EMI calculator
Monthly EMI for a home, car or bike loan, with total interest and a year-by-year repayment table.
Type your loan details and press Calculate.
How the EMI is calculated
An EMI (equated monthly instalment) is the fixed amount that repays a loan, with its interest, in equal monthly payments. Banks in India compute it on the reducing balance: each month's interest is charged on what you still owe, and the rest of the instalment reduces the principal. The formula is
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)
where P is the amount borrowed, r is the monthly rate (the yearly rate divided by 12 and by 100), and n is the number of months. Total interest is EMI × n − P.
Worked example
A home loan of Rs 10,00,000 at 8.5% for 20 years. The monthly rate is 8.5 ÷ 1200 = 0.0070833 and n is 240. The EMI comes to Rs 8,678.23. Over 240 months you pay Rs 20,82,776 in all, of which Rs 10,82,776 is interest. In the first year about Rs 84,000 of your Rs 1,04,139 goes to interest; in the last year almost all of it goes to principal. The table under the result shows this shift year by year.
What changes the number
- Tenure matters more than most people expect. The same loan over 15 years has an EMI of about Rs 9,847 but total interest of about Rs 7,72,000, three lakh less.
- Floating-rate loans change the rate during the loan. Most banks keep the EMI and stretch or shorten the tenure; some change the EMI. Recalculate with the new rate and the remaining balance to see where you stand.
- Processing fees, insurance bundled into the loan and pre-EMI interest during construction are not in this formula. Add them to the cost of the loan separately.
- Banks round the EMI to the rupee and count days slightly differently, so their figure can differ from this one by a few rupees.
Prepaying
A prepayment reduces the principal, so every later month's interest is smaller. To see the effect, run the calculator again with the reduced balance as the amount and the months left as the tenure; the difference in total interest is what the prepayment saves. Some loans carry a prepayment or foreclosure charge and some do not; your loan agreement says which, and it is worth reading that clause before you pay a lump sum.