EMI Calculator
Every loan — home, car, personal — runs on one formula. This calculator shows your EMI, but more importantly it shows the total interest: the number lenders hope you won't compute.
Perspective: a ₹50 lakh home loan at 9% for 20 years means an EMI of ~₹44,986 — and total interest of ~₹58 lakh. You pay back more than double. Seeing that number changes how you think about tenure and prepayment.
Four steps, thirty seconds.
Enter the loan amount. The principal you're borrowing (after down payment).
Set the interest rate. Your loan's annual reducing-balance rate — check your sanction letter.
Choose the tenure. Longer tenure = smaller EMI but much more total interest.
Study the amortization table. Notice how early EMIs are mostly interest. Then try our Home Loan Prepayment Calculator to fight back.
The formula: EMI = P × r × (1+r)n / ((1+r)n − 1), where r is the monthly rate and n the number of months.
Worked example: ₹50 lakh at 9% for 20 years → EMI ₹44,986; total paid ≈ ₹1.08 crore; interest ≈ ₹58 lakh.
Reducing-balance EMI formula — the regulatory standard for Indian retail loans (RBI fair-practices framework).
Lenders usually cap total EMIs at 40–50% of monthly income. Financial planners suggest keeping it under 35–40% so one shock doesn't break you.
Floating rates (linked to repo/EBLR) usually start lower and have no prepayment penalty on home loans. Fixed rates cost more for certainty. Over long tenures, floating has historically won in India.
Interest is charged on the outstanding balance, which is largest at the start. As principal shrinks, the interest portion falls — that's the amortization curve in the table above.
Three ways: shorter tenure, lower rate (balance transfer), or prepayments. A ₹1 lakh yearly prepayment on the example above saves ~₹20 lakh in interest.
No — EMI covers principal + interest only. Processing fees, insurance and GST are extra; factor 0.5–1% of the loan for them.
Disclaimer: Educational illustration only — not financial advice. Reducing-balance method with monthly rests; fees, insurance and taxes not included.