paisatools Buy me a coffee

EMI Calculator for Home, Car and Personal Loans

Enter your loan amount, interest rate and tenure to see your monthly EMI, the total interest you'll pay and how your loan balance falls each year.

₹
₹50K₹2 Cr
%
5%24%
1 yr30 yrs
Your monthly EMI
₹0 /month
Interest 0%
Principal₹0
Total interest₹0
Total amount payable₹0

What you pay each year

In the early years most of your EMI goes to interest. The principal share grows every year as your balance falls.

Year-wise repayment schedule

YearPrincipal paidInterest paidTotal paidBalance leftLoan repaid

How is EMI calculated?

EMI stands for Equated Monthly Instalment. It is the fixed amount you pay your bank every month until the loan is closed. Each EMI has two parts: interest on the balance still outstanding, and a repayment of principal. Banks in India use the reducing-balance method, so interest is charged only on what you still owe.

EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1) P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly instalments.

Worked example

Three ways to lower your EMI or total interest

  • Make part-prepayments. Paying extra towards principal, especially in the first few years, cuts total interest sharply. Most banks allow this without charges on floating-rate home loans taken by individuals.
  • Choose a shorter tenure if you can afford it. A higher EMI over fewer years means far less interest overall.
  • Compare lenders and negotiate. A difference of even 0.5% in the rate adds up to lakhs over a 20-year home loan. Your credit score strongly affects the rate you are offered.

Frequently asked questions

Does a longer tenure reduce my EMI?

Yes, a longer tenure lowers the monthly EMI, but you pay interest for more months, so the total interest goes up. Move the tenure slider above to see the difference.

What happens to my EMI if the interest rate changes?

On a floating-rate loan, your bank usually keeps the EMI the same and extends the tenure when rates rise. You can often ask to raise the EMI instead, which keeps the tenure unchanged and saves interest.

Is the EMI shown here exactly what my bank will charge?

It will be very close. Your bank's figure may differ slightly because of rounding, the date your loan is disbursed, processing fees or insurance added to the loan.

Can I claim tax benefits on my home loan EMI?

Under the old tax regime, you can claim up to ₹2 lakh a year on interest for a self-occupied home under Section 24(b), and up to ₹1.5 lakh on principal under Section 80C. The new tax regime does not allow these deductions for a self-occupied home. Check with a tax advisor for your situation.

What is a good EMI-to-income ratio?

Many lenders prefer that all your EMIs together stay below 40–50% of your monthly take-home pay. Keeping it lower leaves room for savings and emergencies.