenure you typed is not the one in your sanction letter.
Can I use this for a floating rate home loan?
Yes, as a snapshot at today rate. The schedule shows what would happen if the rate never changed. Run it again one or two percentage points higher to see how much room your budget has.