📊 Loan Details

Loan Amount ₹10,00,000

₹50K₹50L₹1Cr

Or enter amount manually

₹

Annual Interest Rate 8.5%

1%15%30%

Interest Rate (%)

Loan Tenure 20 Yrs

1 Yr15 Yrs30 Yrs

Tenure (Years)

Loan Type

📈 Results

Monthly EMI

—

per month

Total Interest

—

total payable

Total Amount

—

principal + interest

Principal vs Interest

Year-wise Payment Breakdown

Amortization Schedule (First 12 Months)

#	EMI	Principal	Interest	Balance

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Enter Loan Details

Fill in the loan amount, interest rate, and tenure, then click Calculate EMI to see your results.

Formula

How EMI is Calculated

EMI is calculated using the standard reducing balance method

EMI Formula

EMI = P × r × (1 + r)ⁿ / [(1 + r)ⁿ − 1]

Where:
P = Principal loan amount
r = Monthly interest rate (Annual rate ÷ 12 ÷ 100)
n = Loan tenure in months

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Reducing Balance Method

Interest is calculated on the outstanding principal each month, so your effective interest decreases as you repay.

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When to Use

Planning a home, car, or personal loan
Comparing loan offers from different banks
Checking affordability before applying
Understanding total interest cost over loan life

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EMI Tips

Longer tenure = lower EMI but more interest
Prepayment reduces interest burden significantly
Compare effective interest rate (EIR), not just nominal rate
Keep EMI below 40% of take-home salary

FAQ

Frequently Asked Questions

Common questions about EMI calculations

What is EMI and how does it work?

EMI (Equated Monthly Installment) is a fixed monthly payment made to a lender to repay a loan. Each payment consists of a principal component and an interest component. Early in the loan, the interest portion is higher; as the loan matures, the principal portion increases.

Does a higher down payment reduce EMI?

Yes. A larger down payment reduces the principal loan amount, which directly reduces your EMI. For example, paying 30% down on a ₹50L home instead of 20% reduces the loan by ₹5L, saving significant interest over the tenure.

What happens if I make prepayments?

Prepayments reduce the outstanding principal, which reduces total interest payable. You can either reduce your EMI amount (keeping tenure same) or keep the EMI same and reduce your loan tenure. Most banks allow prepayments with minimal or no charges.

Is the EMI calculator accurate for all loan types?

This calculator uses the standard reducing balance formula used by most Indian banks. However, some loans may have processing fees, GST on interest, or fixed interest periods. Always verify with your lender's official loan statement.

How does interest rate affect total loan cost?

Even a 0.5% difference in interest rate can save lakhs over a 20-year loan. For a ₹50L loan at 8% vs 8.5%, the difference in total interest over 20 years is approximately ₹3.5 lakhs. Always negotiate for the lowest rate possible.

🏦 EMI Calculator

How EMI is Calculated

Reducing Balance Method

When to Use

EMI Tips

Frequently Asked Questions

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