EMI Calculator
How to use this EMI calculator
Enter the loan amount, the yearly interest rate and the tenure in years. The result updates as you type, showing your monthly EMI, total interest and total amount payable.
EMI formula
EMI = P × r × (1+r)n ÷ ((1+r)n − 1), where P is the loan amount, r is the monthly rate (annual rate ÷ 12 ÷ 100) and n is the number of months.
Example
A ₹25,00,000 loan at 8.5% for 20 years has an EMI of about ₹21,696. Over 20 years you would repay about ₹52 lakh in total.
Worked example: how tenure changes your cost
Take a ₹25,00,000 loan at 8.5% a year. Over 20 years the EMI is about ₹21,696 and you repay about ₹52.07 lakh, of which about ₹27.07 lakh is interest. Choose 15 years instead and the EMI rises to about ₹24,619, but total repayment falls to about ₹44.31 lakh and interest to about ₹19.31 lakh. A higher EMI saves roughly ₹7.75 lakh in interest.
Tips to manage your home or personal loan
- Pick the highest EMI you can pay comfortably. Many lenders suggest keeping all EMIs under about 40% of monthly income.
- Make part-prepayments when you receive a bonus. Prepaying reduces the principal, so every later month charges less interest.
- Compare the total interest, not only the EMI. A low EMI over a very long tenure can cost much more.
- Check for processing fees, prepayment charges and whether the rate is fixed or floating before you sign.
Fixed and floating rates
With a fixed rate your EMI stays the same for the agreed period. With a floating rate, the lender changes the rate when its benchmark changes, so your EMI or tenure can change. This calculator uses one constant rate. If your rate floats, re-run it whenever your lender updates your rate.
Frequently asked questions
Does a longer tenure reduce my EMI?
Yes, the monthly EMI falls, but you pay more total interest.
Will my bank show the same EMI?
For fixed rates it should match closely. Floating rates, processing fees and rounding can cause small differences.
How can I reduce total interest?
Choose a shorter tenure, make part-prepayments, or compare lenders for a lower rate.
How much EMI is safe for my salary?
A common guideline is to keep total EMIs at or below 40% of your monthly take-home pay, so you still have room for savings and emergencies.
Does prepayment reduce EMI or tenure?
It depends on your lender. Many let you choose between a lower EMI and a shorter tenure. A shorter tenure usually saves more interest.