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EMI Calculator

Calculate monthly EMI, total interest, and complete amortization schedule for Home, Car, or Personal Loans.

  • Runs entirely in your browser
  • No sign-up, nothing stored
  • Formula explained below

Loan details

Home, car or personal loan — the maths is the same.

₹
₹50K₹1Cr
%
5%20%
yrs
1 yrs30 yrs
Your monthly EMI
₹21,696

240 monthly payments at 8.5% — you repay ₹52,06,939 in total.

Principal
₹25,00,000
Total interest
₹27,06,939
Total payment
₹52,06,939
  • Principal48%
  • Interest52%

Where each year's EMIs go

Early years are mostly interest; the principal share grows as the balance falls.

  • Principal
  • Interest
Interest in first EMI
82%
₹17,708 of your first payment
Interest vs. loan
108%
Total interest as a share of the amount borrowed
Principal overtakes interest
Month 143
Year 12 of 20
Yearly outgo
₹2,60,347
12 EMIs

Outstanding balance

How much you still owe at the end of each year.

Most of your EMI is interest until month 143
Prepaying early in the loan, before this point, cuts the most interest because it reduces the balance that interest is charged on.
Rates can change
Floating-rate loans reset with the lender's benchmark. Re-run this calculator whenever your rate changes to see the new EMI or tenure.

Repayment schedule

Opening balance, EMI split and closing balance for every period.

YearOpeningEMIs paidPrincipalInterestClosing
Year 1₹25,00,000₹2,60,347₹49,756₹2,10,591₹24,50,244
Year 2₹24,50,244₹2,60,347₹54,154₹2,06,193₹23,96,091
Year 3₹23,96,091₹2,60,347₹58,940₹2,01,407₹23,37,150
Year 4₹23,37,150₹2,60,347₹64,150₹1,96,197₹22,73,000
Year 5₹22,73,000₹2,60,347₹69,820₹1,90,527₹22,03,180
Year 6₹22,03,180₹2,60,347₹75,992₹1,84,355₹21,27,188
Year 7₹21,27,188₹2,60,347₹82,709₹1,77,638₹20,44,479
Year 8₹20,44,479₹2,60,347₹90,020₹1,70,327₹19,54,459
Year 9₹19,54,459₹2,60,347₹97,977₹1,62,370₹18,56,482
Year 10₹18,56,482₹2,60,347₹1,06,637₹1,53,710₹17,49,846
Year 11₹17,49,846₹2,60,347₹1,16,063₹1,44,284₹16,33,783
Year 12₹16,33,783₹2,60,347₹1,26,321₹1,34,026₹15,07,462
Year 13₹15,07,462₹2,60,347₹1,37,487₹1,22,860₹13,69,974
Year 14₹13,69,974₹2,60,347₹1,49,640₹1,10,707₹12,20,335
Year 15₹12,20,335₹2,60,347₹1,62,866₹97,480₹10,57,468
Year 16₹10,57,468₹2,60,347₹1,77,262₹83,085₹8,80,206
Year 17₹8,80,206₹2,60,347₹1,92,931₹67,416₹6,87,275
Year 18₹6,87,275₹2,60,347₹2,09,984₹50,363₹4,77,291
Year 19₹4,77,291₹2,60,347₹2,28,545₹31,802₹2,48,746
Year 20₹2,48,746₹2,60,347₹2,48,746₹11,601₹0
20 yearsReducing-balance method, interest computed monthly

Understanding EMI Calculations, Amortisation Mechanics & Interest Traps

Equated Monthly Instalments (EMIs) follow the reducing-balance amortisation method. Each month, interest is calculated solely on your remaining outstanding principal balance, while the surplus goes toward paying down the principal.

EMI = P × r × (1 + r)ⁿ ÷ [ (1 + r)ⁿ − 1 ]
P
Loan Principal (total amount borrowed)
r
Monthly Interest Rate = (Annual Interest Rate ÷ 12) ÷ 100
n
Total number of monthly instalments (Tenure in Years × 12)

Real-World Example: ₹50 Lakh Home Loan at 8.75% for 20 Years

To illustrate the true cost of borrowing, examine a standard 20-year home loan of ₹50,00,000 at an annual floating interest rate of 8.75%:

  • Monthly EMI: ₹44,186 per month
  • Total Principal Repaid: ₹50,00,000 (47.1% of total outflow)
  • Total Interest Payable: ₹56,04,534 (52.9% of total outflow)
  • Total Overall Outflow: ₹1,06,04,534 (Over 2.1× the borrowed sum!)
The Front-Loaded Interest Trap: In Month 1, of your ₹44,186 EMI, ₹36,458 (82.5%) goes purely toward paying interest, and only ₹7,728 repays principal! It takes nearly 11 to 12 years for the principal portion of your monthly EMI to overtake the interest portion.

Reducing-Balance Method vs. Flat-Rate Interest Trap

Always verify which method your lender uses before signing loan agreements:

Reducing Balance (Standard for Home Loans)

Interest is recalculated every month on the remaining loan balance. As you pay off principal, your monthly interest liability decreases. This is the RBI-mandated standard for all retail housing and auto loans.

Flat Interest Rate (Common in Personal/NBFC Loans)

Interest is charged on the original principal throughout the entire tenure, even when 90% has been repaid. A "10% flat rate" actually corresponds to an effective reducing rate of approximately 17% to 19%!

Tax Benefits on Home Loan EMIs (Income Tax Act)

Borrowers opting for the Old Tax Regime can claim significant tax deductions against housing loan EMIs:

  • • Section 24(b) - Interest Deduction:Deduction of up to ₹2,00,000 per financial year on the interest component for a self-occupied property. For let-out properties, the entire interest can be claimed subject to loss set-off rules.
  • • Section 80C - Principal Repayment:Deduction of up to ₹1,50,000 per year on principal repaid, stamp duty, and registration charges (within the aggregate Section 80C cap).
  • • Important Caveat for New Tax Regime:Under Section 115BAC (New Tax Regime), deductions under Section 24(b) for self-occupied properties and Section 80C are not available. Compare regimes before filing.

Frequently Asked Questions

Why is so much of my early EMI interest?
Interest is computed on your current outstanding principal balance, which is at its absolute peak during the initial years. As principal gradually amortises over time, the interest fraction shrinks and the principal repayment fraction expands, while your total monthly EMI remains constant.
Are there prepayment penalties on home loans in India?
No. Under Reserve Bank of India (RBI) guidelines, banks and Non-Banking Financial Companies (NBFCs) are strictly prohibited from levying foreclosure charges or prepayment penalties on floating-rate housing loans sanctioned to individual borrowers.
How does the RBI Repo Rate affect floating loan EMIs?
Most retail loans in India are pegged to an External Benchmark Lending Rate (EBLR), typically the RBI Repo Rate. When the RBI increases the repo rate, banks automatically revise home loan interest rates upward, usually increasing loan tenure or increasing monthly EMIs.
What is the maximum recommended EMI-to-income ratio (FOIR)?
Lenders evaluate Fixed Obligation to Income Ratio (FOIR). Most banks limit total monthly debt obligations (all EMIs combined) to 40% to 50% of your net monthly take-home salary to ensure you have sufficient liquidity for emergency savings and household living expenses.
Can I claim both HRA exemption and home loan tax deductions?
Yes, under specific circumstances. If you own a home in one city or far from your workplace and reside in rented accommodations closer to your job location, you can claim House Rent Allowance (HRA) under Section 10(13A) alongside home loan deductions under Section 24(b) and 80C.
How much interest can I save by paying one extra EMI per year?
Paying just one additional EMI each year (or prepaying 5% of the principal annually) can reduce a 20-year home loan tenure by approximately 4 to 6 years and save between 20% and 35% of total interest payable over the loan life.
Is it better to choose a longer tenure to get a smaller EMI?
While a longer tenure lowers your monthly cash commitment, it drastically escalates total interest paid. Whenever possible, choose the shortest tenure that fits comfortably within your monthly budget to minimize wealth loss to bank interest.
Does this EMI calculator include insurance, GST, or processing fees?
No. This tool computes pure mathematical principal and interest amortisation. Processing fees (typically 0.25% to 0.5% + 18% GST), documentation charges, and mandatory property insurance must be budgeted separately.

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