Loan EMI calculator
Work out your monthly instalment, total interest and total payment for a home, car or personal loan.
Loan EMI calculator
Works offlineThe rate shown is only an example — enter your bank’s rate. The shaded part of the ring is the interest share.
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How EMI is calculated
EMI (equated monthly instalment) is the fixed amount you pay every month until a loan is cleared. Banks in India use the reducing-balance method: interest is charged each month only on the principal still outstanding.
The formula is 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 monthly instalments.
Worked example
For a loan of ₹10,00,000 at 9% a year for 5 years (60 months), the EMI is about ₹20,758. Over the full term you would pay about ₹12,45,501 in total, of which about ₹2,45,501 is interest.
Ways to reduce what you pay
- Choose a shorter tenure if the higher EMI is affordable — total interest drops sharply.
- Make part-prepayments when you can; on most floating-rate home loans there is no prepayment penalty for individual borrowers, but check your loan agreement.
- Compare the total cost, including processing fees and insurance, not only the interest rate.
- Ask your lender whether the rate is fixed or floating and how often it can change.
Frequently asked questions
Does this work for home, car and personal loans?
Yes. The formula is the same for any loan repaid in equal monthly instalments on a reducing balance. Enter the amount, the annual interest rate and the tenure in years.
Why is my bank’s EMI slightly different?
Lenders may round differently, add processing fees or insurance, start charging interest from the disbursement date, or change the rate on floating loans. Treat this as an accurate estimate and confirm with the sanction letter.
What is the difference between flat and reducing-balance interest?
A flat rate charges interest on the full original loan for the whole term and looks lower than it is. Reducing balance charges interest only on what is still owed. This calculator uses reducing balance, which is how banks quote home and car loans.
Can I enter a tenure in months?
Enter it in years as a decimal: 18 months is 1.5 years, 30 months is 2.5 years.
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Page reviewed 25 October 2026.