EMI Calculator
Work out the monthly EMI for a home, car, or personal loan — and see how much of what you repay is actually interest.
₹30,00,000
Monthly EMI
₹26,035
Total payment ₹62.48 L over 20 years
Understanding your EMI
An Equated Monthly Instalment (EMI) keeps your payment fixed while the mix inside it changes every month: interest is charged on the outstanding balance, and whatever remains of the EMI reduces the principal. That is why the year-wise schedule shows interest dominating early years and principal dominating later ones.
The proportion bar above is the number lenders don’t advertise: on long tenures, total interest can approach or exceed the amount you borrowed. Shortening tenure, negotiating even 0.25% off the rate, or making small annual prepayments all shrink the orange segment disproportionately.
Frequently asked questions
How is 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. Early EMIs are mostly interest; later ones are mostly principal.
Does a longer tenure reduce my EMI?
Yes, but it raises your total interest substantially. A ₹30 lakh loan at 8.5% costs about ₹26,035/month over 20 years (≈₹32.5 lakh total interest) versus ₹37,196/month over 10 years (≈₹14.6 lakh total interest). Choose the shortest tenure your budget can absorb.
Can prepayment reduce my interest cost?
Significantly. Prepayments cut the outstanding principal directly, so all future interest is computed on a smaller base. RBI rules bar prepayment penalties on floating-rate loans to individuals.
What decides my loan interest rate?
Your credit score, income stability, loan-to-value ratio, and the lender's benchmark (usually repo-linked for floating home loans). A score above 750 typically gets the best advertised rates.
This calculator is for education only and is not financial advice. Actual EMIs may differ slightly due to lender rounding, fees, and disbursal dates.