EMI Calculator
Work out the monthly instalment on a home, car or personal loan, see how much of it goes to interest, and view the full repayment schedule year by year.
| Year | Principal paid | Interest paid | Total paid | Balance |
|---|
Understanding your loan EMI
EMI stands for Equated Monthly Instalment. It is the fixed amount you pay your lender on the same date every month until the loan is fully repaid. Each instalment contains two parts: interest on the outstanding balance, and a repayment of the principal itself.
The instalment stays constant, but the split inside it shifts over time. In the early years most of your payment covers interest because the outstanding balance is large. As the balance falls, more of each instalment goes towards principal. This is why prepaying early in the tenure saves far more interest than prepaying near the end.
The EMI formula
For a ₹30,00,000 home loan at 8.5% over 20 years: r works out to 0.00708 and n to 240. Put those into the formula and the EMI comes to roughly ₹26,035. Over the full tenure you repay about ₹62,48,400, of which ₹32,48,400 is interest.
Typical interest rates by loan type
| Loan type | Rate range | Usual tenure | Secured? |
|---|---|---|---|
| Home loan | 8.1% to 9.5% | 15 to 30 years | Yes, against the property |
| Loan against property | 9% to 11% | 10 to 15 years | Yes |
| Car loan | 8.5% to 12% | 3 to 7 years | Yes, against the vehicle |
| Education loan | 8.5% to 14% | 5 to 15 years | Sometimes |
| Gold loan | 9% to 16% | 6 months to 3 years | Yes, against gold |
| Personal loan | 10.5% to 24% | 1 to 5 years | No |
| Credit card EMI | 13% to 30% | 3 to 24 months | No |
Rates as of October 2026. Your actual rate depends on your credit score, income, employer category and the lender's internal policy. Always ask for a written sanction letter.
What moves your EMI
- Loan amount. The EMI scales almost linearly with the principal. Borrowing 20% less cuts the EMI by roughly 20%.
- Interest rate. On a 20-year home loan, each 0.5% increase in rate raises the EMI by about 3.5% and adds significantly to total interest.
- Tenure. Stretching the tenure lowers the monthly outgo but increases total interest, sometimes dramatically.
- Credit score. A CIBIL score above 750 typically earns the lender's best published rate. Below 700, expect a premium of 0.5% to 2%.
- Rate type. Floating rates move with the lender's benchmark. Fixed rates stay constant but usually start higher.
How tenure changes the arithmetic
On a ₹30,00,000 loan at 8.5%, here is what different tenures cost you:
| Tenure | Monthly EMI | Total interest | Total repaid |
|---|---|---|---|
| 10 years | ₹37,194 | ₹14,63,280 | ₹44,63,280 |
| 15 years | ₹29,542 | ₹23,17,560 | ₹53,17,560 |
| 20 years | ₹26,035 | ₹32,48,400 | ₹62,48,400 |
| 25 years | ₹24,161 | ₹42,48,300 | ₹72,48,300 |
| 30 years | ₹23,067 | ₹53,04,120 | ₹83,04,120 |
Moving from 20 years to 30 years reduces the EMI by about ₹2,968 a month, but costs an extra ₹20,55,720 in interest. Choose the shortest tenure your monthly budget can comfortably absorb.
Practical ways to reduce your interest bill
- Build your credit score above 750 before applying, then negotiate on rate.
- Make a larger down payment so you borrow less in the first place.
- Choose the shortest tenure you can service without straining your budget.
- Prepay whenever you receive a bonus. Early prepayments cut interest the most.
- Pay one extra EMI each year. On a 20-year loan this can shorten it by roughly three years.
- Compare at least three lenders, and consider a balance transfer if another offers 0.5% less.
- Ask about the total cost including processing fees, valuation charges and insurance, not just the rate.
Charges beyond the EMI
- Processing fee: usually 0.25% to 2% of the loan amount, often capped.
- Legal and technical valuation: a few thousand rupees on secured loans.
- Loan protection insurance: optional, but frequently bundled into the disbursement.
- Prepayment charges: nil on floating-rate home loans for individuals, but fixed-rate and personal loans may attract 2% to 5%.
- Late payment penalty: typically 1% to 2% per month on the overdue amount, plus a hit to your credit score.
The 40% rule. Keep the total of all your EMIs under about 40% of your take-home pay. Lenders apply a similar test when assessing eligibility, and staying below it leaves you room to save and handle emergencies.
Tax relief on loan repayment
Under the old tax regime, home loan principal repayment qualifies under Section 80C up to ₹1,50,000 a year, and interest on a self-occupied property qualifies under Section 24(b) up to ₹2,00,000. Education loan interest is deductible under Section 80E with no upper limit for up to eight years. The new regime does not allow these deductions for self-occupied property, which is worth factoring in when you compare regimes in the Income Tax Calculator.
Frequently asked questions
An Equated Monthly Instalment is the fixed amount you pay your lender on the same date each month until the loan is repaid. Each instalment contains interest on the outstanding balance plus a repayment of principal. The instalment stays constant, but the split inside it shifts towards principal over time.
The formula is EMI = P x r x (1+r)^n / ((1+r)^n - 1), where P is the principal, r is the monthly interest rate (annual rate divided by 12 and then by 100), and n is the number of monthly instalments. Our calculator applies this exact formula, which is the same reducing-balance method banks use.
On a fixed-rate loan the EMI stays the same throughout. On a floating-rate loan, the lender may either revise the EMI or extend the tenure when its benchmark rate moves. Most Indian home loans are floating rate, so expect some variation over a twenty-year term.
Yes, and it helps most in the early years. Because early instalments are mostly interest, a prepayment made in year two removes far more future interest than the same amount paid in year fifteen. Floating-rate home loans for individuals carry no prepayment penalty.
A widely used guideline is to keep total EMIs across all loans below 40% of your take-home pay. Lenders apply a similar test when assessing eligibility. Staying under that leaves room for savings, insurance premiums and unexpected expenses.
Processing fees of roughly 0.25% to 2% of the loan, legal and technical valuation charges on secured loans, optional loan protection insurance, and stamp duty on the loan agreement in some states. Ask for the total cost, not just the interest rate.