Whether you’re evaluating a home loan, car loan or personal loan, knowing your Equated Monthly Instalment, or EMI, upfront helps you judge affordability before you apply. This calculator uses the standard reducing-balance formula that Indian banks and NBFCs use to compute EMIs.
Enter the loan amount, annual interest rate and tenure in years to see your monthly EMI, total interest payable over the loan, and the total amount you’ll repay.
EMI / Loan Calculator
Calculate the monthly EMI, total interest and total payment for any loan.
Standard reducing-balance EMI calculation. Actual EMI may vary slightly based on your lender’s exact compounding and processing fee terms.
How EMI is calculated
The formula is EMI = [P × r × (1+r)^n] / [(1+r)^n − 1], where P is the principal loan amount, r is the monthly interest rate (annual rate divided by 12 and by 100), and n is the number of monthly instalments. In the early months of a loan, a larger share of each EMI goes toward interest; as the outstanding principal reduces, more of each instalment goes toward principal repayment.
Tips before taking a loan
A lower interest rate or a shorter tenure both reduce total interest paid, though a shorter tenure raises the monthly EMI. It’s worth comparing the total interest cost across tenure options, not just the monthly EMI figure, and checking whether your lender charges prepayment or foreclosure fees if you plan to repay early.
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Frequently asked questions
Does this EMI calculator include processing fees?
No, this shows only principal and interest based on the reducing balance method. Processing fees, insurance and other charges some lenders add are not included and should be checked separately.
What is a reducing balance EMI?
It means interest is charged only on the outstanding principal each month, which reduces as you repay, rather than on the original loan amount throughout the tenure — this is how almost all bank loans in India work.
Does prepaying a loan reduce my EMI or my tenure?
Depends on what you choose with your lender. Most banks let you either reduce the EMI while keeping tenure the same, or keep the EMI the same and shorten the tenure, with the latter usually saving more total interest.