EMI Calculator
Calculate your monthly EMI for home loan, car loan or personal loan. Shows total interest and payment schedule.
Year-wise Amortisation
| Year | Principal Paid | Interest Paid | Total Paid | Balance |
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How EMI is calculated
EMI (Equated Monthly Instalment) is calculated using the standard reducing-balance formula used by all Indian banks and NBFCs.
Tips to reduce your EMI burden
Every extra rupee in down payment reduces your principal, cutting both EMI and total interest significantly over the loan term.
Making part-prepayments (lump-sum payments toward principal) reduces outstanding balance and can save lakhs in interest.
A 15-year home loan has a higher EMI than a 20-year one but costs far less in total interest — often 30–40% less.
Frequently asked questions
What is an EMI?
An Equated Monthly Instalment (EMI) is a fixed monthly payment made by a borrower to a lender on a set date. It covers both the principal repayment and interest, calculated so the loan is fully repaid by the end of the tenure.
Does EMI change with repo rate changes?
For floating-rate loans (most home loans), the EMI or tenure changes when the RBI changes the repo rate. For fixed-rate loans (most car/personal loans), the EMI stays constant throughout.
What is the maximum home loan EMI I should pay?
Banks typically cap EMI obligations at 40–50% of your net monthly income. Financial planners recommend keeping all EMIs under 35–40% of take-home pay for comfortable living.
Is a longer or shorter tenure better?
A longer tenure gives a lower EMI but significantly higher total interest cost. A shorter tenure means a higher EMI but you pay far less in interest and become debt-free sooner.
How does prepayment affect my loan?
Prepayment reduces the outstanding principal, which reduces future interest. You can either reduce the EMI or reduce the tenure — reducing tenure saves more interest. Most home loans allow part-prepayment free of charge after a few years.