EMI Calculator

How to use this EMI calculator

1. Enter the loan amount you are borrowing. Leave out any down payment you are paying yourself.
2. Enter the interest rate as a yearly rate on a reducing balance, which is how EMIs are worked out. If the lender has quoted a flat rate, read the section on flat rates below first.
3. Set the loan tenure and use Tenure in to switch between years and months, whichever your loan offer uses.
4. Open "More options" to choose your first EMI month or add a part-prepayment each month on top of the EMI.

The result shows your monthly EMI, the total interest, the total of EMIs, the month the loan ends and interest as a share of the loan. It also shows what your EMI would be if the same rate were quoted flat. Below that is an EMI schedule: every EMI for loans of up to 120 EMIs, and a yearly summary for longer ones.

The EMI formula

The formula sets one fixed EMI that clears the loan exactly by the last month. Every month, interest is charged on the balance still outstanding, and whatever is left of the EMI reduces the principal. Because the balance is highest at the start, early EMIs are mostly interest; by the final year almost all of each EMI goes to principal.

EMI by loan amount and tenure

EMIs at 10.5% a year over 5 years:

And a ₹5 lakh loan at 10.5% over different tenures:

Moving from 3 years to 7 years roughly halves the EMI but adds ₹1,23,104 of interest. Choose the shortest tenure whose EMI you can manage comfortably, and keep some room in your budget for emergencies.

Flat rate vs reducing balance

Indian loans are repaid in monthly EMIs on a reducing balance, but some personal and car loans are advertised at a flat rate. A flat rate charges interest on the full amount for the whole tenure, even though you repay part of the principal every month, so it costs much more than the same reducing-balance rate.

On ₹5 lakh at a 10.5% flat rate for 5 years, the interest is ₹5,00,000 × 10.5% × 5 = ₹2,62,500, and the EMI is (₹5,00,000 + ₹2,62,500) ÷ 60 = ₹12,708.33. That is ₹1,17,683 more interest than the reducing-balance loan, and close to the EMI of ₹12,696.71 you would pay at 18% on a reducing balance. The calculator shows this flat-rate EMI with every result, so always ask which kind of rate you are being quoted.

Part-prepayment and foreclosure

Under RBI rules, lenders cannot charge prepayment or foreclosure fees on floating-rate loans taken by individuals for non-business purposes. Fixed-rate loans may carry a charge, so read your loan agreement before you prepay one.

Prepayments go straight to the principal, so every later EMI carries less interest. In the example above, paying an extra ₹2,000 a month clears the loan in 49 EMIs instead of 60, 11 months sooner, and saves ₹29,687 in interest. For a home loan, the home loan prepayment calculator models monthly and one-off part-prepayments in more detail.

Fees the EMI does not show

The EMI covers only principal and interest. If your loan carries a one-off processing fee, GST at 18% is charged on it too, and together they raise the true cost of the loan above the interest rate. The personal loan EMI calculator adds the fee and GST and works out the effective annual rate, and the loan comparison calculator puts two offers side by side. To work out GST on any other charge, use the GST calculator.

For a specific loan, the home loan EMI calculator adds property tax, society maintenance and RBI loan-to-value checks, and the car loan EMI calculator starts from the ex-showroom price. Before you apply, check how the new EMI affects your FOIR, the share of take-home pay lenders allow for EMIs.

This calculator gives estimates for education and planning. It is not financial advice, and your lender's figures may differ. See how we calculate.