Loan EMI calculator — know your EMI before you sign
Enter the loan amount, interest rate and tenure to see your monthly EMI, total interest and a year-wise repayment schedule. Then read how the formula works, and how prepayment can save you lakhs.
- Year-wise repayment schedule
- Works for home, personal and car loans
- Free, no sign-up, no data stored
Every EMI = interest on what you still owe + a slice of principal
Your loan EMI, total interest and repayment schedule
Move the sliders or type exact numbers. The schedule below the calculator shows how much principal and interest you repay each year.
Loan EMI calculator
Indicative EMI for a reducing-balance loan. Your lender's schedule, fees and rate resets may differ.
The EMI formula, explained simply
An EMI (equated monthly instalment) is a fixed monthly payment that clears both the interest and the principal of a loan by the end of its tenure. Banks and NBFCs across India, from your branch in Dehradun to lenders in Delhi NCR, use the same standard formula:
EMI = P × r × (1 + r)n ÷ [(1 + r)n − 1]
P = loan amount · r = monthly rate (annual rate ÷ 12 ÷ 100) · n = number of monthly instalments
Worked example: ₹30 lakh home loan for 20 years
Take a loan of ₹30,00,000 over 20 years, so n = 240 months.
- At 7.50%, r = 0.075 ÷ 12 = 0.00625. Then (1.00625)240 ≈ 4.46, and the EMI works out to about ₹24,168. Total interest over 20 years is about ₹28,00,271.
- At 7.75%, the EMI rises to about ₹24,628, and total interest to about ₹29,10,830.
A difference of just 0.25% adds about ₹461 a month, or roughly ₹1,10,559 over the full tenure. That is why your credit score and the lender's spread matter so much. Our guide on how to improve your CIBIL score explains how to qualify for better pricing.
Reducing balance: why early EMIs are mostly interest
Almost every home, personal and car loan in India uses the reducing-balance method. Each month, interest is charged only on the amount you still owe. In the example above, the first EMI of ₹24,168 splits into about ₹18,750 of interest and only ₹5,418 of principal. As the balance falls, the interest portion shrinks and the principal portion grows. Turn on the schedule in the calculator to watch this happen year by year.
Be careful with "flat rate" offers, which some dealers and informal lenders quote. A flat rate charges interest on the original amount for the whole tenure, so the effective cost is far higher than the same number on a reducing balance.
How tenure and interest rate change what you really pay
Monthly EMI and total interest on a ₹30 lakh loan at three illustrative rates. These are example rates, not offers from any lender.
| Tenure | At 7.50% | At 7.75% | At 8.00% |
|---|---|---|---|
| 15 years | ₹27,810 Interest ₹20,05,867 | ₹28,238 Interest ₹20,82,889 | ₹28,670 Interest ₹21,60,521 |
| 20 years | ₹24,168 Interest ₹28,00,271 | ₹24,628 Interest ₹29,10,830 | ₹25,093 Interest ₹30,22,368 |
| 25 years | ₹22,170 Interest ₹36,50,921 | ₹22,660 Interest ₹37,97,959 | ₹23,154 Interest ₹39,46,346 |
| 30 years | ₹20,976 Interest ₹45,51,517 | ₹21,492 Interest ₹47,37,252 | ₹22,013 Interest ₹49,24,657 |
Computed with the standard reducing-balance EMI formula. Excludes processing fees, insurance and taxes.
Longer tenure, lower EMI, much more interest
Stretching from 20 to 30 years cuts the EMI but increases total interest sharply. A longer tenure helps eligibility, but plan to prepay so you don't actually take 30 years.
Rate matters most on long loans
On a 30-year loan, each 0.25% adds far more total interest than on a 15-year loan. Shop around on the spread, and compare current home loan interest rates.
What today's repo rate hike means for your EMI
On 7 Oct 2026, the RBI raised the repo rate by 25 basis points to 5.50%. Floating-rate home loans from banks are linked to an external benchmark, usually the repo rate, and reset at least once every three months. When your rate resets from 7.50% to 7.75% on the ₹30 lakh example, your lender can:
- Raise the EMI by about ₹461 a month and keep the 20-year tenure, or
- Keep the EMI the same and extend the tenure, here by about 12 months.
RBI rules on floating-rate resets require lenders to tell you about the change and give you a choice between a higher EMI, a longer tenure, or a mix. If you can afford it, a higher EMI keeps total interest lower. The next MPC meeting is scheduled for 2–4 Dec 2026.
Prepayment: the RBI rules from 1 January 2026
The RBI's Pre-payment Charges Directions, effective 1 January 2026, say that banks and NBFCs cannot charge foreclosure or part-prepayment fees on floating-rate loans given to individuals for non-business purposes, with or without a co-borrower. This covers most floating-rate home loans and many floating-rate car loans. Fixed-rate loans can still carry a charge, which is common for personal loans and some car loans. Your Key Fact Statement (KFS) must show any applicable charge.
A simple part-prepayment strategy
On the same ₹30 lakh, 20-year loan at 7.50%, paying an extra ₹1 lakh at the end of every year (keeping the EMI unchanged) closes the loan in about 143 months instead of 240. Total interest falls from about ₹28,00,271 to about ₹15,49,632.
- Prepay early. A rupee prepaid in year two saves far more interest than a rupee prepaid in year fifteen.
- Choose "reduce tenure" over "reduce EMI" when you can, because it saves more interest.
- Keep an emergency fund first. Do not empty your safety buffer to prepay; a home loan is often the cheapest debt you have.
- Clear costly debt first. Credit card dues and personal loans usually cost more than a home loan, so prepay those before the home loan.
For a long-term borrower, the real question is often "prepay or invest?" That depends on your loan rate, your tax position and your comfort with market-linked investments. We are happy to walk you through the trade-offs at our Ghanta Ghar office in Dehradun or on a call.
How much EMI can you afford?
Lenders look at your FOIR (fixed obligations to income ratio): all your EMIs, including the new one, as a share of your net monthly income. A typical lender norm is around 40–50%, sometimes higher for high-income borrowers. Being eligible is not the same as being comfortable. Many households in Dehradun and across Uttarakhand prefer to keep total EMIs closer to 30–35% of take-home pay so that school fees, insurance premiums and monthly SIPs keep running even in a tight month.
Use it for any loan
This works as a home loan EMI calculator, a personal loan EMI calculator and a car loan EMI calculator, because all three use the same reducing-balance formula. See typical rates and the fine print in our guides to home loan interest rates, personal loan interest rates and car loan interest rates. Prefer Hindi? Use the ईएमआई कैलकुलेटर (हिंदी).
Frequently asked questions
How is loan EMI calculated?
EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly instalments. For example, ₹30 lakh for 20 years at 7.50% gives an EMI of about ₹24,168.
Will my EMI go up after the RBI repo rate hike?
If you have a floating-rate loan linked to the repo rate, your lender will usually pass on the 0.25% increase at the next reset date. Most lenders extend the tenure first and keep the EMI the same, but you can ask to increase the EMI instead, which keeps total interest lower.
Is there a penalty for prepaying a home loan?
Under the RBI Pre-payment Charges Directions, effective 1 January 2026, lenders cannot levy foreclosure or part-prepayment charges on floating-rate loans taken by individuals for non-business purposes. Fixed-rate loans can still carry a charge, so check your Key Fact Statement and sanction letter.
Is it better to reduce EMI or reduce tenure after a prepayment?
Reducing tenure usually saves more interest, because the same EMI clears a smaller balance faster. Reducing EMI makes sense if you need more monthly breathing room, for example after a job change or a new expense.
How much EMI can I afford?
Many lenders typically allow total EMIs of about 40–50% of your net monthly income (the FOIR), depending on your income level and profile. For comfort, many families aim to keep all EMIs well below that so that savings and SIPs can continue.
Does this calculator work for personal and car loans?
Yes. Any reducing-balance loan with a fixed monthly instalment works the same way. Enter your personal loan or car loan amount, rate and tenure. Processing fees, insurance and GST are not included, so add them separately.
Why is the interest so high in the first few years?
Interest is charged on the outstanding balance, which is highest at the start. In the early years most of each EMI goes towards interest; the principal share grows every month as the balance falls.
Ready to start your investment journey?
Visit us at Ghanta Ghar, Dehradun, or talk to us on WhatsApp. We serve investors across Uttarakhand and Delhi NCR.