EMI Calculator — Home Loan, Car Loan & Personal Loan
Calculate your exact monthly EMI, total interest payable and full amortization schedule for any loan. Covers home loans, car loans, personal loans and education loans with current Indian bank rates. Compare EMI across different interest rates. Free, instant, no signup.
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EMI Calculator — How It Works & Common Questions
EMI stands for Equated Monthly Instalment — the fixed monthly payment you make to repay a loan. Each EMI has two parts: interest (calculated on the outstanding balance) and principal repayment. In early months, most of your EMI goes towards interest. As the loan progresses, more goes towards principal. This calculator uses the standard Indian banking formula and shows you the exact month-by-month breakdown for the entire loan tenure.
EMI Formula
EMI = P × r × (1+r)^n / ((1+r)^n − 1)
P = Principal loan amount | r = Monthly interest rate (annual% ÷ 12 ÷ 100) | n = Tenure in months
Frequently Asked Questions
What is EMI and how is it calculated?
EMI (Equated Monthly Instalment) is the fixed amount you pay every month to repay a loan. It 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 months.
What is the EMI for a ₹50 lakh home loan for 20 years at 8.5%?
At 8.5% p.a. for 20 years (240 months), the monthly EMI for a ₹50 lakh home loan is approximately ₹43,391. The total payment over 20 years would be around ₹1.04 crore, of which ₹54 lakhs would be interest. Use this calculator to see the exact amortization schedule.
What is a good EMI to salary ratio in India?
Banks typically approve loans where your total EMI outgo (all loans combined) is below 50% of your gross monthly income. This is called FOIR (Fixed Obligation to Income Ratio). Ideally, keep total EMIs at 35–40% of income to maintain financial flexibility and emergency savings.
Should I choose a shorter or longer loan tenure?
A shorter tenure means higher EMI but less total interest paid. A longer tenure means lower EMI but significantly more interest over the life of the loan. For example, a ₹30 lakh home loan at 8.5% for 10 years has EMI of ₹37,194 with total interest ₹14.6L. For 20 years, EMI is ₹26,035 but total interest is ₹32.5L — more than double.
What happens if I make a prepayment on my home loan?
Prepayment directly reduces your outstanding principal. Banks offer two options: reduce the remaining tenure (saves more total interest — recommended) or reduce the monthly EMI (improves cash flow). For home loans, you can also claim tax deduction on principal under Section 80C (up to ₹1.5L) and on interest under Section 24B (up to ₹2L).
What is the current home loan interest rate in India?
As of 2025, home loan interest rates in India range from 8.35% to 9.5% p.a. depending on the lender, loan amount and borrower credit profile. SBI offers rates from 8.5%, HDFC from 8.65% and LIC HFL from 8.5%. Rates are linked to the RBI repo rate and can change with monetary policy.
