Loan EMI Calculator
Work out the monthly EMI for a home, car or personal loan. Enter the loan amount, interest rate and tenure to see your EMI, the total interest you will pay, and the total cost of the loan — updated instantly as you type.
Enter the loan amount, interest rate and tenure to see your EMI.
Monthly EMI
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| Principal amount | ₹0 |
| Total interest | ₹0 |
| Total payment (principal + interest) | ₹0 |
How your loan EMI is calculated
An EMI, or Equated Monthly Instalment, is the fixed payment you make to your lender every month until the loan is cleared. Although the amount stays the same, its make-up changes: in the early months most of your EMI is interest and only a little is principal, while towards the end the balance flips and you repay mostly principal. This is the reducing-balance method, where interest is charged only on the outstanding amount, not the original loan.
The EMI is found with a standard formula — EMI = P × r × (1+r)n / ((1+r)n − 1) — where P is the loan amount, r is the monthly interest rate (the annual rate divided by twelve and by a hundred) and n is the tenure in months. This calculator applies that formula and also splits the total cost into how much is principal and how much is interest, so you can see the true price of borrowing.
Two levers decide your EMI: the interest rate and the tenure. A longer tenure spreads the principal over more months, so the monthly EMI falls and the loan feels more affordable — but because you are paying interest for longer, the total interest rises. A shorter tenure does the opposite: a higher EMI, yet a much smaller total interest bill. Trying a few combinations here is the quickest way to find a payment you are comfortable with while keeping the overall cost in check.
You can also lower what you pay by making prepayments. Because interest is front-loaded, a lump sum in the first few years removes principal that would otherwise have attracted years of interest, often saving far more than the same amount paid later. Comparing a flat-rate quote with a reducing-balance one is worthwhile too — for the same headline rate, reducing balance is always cheaper, which is why home and car loans use it.
Use this calculator before you sign anything: it is fast, works on any phone, and shows the numbers in familiar lakh and crore formatting. Always confirm the final figures and any fees with your bank, as processing charges and insurance can change the real cost of the loan.
Frequently asked questions
What is an EMI?
EMI stands for Equated Monthly Instalment — the fixed amount you pay your lender every month until a loan is fully repaid. Each EMI covers part interest and part principal, so the loan balance falls a little more each month.
How is EMI calculated?
EMI = P × r × (1+r)n / ((1+r)n − 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of months. This calculator applies that formula on a reducing-balance basis.
Does a longer tenure reduce my EMI?
Yes, a longer tenure lowers the monthly EMI because the principal is spread over more months. However, you pay interest for longer, so the total interest — and the total cost of the loan — goes up.
What is the difference between flat and reducing-balance interest?
Flat interest is charged on the full original amount for the whole tenure. Reducing-balance interest is charged only on the outstanding balance, which falls every month. Reducing balance — used by this calculator and by most home and car loans — works out much cheaper for the same quoted rate.
How can I reduce the total interest I pay?
Choose a shorter tenure if you can afford the higher EMI, negotiate a lower interest rate, or make part-prepayments when you have surplus funds. Even small prepayments early in the loan cut the total interest significantly.
This calculator is for general information only and is not financial advice. Actual EMIs may differ because of processing fees, insurance, and how your lender rounds figures. Confirm the exact amount with your bank before borrowing.