EMI Calculator
Work out the monthly EMI on any Indian loan — home, personal, education or gold — plus the total interest and total amount you’ll repay over the tenure.
Reviewed by the CalcCafe editorial team · Last updated 18 July 2026 · How we test our tools
Example
Take a ₹25,00,000 home loan at 8.5% per annum for 20 years (240 months). The monthly rate is 8.5 ÷ 1200 ≈ 0.7083%, giving an EMI of about ₹21,696. Over the full tenure you repay roughly ₹52,06,939, of which about ₹27,06,939 is interest — more than the amount originally borrowed, which is typical for a 20-year loan at this rate.
How it works
Let r = annual rate ÷ 1200 (the monthly rate as a decimal) and n = tenure in years × 12. Then EMI = p × r × (1+r)n ÷ ((1+r)n − 1), where p is the principal. Total payment = EMI × n and total interest = total payment − p. If the rate is 0, the EMI is simply p ÷ n. This is the standard reducing-balance amortization formula used by Indian banks and NBFCs.
Good to know
An EMI — equated monthly installment — is the fixed amount you pay every month until the loan is cleared. Each installment blends interest on the outstanding balance with a slice of principal. Because the balance is largest at the start, early EMIs are interest-heavy: on the 20-year example above, around ₹17,700 of the first ₹21,696 installment is interest and only about ₹4,000 reduces the principal. The mix flips gradually, and in the final years almost the whole EMI is principal.
Two levers move the number. Rate: at ₹25 lakh over 20 years, every 0.25 percentage point on the rate shifts the EMI by roughly ₹400 and the lifetime interest by close to ₹1 lakh, which is why negotiating even a small spread reduction or a balance transfer can be worthwhile. Tenure: stretching the same loan from 15 to 25 years cuts the monthly outgo but adds many lakhs of extra interest, because you rent the money for a decade longer. Compare offers on total interest, not just the EMI you can afford this month.
Most Indian home loans are floating-rate, now typically linked to an external benchmark such as the RBI repo rate, so your EMI or remaining tenure changes when the benchmark moves. Fixed-rate loans hold the EMI steady but usually start higher. A consumer-friendly detail worth knowing: under RBI directions, lenders cannot charge foreclosure or prepayment penalties on floating-rate loans to individual borrowers for non-business purposes, so paying a floating-rate home or personal loan down early costs nothing beyond the money itself.
Prepayment is where the amortization math works for you. A lump-sum prepayment early in the tenure removes principal that would otherwise accrue interest for years — prepaying ₹1 lakh in year two of the example loan saves several times that in interest if you keep the EMI unchanged and let the tenure shrink. When you prepay, lenders offer a choice: lower EMI (same tenure) or shorter tenure (same EMI); the shorter tenure option nearly always saves more. This calculator shows principal and interest only — processing fees, insurance bundles and taxes on fees sit outside the EMI.
Frequently asked questions
How is loan EMI calculated?
Convert the annual rate to a monthly decimal (rate divided by 1200) and multiply the tenure in years by 12 to get n months. Then EMI = p × r × (1+r)^n ÷ ((1+r)^n − 1). This calculator applies the formula instantly as you type, and also shows the total interest and total repayment over the tenure.
Should I prepay to reduce my EMI or my tenure?
Reducing the tenure while keeping the EMI unchanged almost always saves more interest, because the loan spends less time accruing interest on the outstanding balance. Reduce the EMI instead only if the monthly payment is genuinely straining your budget.
Is my data uploaded anywhere?
No — this calculator runs entirely in your browser. The loan amount, rate and tenure you enter never leave your device, and it works offline once loaded.
Is this EMI calculator free?
Yes, completely free with no sign-up and no limits — use it for as many loan scenarios as you like.
People also ask
What is the EMI for a 25 lakh loan at 8.5% for 20 years?
About ₹21,696 per month. Over 240 payments that comes to roughly ₹52.07 lakh in total, of which around ₹27.07 lakh is interest — slightly more than the principal itself, which is normal for a two-decade loan at this rate.
Why does my EMI mostly go to interest in the early years?
Interest each month is charged on the outstanding balance, which is at its peak at the start of the loan. Since the EMI is fixed, whatever interest consumes first, only the remainder reduces principal. As the balance falls, the interest portion shrinks and the principal portion grows — the standard amortization pattern.
Can the bank change my EMI during the loan?
On a floating-rate loan, yes — when the benchmark rate (such as the RBI repo rate) moves, the lender resets your loan rate and adjusts either the EMI or the remaining tenure. On a fixed-rate loan the EMI stays constant for the fixed period, though many Indian “fixed” loans are fixed only for the first few years.
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Sources & references
These tools follow our methodology and provide educational estimates only — verify important figures with a qualified professional.