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EMI Calculator - Home, Personal & Car Loan

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Enter your loan amount, interest rate, and tenure to calculate your monthly EMI (Equated Monthly Instalment).

EMI Calculator

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Monthly EMI
Rs. 16,607
Total interest
Rs. 97,857
Total payment
Rs. 5,97,857
Uses the reducing (diminishing) balance method, the standard used by Indian banks and NBFCs. Excludes processing fees, GST, or insurance charges your lender may add.

The formula

EMI = P x r x (1+r)^n / [(1+r)^n - 1] P = principal (loan amount) r = monthly interest rate (annual rate / 12 / 100) n = tenure in months
Example

Rs. 5,00,000 loan at 12% p.a. for 3 years (36 months): EMI = Rs. 16,607 per month, with total interest of about Rs. 97,857 over the loan.

Step-by-step guide

  1. Enter your loan amount - the full principal you're borrowing.
  2. Enter the annual interest rate your lender quoted (as a percentage per annum).
  3. Enter the tenure in years or months, and read your monthly EMI, total interest, and total repayment.

Reducing balance vs. flat rate - a costly mix-up

This calculator uses the reducing (diminishing) balance method - the standard for virtually all home loans, personal loans, and car loans from Indian banks and NBFCs, where interest is charged only on the outstanding principal each month. A "flat rate" loan works completely differently: interest is charged on the full original principal for the entire tenure, even as you pay it down. A flat rate that sounds lower than a reducing-balance rate can actually cost more overall - a 12% flat rate loan is roughly equivalent to an 21-22% reducing-balance rate in real cost. Always confirm which method your lender is quoting before comparing offers.

Common mistakes

Comparing a flat-rate quote directly against a reducing-balance quote - they're calculated completely differently, and a lower flat rate can easily cost more than a higher reducing-balance rate.
Forgetting processing fees, GST, and insurance add-ons - this calculator shows the pure interest-based EMI; your actual loan agreement may include additional charges your lender adds separately.

Frequently asked questions

What does EMI stand for?

Equated Monthly Instalment - a fixed monthly payment that combines both principal repayment and interest, used to repay a loan over a set tenure.

Why does the interest portion of my EMI decrease over time?

Under the reducing balance method, interest is calculated only on your remaining outstanding principal. As you pay down the loan each month, the balance shrinks, so less interest accrues, and more of each fixed EMI goes toward principal.

Does prepayment actually help reduce my total interest?

Yes, significantly - any extra payment toward principal reduces the outstanding balance immediately, which lowers all future interest calculations. Under RBI/NHB rules, individual borrowers on floating-rate home loans generally face no prepayment penalty.

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