EMI Calculator
Loan EMI for home, car and personal loans, with prepayment to cut interest or EMI, and a full repayment schedule.
By Syed Mubashir Ali · Last updated
Estimates only — not financial advice. Figures are calculated in your browser from the rates shown and may differ from your bank, lender or tax authority. Check important numbers before acting on them.
The tenure trap
Lenders love offering longer tenures because the EMI looks smaller, and borrowers love them for the same reason. But the interest maths is brutal: each extra year adds a full year of interest on a still-large balance. On a 30-lakh home loan at 8.75%, stretching from 15 to 25 years drops the EMI from about 29,983 to about 24,664 (5,300 less a month) while adding about 20 lakh in total interest.
The right question isn't 'what EMI can I afford' but 'what's the shortest tenure whose EMI I can afford even in a bad month'. Build in a buffer: if 30,000 is comfortable, don't take an EMI of 29,500. Life happens: job changes, medical bills, rate rises. The calculator's prepayment view shows the flip side: an extra 2,000 a month on that 20-year loan saves about 6.4 lakh in interest and ends it a little over three years early.
How to Use EMI Calculator
- 1Enter the loan amount, the yearly interest rate and the tenure in months or years.
- 2Read your monthly EMI, total interest and total amount payable, with the split between principal and interest.
- 3Open 'Prepayment' to add a lump sum after a chosen EMI and/or an extra amount every month.
- 4Choose whether the prepayment should finish the loan sooner (same EMI) or lower the EMI (same tenure), and compare the interest each saves.
- 5See the balance chart and the repayment schedule by year or by month, then copy or share the result.
Frequently Asked Questions
What is EMI?
An equated monthly instalment: the same amount paid to the lender every month, covering that month's interest plus part of the loan. Because interest is charged on the falling balance, early EMIs are mostly interest and later ones mostly principal.
How is EMI calculated?
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan, r the monthly rate (annual rate ÷ 12 ÷ 100) and n the number of months. For example, a loan of 5,00,000 at 8.5% for 5 years has an EMI of 10,258.27 and total interest of about 1,15,496.
Is it better to reduce the EMI or the tenure after a prepayment?
Reducing the tenure saves more interest. On 5,00,000 at 8.5% for 5 years, prepaying 1,00,000 after 12 EMIs and keeping the EMI the same saves about 34,408 in interest and ends the loan 13 months early; lowering the EMI instead (to 7,793.44) saves about 18,312. Choose a lower EMI if you need the monthly breathing room.
How much interest will I pay on a home loan?
Over a long tenure, often close to the loan itself. A home loan of 30 lakh at 8.75% for 20 years has an EMI of about 26,511 and total interest of about 33.6 lakh, more than the amount borrowed. Small regular prepayments cut this sharply.
Does the EMI include processing fees or insurance?
No. The EMI covers principal and interest only. Processing fees, loan insurance and any prepayment or foreclosure charges are separate; check your loan agreement for them.
Should I choose a longer tenure for a lower EMI?
Only if you need the monthly relief. A 30-lakh loan at 8.75%: over 15 years the EMI is about 29,983 and total interest about 24 lakh; over 20 years the EMI drops to about 26,511 but interest rises to about 33.6 lakh. Five extra years of a 3,500-lower EMI cost nearly 10 lakh more in interest. Take the shortest tenure whose EMI you can comfortably afford.
What is the 28/36 rule for affordability?
Spend at most 28% of gross monthly income on housing costs and at most 36% on all debt payments. On a 1,00,000/month income, housing should stay under 28,000 and total EMIs under 36,000. Lenders use versions of this to judge whether you can afford the loan.
About EMI Calculator
The EMI calculator works out the monthly instalment for a home loan, car loan, personal loan or education loan using the reducing-balance method banks use, then shows how much of everything you pay goes to interest.
Its prepayment section answers the question most borrowers have next: what happens if I pay a lump sum, or a little extra every month? Choose whether the prepayment shortens the loan or lowers the EMI and the calculator shows the interest and months saved, with a chart comparing the balance with and without it.
The repayment schedule lists every month or year with principal, interest, prepayment and balance, and the inputs are kept in the page link, so you can share a calculation or come back to it later.