EMI Calculator
Calculate your Equated Monthly Instalment for home loans, car loans, and personal loans.
₹
₹100000₹100000000
%
1%30%
yrs
1 yrs30 yrs
Monthly EMI
₹43,391
Total Interest
₹54,13,879
Total Payment
₹1,04,13,879
Monthly EMI₹43,391
Principal₹50,00,000
Interest₹54,13,879
How EMI Is Calculated
The EMI calculator uses the standard reducing balance formula:
EMI = P × r × (1 + r)n / ((1 + r)n - 1)
Where P is the loan principal (₹50,00,000), r is the monthly interest rate (8.5% / 12 = 0.7083%), and n is the total number of EMIs (240 months).
Your monthly EMI is ₹43,391, meaning you will pay ₹54,13,879 in interest over 20 years on a ₹50,00,000 loan.
Frequently Asked Questions
What is EMI and how is it calculated?
EMI (Equated Monthly Instalment) is a fixed payment made by a borrower to a lender every month until the loan is fully repaid. It is calculated using the formula: EMI = P x r x (1+r)^n / ((1+r)^n - 1), where P is the principal, r is the monthly interest rate, and n is the total number of months.
Does a higher tenure reduce EMI?
Yes, a longer tenure reduces the monthly EMI because the principal is spread over more months. However, the total interest paid over the loan lifetime increases significantly with a longer tenure.
Can I prepay my loan to reduce EMI burden?
Yes, most banks in India allow part-prepayment of loans. Under RBI guidelines, banks cannot charge prepayment penalties on floating-rate home loans. Prepayment reduces your outstanding principal.
What is the difference between flat rate and reducing balance EMI?
In a flat rate EMI, interest is charged on the entire principal for the full tenure. In reducing balance (which this calculator uses), interest is charged only on the outstanding principal, which decreases with each payment.
How much loan can I afford based on my salary?
As a general rule, your total EMI obligations should not exceed 40-50% of your net monthly income. Banks typically offer home loans up to 60 times your monthly income.