Use this free EMI calculator to work out your monthly installment on a home, car, personal, or education loan. Enter your loan amount, interest rate, and tenure, and it instantly shows your monthly EMI, total interest, and total repayment, along with a chart showing how much of each payment goes toward principal versus interest.
How EMI is calculated
This calculator uses the standard reducing-balance EMI formula:
EMI = [P × R × (1 + R)ⁿ] / [(1 + R)ⁿ − 1]
Where P is the loan amount (principal), R is the monthly interest rate (your annual rate divided by 12 and by 100), and N is the loan tenure in months.
For a ₹10,00,000 loan at 8% annual interest over 20 years (240 months), the monthly rate works out to 0.667%. Running that through the formula gives an EMI of about ₹8,364. Over 240 months that’s a total repayment of roughly ₹20,07,456 — meaning about ₹10,07,456 of that is interest, slightly more than the principal itself.
What changes your EMI
Three inputs control your EMI, and each pulls in a different direction. A larger loan amount increases your EMI roughly in proportion. A higher interest rate increases it too, and the effect compounds over a long tenure — even a small difference in rate can add up to a meaningful amount over 20 years. Tenure works the other way: stretching a loan from 10 years to 20 years lowers your monthly EMI, but you’ll pay more total interest over the life of the loan, since you’re borrowing the lender’s money for longer. As a rough budgeting rule, most lenders prefer your combined EMIs across all loans to stay under 40-50% of your monthly income — try a few tenure lengths in the calculator above to see where your EMI lands relative to that.
Fixed-rate vs. floating-rate loans
This calculator assumes the interest rate you enter stays the same for the full tenure, which matches how a fixed-rate loan works. Most home loans in India, though, are floating-rate — tied to an external benchmark that the lender can adjust periodically. If your rate changes after you take the loan, your actual EMI (or the remaining tenure, depending on how your lender handles it) will differ from what this calculator shows today. Re-run the numbers with your updated rate any time it changes.
What this calculator doesn’t include
The EMI figure here covers principal and interest only. It doesn’t add the lender’s processing fee, which is typically 0.5-1% of the loan amount and charged upfront, separate from your EMI. It also doesn’t include loan insurance if your lender bundles it in, or prepayment charges if you pay off part of the loan early — many lenders don’t charge a penalty for prepaying a floating-rate retail loan, but it’s worth confirming your specific terms. And this tool tells you what a loan would cost, not whether you’d be approved for it — eligibility depends on your income, credit score, and existing obligations, which the lender assesses separately.
Frequently asked questions
Does the EMI include processing fees or insurance?
No — it’s principal and interest only. Add any processing fee or insurance cost separately when budgeting for the loan.
What’s a comfortable EMI compared to my income?
Most lenders look for your total EMIs across all loans to stay under roughly 40-50% of your monthly income. Staying well below that gives you more room if your income or expenses change.
Will my EMI change if interest rates move?
Only if you have a floating-rate loan and your lender adjusts the rate. This calculator assumes whatever rate you enter stays fixed for the entire tenure you select.
Does a longer tenure always mean a better deal?
It lowers your monthly EMI, but you’ll pay more total interest over the life of the loan. There’s a real trade-off between monthly affordability and total cost — neither option is simply “better.”
Can I use this for a car loan or personal loan, not just a home loan?
Yes. The EMI formula and this calculator work the same way for any loan repaid in equal monthly installments, regardless of loan type.
