EMI Calculator
Calculate monthly EMI for home loans, car loans, and personal loans. View total interest, amortisation schedule, and principal vs interest breakdown.
Loan Details
Loan Amount
Annual Interest Rate
Loan Tenure
EMI Summary
Monthly EMI
₹26,035
Principal
₹30.00 L
Total Interest
₹32.48 L
Total Payment
₹62.48 L
Payment Breakdown
Principal 48.0%
Interest 52.0%
Amortisation Schedule
| Period | Principal Paid | Interest Paid | Total Paid | Outstanding Balance |
|---|---|---|---|---|
| Year 1 | ₹59,707 | ₹2,52,709 | ₹3,12,416 | ₹29,40,293 |
| Year 2 | ₹64,984 | ₹2,47,432 | ₹3,12,416 | ₹28,75,309 |
| Year 3 | ₹70,728 | ₹2,41,688 | ₹3,12,416 | ₹28,04,580 |
| Year 4 | ₹76,980 | ₹2,35,436 | ₹3,12,416 | ₹27,27,600 |
| Year 5 | ₹83,785 | ₹2,28,632 | ₹3,12,416 | ₹26,43,815 |
| Year 6 | ₹91,190 | ₹2,21,226 | ₹3,12,416 | ₹25,52,625 |
| Year 7 | ₹99,251 | ₹2,13,166 | ₹3,12,416 | ₹24,53,374 |
| Year 8 | ₹1,08,024 | ₹2,04,393 | ₹3,12,416 | ₹23,45,351 |
| Year 9 | ₹1,17,572 | ₹1,94,844 | ₹3,12,416 | ₹22,27,779 |
| Year 10 | ₹1,27,964 | ₹1,84,452 | ₹3,12,416 | ₹20,99,815 |
| Year 11 | ₹1,39,275 | ₹1,73,141 | ₹3,12,416 | ₹19,60,540 |
| Year 12 | ₹1,51,586 | ₹1,60,831 | ₹3,12,416 | ₹18,08,954 |
| Year 13 | ₹1,64,985 | ₹1,47,432 | ₹3,12,416 | ₹16,43,969 |
| Year 14 | ₹1,79,568 | ₹1,32,849 | ₹3,12,416 | ₹14,64,402 |
| Year 15 | ₹1,95,440 | ₹1,16,977 | ₹3,12,416 | ₹12,68,962 |
| Year 16 | ₹2,12,715 | ₹99,701 | ₹3,12,416 | ₹10,56,247 |
| Year 17 | ₹2,31,517 | ₹80,899 | ₹3,12,416 | ₹8,24,730 |
| Year 18 | ₹2,51,981 | ₹60,435 | ₹3,12,416 | ₹5,72,749 |
| Year 19 | ₹2,74,254 | ₹38,163 | ₹3,12,416 | ₹2,98,495 |
| Year 20 | ₹2,98,495 | ₹13,921 | ₹3,12,416 | ₹0 |
What is EMI?
Equated Monthly Instalment (EMI) is a fixed payment you make to your lender every month to repay a loan. Each EMI covers two components: the interest on the outstanding principal and a portion of the principal itself. In early EMIs, the interest component is large and the principal repayment is small; as the loan matures, this reverses — a direct result of the reducing-balance interest calculation method.
The EMI Formula Explained
EMI = P × r × (1+r)^n ÷ [(1+r)^n − 1], where P is the principal loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the total number of monthly instalments. For a ₹30 Lakh home loan at 8.5% for 20 years: r = 0.00708, n = 240, EMI = ₹26,035. The formula ensures the entire loan is repaid by the last EMI with consistent monthly payments throughout.
How Loan Tenure Affects EMI
A longer tenure reduces your monthly EMI but significantly increases the total interest paid over the loan life. For ₹30 Lakhs at 8.5%: a 10-year tenure means EMI ₹37,194 with total interest ₹14.6 Lakhs; a 20-year tenure means EMI ₹26,035 with total interest ₹32.5 Lakhs. Choosing a shorter tenure saves nearly ₹18 Lakhs in interest — a strong incentive to pay off loans faster if cash flow permits.
Prepayment Strategy
Making a lump-sum prepayment early in a loan drastically reduces total interest. Each rupee of principal prepaid at the beginning of a 20-year loan saves roughly ₹1.80–₹2.00 in interest (at 8.5%). When prepaying, always choose to reduce tenure over reducing EMI — keeping EMI constant and cutting tenure maximises interest savings. Most banks allow prepayment of floating-rate loans without penalty.
EMI for Different Loan Types
Home loans typically carry the lowest interest rates (8–9.5%) with the longest tenures (up to 30 years) and largest amounts. Car loans range from 8–12% with 1–7 year tenures. Personal loans are the most expensive (10–24%) with tenures up to 5 years and no collateral requirement. Education loans range from 8–15%, with a moratorium period during the study and 6 months thereafter before EMI begins.
Floating vs Fixed Rate EMI
Fixed-rate loans keep your EMI constant regardless of RBI rate changes, providing predictability but typically at 1–2% higher rates than floating options. Floating-rate loans (linked to MCLR, RLLR, or repo rate) adjust periodically — your EMI or tenure changes with rate movements. Since 2019, RBI mandates repo-rate linkage for floating home loans, making rate transmission faster. Choose fixed rates when interest rates are at historical lows and are expected to rise.
FOIR and Loan Eligibility
Banks assess loan eligibility using the Fixed Obligation to Income Ratio (FOIR) — total EMI obligations as a percentage of gross monthly income. Most banks cap FOIR at 40–50%. If your gross income is ₹1 Lakh/month and existing EMIs are ₹20,000, the maximum new EMI a bank will typically approve is ₹25,000–₹30,000. A higher credit score (750+) often allows slightly higher FOIR limits and better interest rates.
Tax Benefits on Loan EMI
Home loan EMIs have dual tax benefits: principal repayment (Section 80C, up to ₹1.5 Lakhs/year) and interest payment (Section 24B, up to ₹2 Lakhs/year for self-occupied property; unlimited for let-out property). Education loan interest is deductible under Section 80E for up to 8 years. Personal and car loan EMIs have no direct tax deductions unless the loan is used for business purposes.
Frequently Asked Questions
Can I reduce my EMI after taking a loan?
Yes, in two ways. If you have a floating-rate loan and interest rates fall, your bank should pass on the reduction — either as a lower EMI or shorter tenure. Alternatively, you can make a part-prepayment and request your bank to recalculate the EMI on the reduced outstanding principal. Some lenders allow balance transfer to another bank at a lower rate, which directly reduces EMI.
What is a moratorium and how does it affect EMI?
A moratorium is a repayment holiday — a period where you don't pay EMI, typically granted during education loans (study period + 6 months) or sometimes during financial distress. Interest continues to accrue during the moratorium and is added to the principal, resulting in higher EMIs when repayment begins. Avoid optional moratoriums unless absolutely necessary, as they increase total interest costs significantly.
What is an EMI bounce charge?
When your bank account has insufficient funds on the EMI due date and the auto-debit fails, the bank charges an EMI bounce fee — typically ₹200–₹500 per instance. Repeated bounces can harm your CIBIL score. Most banks also levy a penal interest of 2–3% per month on overdue amounts. Set up an auto-debit and ensure sufficient balance a day before the EMI date.
What is the MCLR and how does it affect my home loan EMI?
MCLR (Marginal Cost of Funds based Lending Rate) is the minimum rate below which banks cannot lend. Floating home loans older than 2019 may still be linked to MCLR, which resets every 6–12 months. Since 2019, RBI mandates external benchmark-linked rates (repo rate + spread) for floating retail loans — these reset quarterly and transmit RBI rate cuts or hikes faster than MCLR.
Is it better to invest the surplus instead of prepaying a loan?
Compare the after-tax interest rate on your loan versus the expected after-tax return on your investment. If your home loan rate is 8.5% and you're in the 30% tax bracket, the effective rate after Section 24B deduction is ~6.1%. If your equity SIP returns 12–14% CAGR, investing is mathematically better. For high-interest personal or credit card loans (15–40%), always prepay before investing.