EMI Calculator
Calculate your Equated Monthly Installment (EMI) for home loans, car loans, or personal loans.
Loan Details
Enter the total loan amount you need
Current interest rates range from 6.5% to 14%
20 years
Note: This calculator provides an estimate. Actual EMI may vary based on the lender's terms and processing fees.
Monthly EMI
₹0
Pay this amount every month for 20 years
Loan Breakdown
Loan Composition
Understanding EMI
EMI (Equated Monthly Installment) is a fixed amount you pay to the lender every month until the loan is fully repaid. It includes both principal and interest components.
EMI Formula
EMI = [P × R × (1+R)^N] / [(1+R)^N-1]
- P = Principal loan amount
- R = Monthly interest rate (Annual rate / 12 / 100)
- N = Loan tenure in months
Factors Affecting EMI
- Loan Amount: Higher loan = Higher EMI
- Interest Rate: Higher rate = Higher EMI
- Tenure: Longer tenure = Lower EMI but higher total interest
How to Use the EMI Calculator
Enter three inputs: (1) the loan amount in rupees, (2) the annual interest rate as a percentage, and (3) the loan tenure in months. The calculator instantly shows your monthly EMI, total interest payable, and total amount you will repay over the loan period.
For example: a ₹20 lakh home loan at 8.5% annual interest for 20 years (240 months) results in a monthly EMI of approximately ₹17,356. Total repayment is ₹41.65 lakh — meaning you pay ₹21.65 lakh as interest on a ₹20 lakh loan over 20 years.
Understanding the EMI Formula
EMI stands for Equated Monthly Installment. It is the fixed amount a borrower pays to the lender every month until the loan is fully repaid. Each EMI consists of two parts: the principal repayment and the interest charge. In the early months, interest forms a larger portion; over time, the principal component increases. This is called an amortizing loan.
The formula is: EMI = [P x R x (1+R)^N] / [(1+R)^N - 1], where P = principal, R = monthly interest rate (annual rate divided by 1200), and N = tenure in months. Banks and NBFCs use this same formula for all term loans.
Frequently Asked Questions
How is EMI calculated?
EMI = [P × R × (1+R)^N] / [(1+R)^N - 1], where P is principal, R is monthly interest rate (annual rate ÷ 1200), and N is tenure in months. A ₹20 lakh loan at 8.5% for 20 years gives EMI ≈ ₹17,356.
What is the EMI for a ₹20 lakh home loan?
At 8.5%: 10-year tenure = ₹24,797/month; 15-year = ₹19,698/month; 20-year = ₹17,356/month. Longer tenure means lower EMI but higher total interest paid.
How can I reduce my EMI?
Four ways: (1) larger down payment to reduce principal, (2) negotiate a lower rate — 0.5% less saves lakhs over 20 years, (3) extend tenure to spread payments, (4) make part-prepayments to reduce outstanding principal.
What happens if I miss an EMI?
Lender charges a late penalty (1-2% of overdue EMI); your CIBIL score drops; repeated defaults can classify the loan as NPA; for secured loans, the lender may initiate recovery proceedings.