How to calculate your EMI
- Enter the loan amount, the yearly interest rate and the tenure in years or months.
- Read the monthly EMI, the total interest and the total you'll pay back.
- Check the bar to see how much of the total is interest.
- Scroll the repayment schedule, or switch it to Monthly to see every instalment.
The EMI formula
EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1)
- P is the loan amount (the principal).
- r is the monthly interest rate: the yearly rate divided by 12, then by 100.
- n is the number of monthly instalments.
In plain words: the EMI is the fixed monthly payment that covers each month's interest on what you still owe and clears the loan exactly on the last instalment. This is the reducing-balance method: interest is charged only on the outstanding balance, so the interest part of each EMI falls over time while the principal part grows. At 0% interest the EMI is simply the loan amount divided by the number of months.
Worked example
A home loan of ₹10,00,000 at 10% a year for 20 years:
- r = 10 ÷ 12 ÷ 100 = 0.008333, and n = 20 × 12 = 240.
- (1 + r)240 ≈ 7.328.
- EMI = 10,00,000 × 0.008333 × 7.328 ÷ 6.328 ≈ ₹9,650.22 a month.
- Over 240 months you pay about ₹23,16,052: the ₹10,00,000 borrowed plus ₹13,16,052 of interest.
In the first month, ₹8,333.33 of the EMI is interest and only ₹1,316.88 reduces the loan. By the last year, almost all of each payment goes to the principal.
How it works
The calculator works out the EMI with the formula above, then builds the repayment schedule one month at a time, the way a lender's loan account does:
- Interest for the month is the balance still owed × r.
- The EMI pays that interest first. Whatever is left of it reduces the balance.
- The last instalment pays exactly what's left plus its interest, so the balance ends at zero rather than a few paise either side.
Nothing is rounded until it's shown on screen. The totals add up the unrounded monthly figures, so 240 instalments don't pile up 240 small rounding errors. The yearly view adds up each loan year's twelve months; year 1 is your first twelve instalments, not a calendar year. Results update as you type, and the same inputs always give the same schedule. The ₹10 lakh example above is one of the automated tests the calculation must pass.
If your lender rounds the EMI to whole rupees, its final instalment absorbs the difference, so its schedule can differ from this one by a few rupees in the last month.
EMI per ₹1 lakh borrowed
Multiply by the number of lakhs you borrow. For ₹25 lakh at 8.5% over 20 years: 25 × ₹867.82 ≈ ₹21,696.
| Rate | 5 years | 10 years | 15 years | 20 years | 30 years |
|---|---|---|---|---|---|
| 7% | ₹1,980.12 | ₹1,161.08 | ₹898.83 | ₹775.30 | ₹665.30 |
| 8% | ₹2,027.64 | ₹1,213.28 | ₹955.65 | ₹836.44 | ₹733.76 |
| 8.5% | ₹2,051.65 | ₹1,239.86 | ₹984.74 | ₹867.82 | ₹768.91 |
| 9% | ₹2,075.84 | ₹1,266.76 | ₹1,014.27 | ₹899.73 | ₹804.62 |
| 10% | ₹2,124.70 | ₹1,321.51 | ₹1,074.61 | ₹965.02 | ₹877.57 |
| 12% | ₹2,224.44 | ₹1,434.71 | ₹1,200.17 | ₹1,101.09 | ₹1,028.61 |
Before you sign
This is an estimate from the rate and tenure alone. Your lender's figure can differ slightly: banks may round the EMI, charge interest for the days before your first full month, or add processing fees and insurance to the loan. Floating rates also change over the life of a loan, which changes the EMI or the tenure. To see what paying extra would save, try theloan prepayment calculator.
Common uses
- Comparing two home loan offers. Enter each lender's rate and tenure for the same amount to compare the monthly EMI and, more importantly, the total interest over the life of the loan.
- Budgeting for a car or bike. Try different loan amounts and tenures to find an EMI that fits your monthly budget before you visit the dealer.
- Checking a loan quote. Confirm that the EMI a bank or finance company quotes matches the rate and tenure on the offer, and spot fees hidden in a higher instalment.
- Seeing how much interest you'll pay. The principal and interest split and the yearly schedule show how much of every payment goes to interest and what you will still owe at the end of each year.