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EMI Calculator

Calculate your loan EMI for home, car, or personal loans instantly.

₹
%
months

Results

Monthly EMI₹20,517
Total Interest₹2.31 L
Total Payment₹12.31 L
Breakdown
Principal
₹10,00,000
Interest
₹2,30,992

Amortization schedule

YearPrincipalInterestBalance
Year 1₹1,67,630₹78,569₹8,32,371
Year 2₹1,82,445₹63,752₹6,49,925
Year 3₹1,98,574₹47,626₹4,51,352
Year 4₹2,16,125₹30,073₹2,35,228
Year 5₹2,35,227₹10,970₹0
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What is EMI?

EMI stands for Equated Monthly Installment — the fixed amount you pay every month to repay a loan over a predetermined period. Whether you are planning to buy a home, a car, or need a personal loan for an emergency, understanding your EMI is the first step to smart financial planning.

Each EMI payment consists of two components: principal repayment and interest charges. In the early months of your loan, a larger portion of your EMI goes towards paying interest, while in later months, more of it goes towards reducing the principal. This gradual shift is called amortization, and our calculator shows you the complete amortization schedule so you can track exactly where your money goes each month.

Why calculate EMI before taking a loan? Because the difference between loan options can be staggering. For example, a ₹50 Lakh home loan at 8.5% for 20 years costs you ₹54.2 Lakhs in total interest — more than the loan itself! But at 8.0% for the same tenure, the interest drops to ₹50.3 Lakhs — saving you ₹3.9 Lakhs just from a 0.5% rate difference.

All major banks in India — SBI, HDFC Bank, ICICI Bank, Axis Bank, Bank of Baroda, PNB, and Kotak Mahindra Bank — use the same standard EMI formula for calculating your monthly installment. The three factors that determine your EMI are: the loan amount (principal), the annual interest rate, and the repayment tenure in months.

Our free EMI calculator works for all types of loans: home loan EMI, car loan EMI, personal loan EMI, education loan EMI, two-wheeler loan EMI, gold loan EMI, and business loan EMI. Simply enter your loan details and get instant results with a detailed breakdown of your repayment schedule.

Planning to take a home loan? Check our Home Loan EMI Calculator for bank-specific rates. Looking for investment options instead? Try our SIP Calculator to see how systematic investing can grow your wealth.

Formula

The standard EMI formula used by all banks and NBFCs in India is:

EMI = P × r × (1 + r)^n / ((1 + r)^n − 1)

Where: - P = Principal loan amount (the total amount borrowed) - r = Monthly interest rate = Annual rate ÷ 12 ÷ 100 - n = Total number of monthly installments (tenure in months)

Let us work through a detailed example:

Suppose you take a ₹10,00,000 personal loan at 10.5% annual interest for 3 years.

Step 1: Calculate monthly rate: r = 10.5 / 12 / 100 = 0.00875 Step 2: Calculate tenure in months: n = 3 × 12 = 36 months Step 3: Apply the formula: EMI = 10,00,000 × 0.00875 × (1.00875)^36 / ((1.00875)^36 − 1) EMI = 10,00,000 × 0.00875 × 1.3686 / (1.3686 − 1) EMI = 10,00,000 × 0.011975 / 0.3686 EMI = ₹32,476

Total payment over 3 years = ₹32,476 × 36 = ₹11,69,128 Total interest paid = ₹11,69,128 − ₹10,00,000 = ₹1,69,128

Notice that you pay ₹1.69 Lakhs in interest on a ₹10 Lakh loan over just 3 years. This is why comparing interest rates and tenures before borrowing is so important.

Quick EMI reference for ₹1 Lakh loan: - At 8.5% for 5 years: EMI = ₹2,052 - At 10% for 5 years: EMI = ₹2,125 - At 12% for 5 years: EMI = ₹2,224 - At 15% for 3 years: EMI = ₹3,467

How to use this EMI Calculator?

Using the BetterCalculations EMI Calculator is straightforward. Here is a step-by-step guide:

1. Enter the Loan Amount: Type the total amount you plan to borrow. For example, if you are buying a car worth ₹12 Lakhs and making a 20% down payment, enter ₹9,60,000 as the loan amount.

2. Set the Interest Rate: Enter the annual interest rate offered by your bank. Check your bank's website or loan offer letter for the exact rate. Current indicative rates in India (2025): Home loan 8.5-9.5%, Car loan 8.5-11%, Personal loan 10.5-18%.

3. Choose the Tenure: Enter the repayment period in months. A 5-year loan is 60 months, 10 years is 120 months, and 20 years is 240 months.

4. Read Your Results: The calculator instantly displays your monthly EMI, total interest payable over the entire loan period, and the total amount (principal + interest) you will pay.

5. Compare Scenarios: Try changing the tenure to see how it affects your EMI. A shorter tenure means higher EMI but less total interest. A longer tenure means lower EMI but more total interest.

Pro tip: If your total EMIs (all loans combined) exceed 40-50% of your monthly take-home salary, the loan may be difficult to manage. Use our Salary Calculator to find your exact take-home pay before deciding on a loan amount.

Frequently asked questions

What is EMI and how does it work?
EMI (Equated Monthly Installment) is the fixed monthly payment you make to repay a loan. Each EMI includes two parts: interest on the outstanding balance and a portion of the principal. Over time, the interest portion decreases and the principal portion increases, until the loan is fully repaid.
What is a good EMI to salary ratio?
Financial experts recommend keeping your total EMI payments (all loans combined) below 40-50% of your monthly take-home salary. For example, if your in-hand salary is ₹80,000, your total EMIs should not exceed ₹32,000-40,000. Banks also use this ratio (called FOIR - Fixed Obligations to Income Ratio) to determine your loan eligibility.
Does EMI include GST and processing fees?
No, EMI only covers the principal and interest components of your loan. Processing fees (0.5-2% of loan amount), GST on processing fees (18%), documentation charges, and insurance premiums are typically charged separately, either upfront or added to the loan amount.
Can I reduce my EMI after taking a loan?
Yes, there are three ways: (1) Make partial prepayments to reduce the outstanding principal, (2) Refinance your loan by transferring to a bank offering a lower interest rate (balance transfer), (3) Request your bank to extend the tenure, which reduces EMI but increases total interest paid.
Is flat rate or reducing rate better for EMI?
Reducing rate (also called diminishing rate) is better. In reducing rate, interest is calculated on the outstanding principal which decreases each month. In flat rate, interest is calculated on the original loan amount throughout. A 10% flat rate is approximately equal to an 18-19% reducing rate. All banks in India use the reducing rate method.
What happens if I miss an EMI payment?
Missing an EMI payment results in: (1) Late payment fee of 1-2% of the EMI amount, (2) Penal interest on the overdue amount, (3) Negative impact on your CIBIL/credit score, (4) The missed payment is reported to credit bureaus, (5) Repeated defaults can lead to loan recall and legal action. Set up auto-debit to avoid missed payments.
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