EMI Calculator

An EMI is the fixed amount paid every month on a reducing-balance loan; it is worked out from the principal, the monthly interest rate and the number of months.

Every lender quotes an annual rate and a tenure, but what decides whether a loan is affordable is the monthly instalment and the total interest over its life. This calculator gives both, using the standard reducing-balance formula that banks and housing finance companies in India use. It also handles zero-interest schemes correctly, which the plain formula cannot.

1. Enter the amount you are actually borrowing, after any down payment.
2. Enter the annual interest rate the lender has quoted.
3. Enter the tenure and choose whether it is in years or months.
4. Read the monthly EMI, then check the total interest — that is the real cost of the loan.

EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)

P = principal
r = annual rate ÷ 12 ÷ 100  (the monthly rate)
n = tenure in months

Interest is charged on the balance that is still outstanding, so the interest part of each instalment falls over time while the principal part rises. When the rate is zero the formula divides by zero, so the instalment is simply the principal spread over the months.

A ₹30,00,000 home loan at 8.5% a year over 20 years.

Over twenty years the interest is more than the amount borrowed — which is why a shorter tenure, if the EMI is affordable, costs far less overall.

• This is a calculation, not financial advice. It does not recommend a loan, a lender or a rate.
• Floating-rate loans change over time. The figure here assumes the rate you entered applies for the whole tenure.
• Lenders round instalments to the rupee and set the first due date by their own convention, so a sanction letter may differ slightly from this figure.