EMI Calculator

How the EMI calculator works

EMI (Equated Monthly Instalment) is the fixed amount you pay a lender every month until a loan is fully repaid. Each EMI covers part interest and part principal. Early in the loan most of the EMI is interest; later, more of it chips away at the principal. This calculator uses the standard reducing-balance formula:

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

where P is the loan amount, r is the monthly interest rate (annual ÷ 12), and n is the number of monthly instalments. It works for any reducing-balance loan — home, car or personal.

A quick example

Borrow ₹25 lakh at 9% for 20 years and your EMI is about ₹22,500 a month. Over the full term you pay roughly ₹54 lakh — meaning almost ₹29 lakh is interest on top of the ₹25 lakh you borrowed. That's why tenure matters so much.

How tenure and rate change your EMI

• Longer tenure = lower EMI, higher total interest. Stretching a loan reduces the monthly strain but you pay more overall.
• Even a 1% rate difference is huge on a big, long loan — it can add lakhs over the life of the loan.
• Prepayments early on save the most, because that's when the interest portion is largest.

How much should you borrow?

A good rule of thumb is to keep your home loan EMI under about 40% of your take-home pay, so a bad month never threatens your home. See how much home loan you can actually afford for a fuller breakdown.