EMI Calculator (Home, Car and Personal Loan)
By Santaji GadepatilinUpdated October 27, 2026
An EMI is the fixed monthly payment that repays a loan and its interest over the loan term. It depends on the loan amount, interest rate and tenure.
Monthly EMI vs Loan tenure (years) — other inputs held at your current values.
How to use the EMI calculator
Enter the loan amount, the interest rate your bank quotes and the tenure in years. The calculator shows your monthly EMI, the total interest and the total amount you will repay. Change any value and the results update instantly.
It works in every direction. To find the loan you can afford, press × on Loan amount and type the EMI you are comfortable with. To check what rate a lender is really charging, enter the loan, EMI and tenure and press × on the rate.
The EMI formula
EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1)
- P = loan amount (principal)
- r = monthly interest rate = annual rate ÷ 12 ÷ 100
- n = number of monthly instalments = years × 12
Each EMI has two parts: interest on the outstanding balance and a repayment of principal. In the early years most of the EMI goes to interest. As the balance falls, more of each EMI repays the loan.
Worked example
A home loan of ₹30,00,000 at 8.5% for 20 years:
- Monthly rate r = 8.5 ÷ 12 ÷ 100 = 0.007083
- Number of EMIs n = 20 × 12 = 240
- EMI = ₹26,035
- Total payment = ₹26,035 × 240 = ₹62,48,327
- Total interest = ₹32,48,327
The interest is more than the loan itself, which is normal for a 20-year home loan.
EMI for common loans
| Loan type | Amount | Rate | Tenure | EMI | Total interest |
|---|---|---|---|---|---|
| Home loan | ₹30,00,000 | 8.5% | 20 years | ₹26,035 | ₹32,48,327 |
| Car loan | ₹8,00,000 | 9.5% | 5 years | ₹16,801 | ₹2,08,089 |
| Personal loan | ₹5,00,000 | 12% | 3 years | ₹16,607 | ₹97,858 |
| Education loan | ₹10,00,000 | 10% | 7 years | ₹16,601 | ₹3,94,499 |
How tenure changes your EMI
₹30 lakh at 8.5%:
| Tenure | EMI | Total interest | Total payment |
|---|---|---|---|
| 10 years | ₹37,196 | ₹14,63,485 | ₹44,63,485 |
| 15 years | ₹29,542 | ₹23,17,594 | ₹53,17,594 |
| 20 years | ₹26,035 | ₹32,48,327 | ₹62,48,327 |
| 25 years | ₹24,157 | ₹42,47,044 | ₹72,47,044 |
| 30 years | ₹23,067 | ₹53,04,266 | ₹83,04,266 |
A longer tenure lowers the EMI but the total interest climbs steeply. Choose the shortest tenure whose EMI fits comfortably in your budget.
How to reduce your loan cost
- Prepay early. A prepayment in the first few years saves far more interest than the same amount later. Floating-rate home loans for individuals have no prepayment penalty in India.
- Increase the EMI with your salary. Raising the EMI by 5–10% each year can cut a 20-year loan by several years.
- Compare the rate, not just the EMI. A small difference of 0.5% on ₹30 lakh over 20 years is worth roughly ₹2,29,700.
- Check the reset clause. Floating rates move with the repo rate, so your EMI or tenure can change.
Keep in mind
- Most lenders want total EMIs below about 40–50% of your take-home pay.
- Interest on a home loan may be deductible under the old tax regime. Check current rules with a tax adviser.
- This is an estimate. Your bank’s schedule may differ slightly because of rounding and the date the loan starts.
Frequently asked questions
What is the formula for EMI?
EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), where P is the loan amount, r the monthly interest rate (annual rate ÷ 12 ÷ 100) and n the number of monthly instalments.
What is the EMI on a ₹30 lakh home loan for 20 years?
At 8.5% a year the EMI is about ₹26,035 per month. Over 20 years you pay about ₹32,48,327 in interest.
Does a longer tenure reduce EMI?
Yes, but it increases the total interest. Going from 20 to 30 years on ₹30 lakh at 8.5% cuts the EMI by about ₹2,967 but adds about ₹20,55,938 of interest.
How much loan can I get for a given EMI?
Press × on Loan amount, then type the EMI you can afford along with the rate and tenure. The calculator works out the loan amount.
Does prepayment reduce EMI or tenure?
Banks usually keep the EMI the same and shorten the tenure, which saves the most interest. You can ask them to reduce the EMI instead.
Are processing fees included?
No. Processing fees, insurance and GST on fees are extra. Add them to compare the real cost of different offers.