EMI Calculator
Use this EMI calculator to compute the Equated Monthly Instalment for any loan — home loan, car loan, personal loan, education loan, business loan or loan against property. Enter the loan amount, interest rate and tenure, and the calculator instantly shows your monthly EMI, total interest payable over the loan period, and the complete amortisation schedule showing how each instalment splits between principal and interest.
This home loan EMI calculator uses the standard reducing-balance method that all major Indian banks (SBI, HDFC, ICICI, Axis, Kotak) apply. The reducing-balance method calculates interest only on the outstanding principal each month, so as you pay down the loan, the interest portion of your EMI decreases and the principal portion increases. The earliest EMIs are mostly interest, while the final EMIs are mostly principal — a critical insight for anyone planning prepayments.
How this calculator works
The EMI formula
EMI is calculated using the standard reducing-balance amortisation formula:
EMI = [P × r × (1 + r)^n] / [(1 + r)^n − 1]
Where: P = principal loan amount, r = monthly interest rate (annual rate ÷ 12 ÷ 100), n = loan tenure in months
For example, a ₹50 lakh home loan at 8.5% annual interest for 20 years (240 months): P = 5000000, r = 0.085/12 = 0.00708, n = 240. EMI = ₹43,391. Total payment over 20 years = ₹1.04 crore. Total interest = ₹54.14 lakh — more than the principal itself.
Why early EMIs are mostly interest
Banks calculate interest first on the outstanding balance, then deduct it from your EMI; whatever remains reduces principal. In month 1 of a ₹50 lakh loan at 8.5%, the interest is ₹50,00,000 × 0.085/12 = ₹35,417. Your ₹43,391 EMI pays ₹35,417 as interest and only ₹7,975 as principal. By month 240, the same EMI is ₹305 interest + ₹43,086 principal — almost all principal.
This front-loading of interest is why prepayments in years 1-5 of a loan save dramatically more interest than prepayments in years 15-20.
Typical loan rates in India (April 2026)
| Loan Type | Typical Interest Rate | Typical Tenure |
|---|---|---|
| Home loan (floating) | 8.30% - 9.50% | 10 - 30 years |
| Loan against property | 9.50% - 11.50% | 5 - 20 years |
| Car loan (new) | 9.00% - 11.00% | 3 - 7 years |
| Car loan (used) | 11.00% - 14.00% | 3 - 5 years |
| Personal loan | 10.50% - 18.00% | 1 - 5 years |
| Education loan | 8.50% - 12.00% | 5 - 15 years |
| Gold loan | 8.50% - 14.00% | 3 months - 3 years |
| Credit card EMI | 13.00% - 24.00% | 3 - 24 months |
Floating vs fixed rate
Floating-rate loans (most home loans) are linked to the bank's benchmark — typically the RBI repo rate plus a spread. When the RBI cuts rates, your EMI falls (or tenure shortens). Fixed-rate loans lock in a rate for the entire tenure or for a specific period (usually 1-5 years), then convert to floating. Fixed rates are typically 0.5-1.0% higher than floating at origination.
For floating-rate home loans, the RBI has banned prepayment penalties for individual borrowers. You can prepay any amount at any time without charge. Fixed-rate loans may charge 2-4% prepayment penalty.
Tax benefits on home loans
Under the old tax regime: Section 80C allows up to ₹1.5 lakh deduction on principal repaid (within the overall 80C limit). Section 24(b) allows up to ₹2 lakh deduction on interest paid for self-occupied property — this is the bigger benefit. For let-out (rented) property, the entire interest paid is deductible against rental income with no upper cap. Under the new tax regime, only the let-out property interest deduction is available; self-occupied property loans get no tax benefit.
Worked example
Example 1 — Home loan ₹50 lakh at 8.5% for 20 years:
- Monthly EMI: ₹43,391
- Total payment: ₹1,04,13,840
- Total interest: ₹54,13,840 (108% of principal)
- Month 1 split: ₹35,417 interest + ₹7,974 principal
- Month 120 (year 10): ₹23,615 interest + ₹19,776 principal
- Month 240 (final): ₹305 interest + ₹43,086 principal
Example 2 — Car loan ₹10 lakh at 9.5% for 5 years:
- Monthly EMI: ₹20,990
- Total payment: ₹12,59,400
- Total interest: ₹2,59,400 (26% of principal — much lower than home loan due to shorter tenure)
Example 3 — Personal loan ₹5 lakh at 14% for 3 years:
- Monthly EMI: ₹17,089
- Total payment: ₹6,15,204
- Total interest: ₹1,15,204 (23% of principal)
- The high rate makes a personal loan expensive even over a short tenure — far worse than home loans.