The monthly instalment for any loan, what it costs you in interest, and how each year of payments splits between interest and the loan.
The EMI Calculator shows the fixed amount you pay every month on a home, car or personal loan, how much of everything you pay is interest, and how each year of payments splits between interest and the loan itself.
It uses the reducing-balance formula Indian banks use: EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan, r the yearly rate ÷ 12 ÷ 100 and n the number of months. Ten lakh at 8.5% for 20 years comes to ₹8,678 a month.
Use it as a home loan EMI calculator, a car loan EMI calculator or a personal loan EMI calculator - the formula is the same, only the amount, rate and tenure change. Move the sliders or type exact numbers, and the ring shows at a glance how much of everything you pay goes to interest.
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1). P is the loan amount, r is the yearly rate divided by 12 and by 100, and n is the number of monthly instalments. At 0% interest it is simply the loan divided by the months.
Interest is charged on what you still owe. At the start you owe the most, so most of the EMI goes to interest; as the loan shrinks, more of each EMI repays the loan itself.
Yes, but you pay more interest in total. Ten lakh at 8.5% costs about ₹10.8 lakh in interest over 20 years, and about ₹17.7 lakh over 30 years, for an EMI only ₹989 lower.
Banks round each month's interest and EMI to the rupee, and some start interest from the disbursement date. The difference is usually a rupee or two.
No. Processing fees, insurance and GST on fees are paid separately; add them to the cost when you compare loans.
At 8.5% for 20 years, about ₹26,035 a month, with about ₹32.5 lakh paid in interest over the loan. Put your own rate and tenure in the calculator for your exact figure.
At 10% for 5 years, ₹10,624 a month; at 12% for 5 years, ₹11,122. A shorter tenure raises the EMI but cuts the interest you pay.
No. A lower EMI usually means a longer tenure, and a longer tenure means more interest. Choose the shortest tenure whose EMI fits comfortably in your monthly budget.