An EMI, or equated monthly installment, is the fixed amount you pay a bank or NBFC every month until a loan is repaid. Each EMI covers that month’s interest on the outstanding balance and repays part of the principal. This EMI calculator works out the installment for any home, car, education or personal loan, formats every amount in rupees with lakh and crore grouping, and shows the month-wise breakup.
How to use the EMI calculator
- Enter the loan amount in rupees — for example 25,00,000 for ₹25 lakh.
- Enter the interest rate per annum quoted by your lender.
- Enter the tenure in years or months.
- Optionally add the first EMI date to date every installment.
- Read the EMI, total interest and total amount payable, then check the EMI-per-lakh table and the yearly and month-wise schedules.
EMI formula
Banks in India compute EMIs on a monthly reducing balance:
- P is the principal (loan amount).
- r is the monthly rate: annual rate ÷ 12 ÷ 100. At 8.5%, r = 0.0070833.
- n is the number of monthly installments: tenure in years × 12.
Each month, interest = outstanding balance × r, and the rest of the EMI reduces the principal.
Worked example
A home loan of ₹25 lakh at 8.5% for 20 years (240 EMIs):
(1 + r)240 = 5.441243
EMI = 25,00,000 × 0.0070833 × 5.441243 ÷ 4.441243 = ₹21,695.58, or about ₹21,696
Total payable: ₹52,06,939, of which ₹27,06,939 is interest
First EMI: ₹17,708 interest and only ₹3,987 principal
Over 20 years you pay more in interest than you borrowed — about 108% of the loan.
How tenure changes the EMI
Same ₹25 lakh at 8.5%:
| Tenure | EMI | Total interest |
|---|---|---|
| 10 years | ₹30,996 | ₹12,19,571 |
| 15 years | ₹24,618 | ₹19,31,328 |
| 20 years | ₹21,696 | ₹27,06,939 |
| 25 years | ₹20,131 | ₹35,39,203 |
| 30 years | ₹19,223 | ₹44,20,221 |
Moving from 20 to 30 years lowers the EMI by under ₹2,500 but adds more than ₹17 lakh of interest. A one-point rise in the rate, to 9.5% for 20 years, lifts the EMI to ₹23,303.
Tips for managing a loan EMI
Keep the EMI within budget
Lenders typically want total EMIs to stay within about 40–50% of your net monthly income, and a lower share leaves room for savings and emergencies.
Prepay early when you can
Part-prepayments in the first few years cut the most interest, because the balance is highest then. Choosing a shorter tenure after a prepayment saves more than choosing a lower EMI.
Watch rate resets
Most new home loans are floating-rate and linked to the RBI repo rate. When rates rise, check whether your tenure has been extended; if it now runs past your retirement, consider increasing the EMI instead.
Tax benefits
Under the old income tax regime, home loan interest on a self-occupied house may be deductible up to ₹2 lakh a year under Section 24(b), and principal repayment qualifies under Section 80C within its overall limit. Confirm the current rules for your regime before relying on them.
For loans quoted in dollars or with other payment frequencies, use the loan calculator or the amortization calculator.
Estimates only. Processing fees, insurance and the bank's own rounding are not included; your sanction letter and repayment schedule are the authoritative figures.
Frequently asked questions
What is the formula for EMI?
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r is the annual interest rate divided by 12 and by 100, and n is the number of monthly installments. A ₹25 lakh loan at 8.5% for 20 years gives an EMI of about ₹21,696.
How much EMI will I pay per lakh?
At 8.5% a year, the EMI is about ₹2,052 per lakh over 5 years, ₹1,240 over 10 years and ₹868 over 20 years. Multiply by the number of lakhs you borrow; the calculator shows this table at whatever rate you enter.
What happens to my EMI when the repo rate changes?
On a floating-rate loan linked to an external benchmark such as the RBI repo rate, the bank resets your interest rate periodically. Lenders usually keep the EMI the same and change the tenure, but RBI guidelines require them to explain the reset and offer a choice of a higher EMI, a longer tenure or a mix.
Is it better to reduce the EMI or the tenure after a prepayment?
Reducing the tenure saves more interest because the balance is cleared sooner at the same EMI. Reducing the EMI eases the monthly budget but leaves the loan running for the full term. RBI rules do not allow prepayment penalties on floating-rate loans taken by individuals for non-business purposes.
Is the EMI on a flat-rate loan the same?
No. A flat rate charges interest on the original amount for the whole tenure, so the same headline rate costs much more than on a reducing-balance loan. This calculator uses the reducing-balance method that banks use for home loans.