EMI stands for Equated Monthly Installment. It is a fixed payment made by a borrower to a lender at a specified date each calendar month, combining both interest and principal repayments.

How is EMI calculated?

EMI is calculated using the formula: EMI = [P × r × (1+r)^n] / [((1+r)^n) - 1], where P is Principal loan amount, r is monthly reducing interest rate (Annual rate / 12 / 100), and n is the tenure in months.

Does increasing tenure reduce EMI?

Yes, stretching the tenure spreads the repayment over more months, which reduces the monthly EMI. However, it significantly increases the total interest cost over the life of the loan.

Does increasing tenure increase total interest?

Yes. Because interest is charged on the outstanding balance month-on-month, a longer tenure keeps the principal outstanding for longer, leading to higher accumulated interest.

What happens if I make a loan prepayment?

A loan prepayment is a lump-sum amount paid to the lender in addition to your standard EMI. This goes directly toward reducing the outstanding principal balance, reducing your future interest burden.

Is it better to reduce EMI or tenure after prepayment?

Reducing tenure is generally much more cost-efficient because it saves significantly more interest. Reducing EMI is better if you need immediate relief in your monthly cash flow.

How much loan can I afford?

Lenders typically look at your Fixed Obligation to Income Ratio (FOIR). Ideally, your total monthly EMI burden (including the new loan) should not exceed 40% to 50% of your net monthly income.

How does interest rate affect EMI?

Since interest is calculated on a reducing balance, even a minor 0.5% rate change can result in thousands of rupees saved or added in EMIs over long terms like 15–20 years.

What is an amortization schedule?

It is a month-by-month table showing the progression of your loan, detailing how much of each monthly payment goes toward principal repayment and how much goes toward interest, along with the outstanding balance.

What is the difference between principal and interest?

Principal is the actual money you borrow from the lender. Interest is the fee charged by the lender for borrowing that money. Initially, a major portion of your EMI goes toward interest, but over time, the share shifts toward principal.

EMI Calculator – Loan EMI & Repayment Planner

EMI Calculator

Free online Indian EMI Calculator with Amortization Schedule. Plan Home, Car, and Personal loans. Simulate prepayments, loan comparisons, and interest rate changes.

⚡ Interactive Calculation Engine Active

Please enable JavaScript in your browser to run live computations, 2D envelope diagrams, and export PDF reports.

How to Use EMI Calculator

Choose a loan preset: Home Loan, Car Loan, Personal Loan, Education Loan, or Custom.
Enter the principal loan amount, interest rate, and tenure.
Optionally expand Advanced settings to add Processing fees, GST, and Insurance charges.
Review your Monthly EMI, Total Interest, and Total Repayment Cost instantly.
Simulate prepayment strategies (Reduce EMI vs. Reduce Tenure) or top-ups to see interest savings.
Compare up to 3 loan scenarios side-by-side or download your amortization schedule as a PDF/CSV.

Home Loan EMI Calculator

Home loans are long-term commitments (15 to 30 years). Since the tenure is long, interest makes up a massive portion of the total repayment. Using a home loan EMI calculator helps you see the impact of interest rates and plan regular prepayments to finish the loan early.

Car Loan & Personal Loan Calculator

Car loans typically have tenures of 3 to 7 years with interest rates between 8% and 12%. Personal loans are unsecured with higher interest rates (10.5% to 24%) and shorter tenures (1 to 5 years). Estimating these EMIs helps avoid over-leveraging.

EMI Amortization Schedule

The amortization schedule acts as your loan dashboard. By tracking opening and closing monthly balances, you can see how much principal has been retired. This is crucial for calculating tax benefits under Section 24(b) (interest) and Section 80C (principal) of the Income Tax Act in India.

Loan Prepayment & How to Reduce Interest

Making part-payments is the most effective way to save money. By paying an extra lump-sum equal to just one EMI per year, or by step-up prepayments by 5% annually, you can reduce a 20-year loan down to 12–15 years, saving lakhs in interest.

Frequently Asked Questions

What is EMI?: EMI stands for Equated Monthly Installment. It is a fixed payment made by a borrower to a lender at a specified date each calendar month, combining both interest and principal repayments.
How is EMI calculated?: EMI is calculated using the formula: EMI = [P × r × (1+r)^n] / [((1+r)^n) - 1], where P is Principal loan amount, r is monthly reducing interest rate (Annual rate / 12 / 100), and n is the tenure in months.
Does increasing tenure reduce EMI?: Yes, stretching the tenure spreads the repayment over more months, which reduces the monthly EMI. However, it significantly increases the total interest cost over the life of the loan.
Does increasing tenure increase total interest?: Yes. Because interest is charged on the outstanding balance month-on-month, a longer tenure keeps the principal outstanding for longer, leading to higher accumulated interest.
What happens if I make a loan prepayment?: A loan prepayment is a lump-sum amount paid to the lender in addition to your standard EMI. This goes directly toward reducing the outstanding principal balance, reducing your future interest burden.
Is it better to reduce EMI or tenure after prepayment?: Reducing tenure is generally much more cost-efficient because it saves significantly more interest. Reducing EMI is better if you need immediate relief in your monthly cash flow.
How much loan can I afford?: Lenders typically look at your Fixed Obligation to Income Ratio (FOIR). Ideally, your total monthly EMI burden (including the new loan) should not exceed 40% to 50% of your net monthly income.
How does interest rate affect EMI?: Since interest is calculated on a reducing balance, even a minor 0.5% rate change can result in thousands of rupees saved or added in EMIs over long terms like 15–20 years.
What is an amortization schedule?: It is a month-by-month table showing the progression of your loan, detailing how much of each monthly payment goes toward principal repayment and how much goes toward interest, along with the outstanding balance.
What is the difference between principal and interest?: Principal is the actual money you borrow from the lender. Interest is the fee charged by the lender for borrowing that money. Initially, a major portion of your EMI goes toward interest, but over time, the share shifts toward principal.