How to calculate EMI
- Enter the loan amount (principal), the annual interest rate and the tenure. Choose months or years for the tenure.
- The EMI, total interest and total amount payable appear immediately.
- Add an extra monthly payment (prepayment) to see how much interest you save and how much sooner the loan closes.
- Download the month-by-month schedule as CSV.
EMI formula
EMI stands for equated monthly instalment: a fixed amount paid every month that covers interest and repays part of the principal. 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 tenure in months. For a ₹10,00,000 home loan at 8.5% for 20 years (240 months), the EMI is ₹8,678.23 and total interest is about ₹10.8 lakh, more than the amount borrowed.
In the early years most of each EMI is interest, so part-prepayments made early save the most. A longer tenure lowers the EMI but raises the total interest. Banks may calculate interest on daily or monthly reducing balance and add processing fees, so their figures can differ slightly. Use this calculator to compare offers before you apply; all calculations stay in your browser.
FAQ
What is the EMI for a 10 lakh loan?
At 8.5% for 20 years it is about ₹8,678 a month; at 10% for 5 years about ₹21,247. Enter your own rate and tenure above.
Does prepayment reduce EMI or tenure?
Either, depending on your bank. This calculator keeps the EMI fixed and shows the shorter tenure and interest saved.
Is the interest rate monthly or yearly?
Enter the annual rate quoted by the bank. The calculator divides it by 12 for the monthly rate.