EMI Calculator India

Calculate Equated Monthly Installment (EMI) for home, car, personal, and education loans

Calculate Your EMI

Total amount you want to borrow

%

Annual rate of interest charged by the lender

Duration of the loan (120 months total)

Loan Parameters

Principal Amount

₹10,00,000

Monthly Interest Rate

0.833%

Loan Term

120 months

Total Payments

120 EMIs

EMI Calculation Results

₹13,215
Monthly EMI
Equated Monthly Installment
₹15,85,809
Total Amount Payable
Principal + Interest
₹5,85,809
Total Interest Due
Interest Payable
EMI (Equated Monthly Installment)₹13,215
Principal Loan Amount₹10,00,000
Total Interest Due₹5,85,809
Total Amount Payable₹15,85,809
Loan Term10 years (120 months)
Interest to Principal Ratio58.6%

EMI Breakdown

Monthly Payment

₹13,215

Interest Percentage

36.9%

Principal Percentage

63.1%

Formula used: EMI = P × r × (1+r)^n / ((1+r)^n - 1)

Where: P = Principal (₹10,00,000), r = Monthly interest rate (0.833%), n = Number of months (120)

Example Calculation

Scenario: Home loan of ₹10,00,000 at 10% annual interest for 10 years

Calculation:

• P = ₹10,00,000

• r = 10% per annum = 10% / 12 months = 0.833% per month = 0.00833

• n = 10 years × 12 months = 120 months

Formula: EMI = 10,00,000 × 0.00833 × (1+0.00833)^120 / ((1+0.00833)^120 - 1)

Result: EMI = ₹13,215 per month

Total payment over 10 years = ₹15,85,800

Total interest paid = ₹5,85,800

Monthly Payment Schedule (First Year)

MonthEMIPrincipalInterestBalance
1₹13,215₹4,882₹8,333₹9,95,118
2₹13,215₹4,922₹8,293₹9,90,196
3₹13,215₹4,963₹8,252₹9,85,233
4₹13,215₹5,005₹8,210₹9,80,228
5₹13,215₹5,046₹8,169₹9,75,181
6₹13,215₹5,088₹8,127₹9,70,093
7₹13,215₹5,131₹8,084₹9,64,962
8₹13,215₹5,174₹8,041₹9,59,788
9₹13,215₹5,217₹7,998₹9,54,572
10₹13,215₹5,260₹7,955₹9,49,311
11₹13,215₹5,304₹7,911₹9,44,007
12₹13,215₹5,348₹7,867₹9,38,659

Notice how the interest component (orange) decreases and principal component (green) increases over time

Yearly Payment Summary

YearPrincipal PaidInterest PaidRemaining Balance
Year 1₹61,341₹97,239₹9,38,659
Year 2₹67,764₹90,816₹8,70,895
Year 3₹74,860₹83,720₹7,96,035
Year 4₹82,699₹75,881₹7,13,336
Year 5₹91,358₹67,222₹6,21,978
Year 6₹1,00,925₹57,655₹5,21,053
Year 7₹1,11,493₹47,087₹4,09,560
Year 8₹1,23,168₹35,412₹2,86,393
Year 9₹1,36,065₹22,515₹1,50,328
Year 10₹1,50,313₹8,267₹15

About EMI

ℹ️

EMI stands for Equated Monthly Installment

📊

Fixed amount paid monthly until loan is fully repaid

⚖️

Includes both principal and interest components

📈

Initial EMIs have higher interest, later EMIs have higher principal

🇮🇳

Calculated using reducing balance method in India

Common EMI Examples (India)

₹10 Lakh @ 10% for 10 years

EMI: ₹13,215/month

Total Interest: ₹5.86 Lakh

₹25 Lakh @ 8.5% for 20 years

EMI: ₹21,734/month

Total Interest: ₹27.16 Lakh

₹50 Lakh @ 9% for 25 years

EMI: ₹41,954/month

Total Interest: ₹75.86 Lakh

₹1 Crore @ 8% for 30 years

EMI: ₹73,376/month

Total Interest: ₹1.64 Crore

Typical rates for home loans in India

EMI Planning Tips

Keep EMI below 40-50% of your monthly income

Compare rates from different banks and NBFCs

Consider prepayment to reduce interest burden

Shorter tenure = higher EMI but less total interest

Check for processing fees and pre-closure charges

Maintain good credit score for better interest rates

Understanding EMI (Equated Monthly Installment)

What is EMI?

EMI stands for Equated Monthly Installment. It is a fixed payment amount made by a borrower to a lender at a specified date each month. EMIs are used to pay off both interest and principal each month so that over a specified number of years, the loan is fully paid off.

How EMI Works in India

In India, EMI is calculated using the reducing balance method. This means interest is calculated on the outstanding principal amount after each EMI payment. As you pay more EMIs, the principal reduces, and so does the interest component of your EMI.

Types of Loans with EMI

  • Home Loans: 6.5% - 9.5% for 15-30 years
  • Car Loans: 8% - 12% for 3-7 years
  • Personal Loans: 10% - 24% for 1-5 years
  • Education Loans: 8% - 14% for 5-15 years

EMI Formula

EMI = P × r × (1+r)^n / ((1+r)^n - 1)

  • P: Principal loan amount (in ₹)
  • r: Monthly interest rate (Annual rate ÷ 12 ÷ 100)
  • n: Number of monthly installments (Tenure in months)

EMI Structure Over Time

Initial Years: Higher interest component (70-80%), lower principal payment

Middle Years: Roughly equal interest and principal components

Final Years: Lower interest component (20-30%), higher principal payment

Important: Most banks in India allow prepayment of loans without penalties, helping you reduce total interest paid.

Factors Affecting EMI in India

Interest Rate

Varies based on RBI repo rate, bank policies, and your credit score. Even a 0.5% difference can significantly impact total interest paid.

Loan Tenure

Longer tenure reduces monthly EMI but increases total interest. Shorter tenure means higher EMI but lower total cost.

Loan Amount

Higher loan amount means higher EMI. Make a larger down payment to reduce the principal and thus the EMI and total interest.

EMI vs Fixed vs Floating Interest Rates

Floating Rate EMI

  • • Interest rate changes with market conditions
  • • Linked to bank's MCLR or RBI repo rate
  • • EMI amount changes periodically
  • • Generally starts at lower rates
  • • More common for home loans

Fixed Rate EMI

  • • Interest rate remains constant throughout tenure
  • • EMI amount stays the same
  • • Easier to plan finances
  • • Generally starts at higher rates
  • • Common for personal and car loans