EMI Calculator

What your result means

The calculator shows four main numbers. Together they show the full cost of the loan, beyond the monthly payment.

In the early years, most of each EMI goes to interest. As the balance falls, the interest part shrinks and more of the EMI repays the loan. The table makes this easy to see.

How EMI is calculated

Banks in India use the reducing-balance method. Interest is charged each month only on the amount you still owe, not on the original loan. The EMI formula is:

EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)

• P: the loan amount (principal).
• r: the monthly interest rate, which is the yearly rate ÷ 12 ÷ 100. So 8.5% a year is 0.0070833 a month.
• n: the tenure in months. 20 years is 240 months.

If the interest rate is 0, the EMI is simply P ÷ n. Each month, the interest part is the balance × r, and the rest of the EMI reduces the balance. Money is shown in whole rupees.

How to use the EMI calculator

1. Enter the loan amount in rupees. The default is ₹25,00,000.
2. Enter the interest rate as a percentage a year, for example 8.5.
3. Enter the tenure and pick years or months. The default is 20 years.
4. Read your EMI, total interest and total payable. Scroll the year-by-year table to see how the balance falls. Results update as you type.

Worked example

Priya takes a home loan of ₹25 lakh at 8.5% a year for 20 years.

1. Monthly rate: 8.5 ÷ 12 ÷ 100 = 0.0070833.
2. Months: 20 × 12 = 240.
3. EMI: 25,00,000 × 0.0070833 × (1.0070833)²⁴⁰ ÷ ((1.0070833)²⁴⁰ − 1) = ₹21,696.
4. Total payable: ₹21,695.58 × 240 = ₹52,06,939.
5. Total interest: ₹52,06,939 − ₹25,00,000 = ₹27,06,939.

Priya pays more in interest than she borrowed. In the first month, interest is ₹25,00,000 × 0.0070833 = ₹17,708, so only about ₹3,987 of her first EMI reduces the loan. In year 1 she repays ₹49,756 of principal and ₹2,10,591 of interest, and owes ₹24,50,244 at the end of the year.

EMI for every ₹1 lakh borrowed

Find your rate and tenure, then multiply by the number of lakhs you borrow. For a ₹30 lakh loan at 8.5% for 20 years: ₹868 × 30 = ₹26,040, within a few rupees of the calculator’s exact ₹26,035.

Some common loans, worked out exactly:

These rates are examples, not offers. Use the rate on your sanction letter.

How tenure and prepayment change your interest

A longer tenure lowers the EMI but raises the total interest a lot. For the same ₹25 lakh at 8.5%:

Going from 20 to 25 years saves only ₹1,565 a month but adds over ₹8 lakh of interest. Going down to 15 years costs ₹2,922 more a month and saves almost ₹7.8 lakh.

Prepayment works the same way. Because interest is charged on the balance, any extra amount you pay cuts all future interest on that money. If Priya prepays ₹2 lakh after her 12th EMI and keeps the same EMI, her loan ends 40 months early and she saves about ₹6.68 lakh of interest. Prepaying early in the loan saves the most. RBI rules do not let banks charge a prepayment penalty on floating-rate loans taken by individuals for non-business purposes.

Home, car and personal loans

The same formula works for any loan with a fixed monthly instalment. What changes is the usual tenure and rate.

• Home loan: long tenures, often 15 to 30 years, and usually a floating rate. Small rate changes make a big difference over this long a period.
• Car loan: shorter tenures, often 3 to 7 years. Rates are usually higher than home loans.
• Personal loan: unsecured, so rates are usually the highest of the three. Tenures are short, often 1 to 5 years.

Since October 2019, RBI has required banks to link new floating-rate retail loans, such as home, car and personal loans, to an external benchmark like the RBI repo rate. This is called an external benchmark lending rate (EBLR). When the repo rate changes, your loan rate changes too, usually at the next reset date. Banks normally keep your EMI the same and change the tenure, but you can often ask to change the EMI instead.

What the October 2026 repo rate hike means for your EMI

RBI raised the repo rate by 0.25% to 5.50% on 7 October 2026, its first hike since February 2023, and said the next move can only be another hike or a pause. If your bank passes the full 0.25% on to a repo-linked loan, here is what happens to Priya’s ₹25 lakh, 20-year loan at 8.5%:

• Keep the tenure, pay more: the EMI rises from ₹21,696 to ₹22,093, which is ₹397 more a month and about ₹95,000 more over 20 years.
• Keep the EMI, pay longer: the loan runs 253 months instead of 240, so 13 extra EMIs.

The longer-tenure route costs more in total. If you can afford ₹397 more a month, ask your bank to raise the EMI instead. To test your own loan, add 0.25 to your rate in the calculator above.

Limitations

• Fixed rate assumed: the calculator keeps one rate for the whole tenure. A floating-rate loan will change when the benchmark moves.
• No fees: processing fees, insurance, GST on fees and other charges are not included.
• No prepayments: the table assumes you pay only the EMI every month.
• Rounding: banks may round EMIs and calculate interest on daily balances, so your bank’s figures can differ by a few rupees.
• Pre-EMI: for under-construction homes, interest-only payments before full disbursement are not shown.

Use the result to compare options. Your lender’s sanction letter and repayment schedule are the final word.

Key facts

• RBI raised the policy repo rate by 25 basis points to 5.50% on 7 October 2026 and changed its stance to calibrated tightening. (RBI (opens in new tab))
• Since 1 October 2019, new floating-rate personal, housing and auto loans from banks must be linked to an external benchmark such as the RBI repo rate. (RBI (opens in new tab))
• Banks cannot charge foreclosure charges or prepayment penalties on floating-rate term loans to individual borrowers for non-business purposes. (RBI (opens in new tab))
• Under an external benchmark, the interest rate must be reset at least once every three months. (RBI (opens in new tab))
• When a floating rate is reset, lenders must let borrowers choose a higher EMI, a longer tenure or a mix of both, and offer the option to switch to a fixed rate. (RBI (opens in new tab))
• Lenders must give borrowers a Key Facts Statement that shows the annual percentage rate, including fees, before signing a retail loan. (RBI (opens in new tab))