Home loan
- Input
- ₹50,00,000 at 8.5% for 30 years
- Output
- EMI ₹38,446 · interest ₹88,40,442
Over 30 years the interest exceeds the loan itself. Cutting the term to 20 years raises the EMI to ₹43,391 but saves ₹34 lakh in interest.
EMI Calculator
An EMI calculator works out the fixed monthly payment on a loan and splits it into interest and principal. The instalment itself is easy to find anywhere; what usually is not shown is the amortisation schedule that proves it — and most schedules are built from a rounded instalment, so the balance never quite reaches zero. This one keeps the instalment exact and lets the final payment absorb the remainder, exactly as a lender does.
Runs entirely in your browser — your figures are never uploaded.
How is EMI calculated?
EMI is calculated as P × r × (1+r)^n ÷ ((1+r)^n − 1), where P is the loan amount, r is the monthly interest rate, and n is the number of months. A ₹50 lakh loan at 8.5% over 30 years gives an EMI of ₹38,446.
This calculator is a computation tool, not financial advice. Confirm figures with your lender before committing — their fees, rounding and interest-accrual method may differ.
₹
%
Annual rate, as quoted by the lender
years
Monthly EMI
₹43,391
240 payments over 20 years
- Principal
- ₹50,00,000
- Total interest
- ₹54,13,879
- Total repaid
- ₹1,04,13,879
More than the amount borrowed
- Principal — 48%
- Interest — 52%
₹
An extra amount added to every payment
Repayment schedule
| Period | Principal | Interest | Balance |
|---|---|---|---|
| Year 1 | ₹99,511 | ₹4,21,182 | ₹49,00,489 |
| Year 2 | ₹1,08,307 | ₹4,12,387 | ₹47,92,181 |
| Year 3 | ₹1,17,881 | ₹4,02,813 | ₹46,74,300 |
| Year 4 | ₹1,28,300 | ₹3,92,394 | ₹45,46,000 |
| Year 5 | ₹1,39,641 | ₹3,81,053 | ₹44,06,359 |
| Year 6 | ₹1,51,984 | ₹3,68,710 | ₹42,54,375 |
| Year 7 | ₹1,65,418 | ₹3,55,276 | ₹40,88,957 |
| Year 8 | ₹1,80,039 | ₹3,40,655 | ₹39,08,918 |
| Year 9 | ₹1,95,953 | ₹3,24,741 | ₹37,12,965 |
| Year 10 | ₹2,13,274 | ₹3,07,420 | ₹34,99,691 |
| Year 11 | ₹2,32,125 | ₹2,88,569 | ₹32,67,566 |
| Year 12 | ₹2,52,643 | ₹2,68,051 | ₹30,14,923 |
| Year 13 | ₹2,74,974 | ₹2,45,720 | ₹27,39,949 |
| Year 14 | ₹2,99,279 | ₹2,21,415 | ₹24,40,670 |
| Year 15 | ₹3,25,733 | ₹1,94,961 | ₹21,14,937 |
| Year 16 | ₹3,54,525 | ₹1,66,169 | ₹17,60,412 |
| Year 17 | ₹3,85,862 | ₹1,34,832 | ₹13,74,550 |
| Year 18 | ₹4,19,968 | ₹1,00,726 | ₹9,54,582 |
| Year 19 | ₹4,57,090 | ₹63,604 | ₹4,97,492 |
| Year 20 | ₹4,97,492 | ₹23,202 | ₹0 |
The final payment settles the remaining balance exactly, so the schedule closes at zero rather than drifting.
The maths
EMI Calculator formula
Formula
EMI = P × r × (1 + r)^n / ((1 + r)^n − 1)
- P
- Principal — the amount borrowed
- r
- Monthly interest rate — the annual rate divided by 12, then by 100
- n
- Total number of monthly instalments
Worked example
A ₹50,00,000 home loan at 8.5% a year over 30 years
Inputs
- Principal (P)
- ₹50,00,000
- Annual rate
- 8.5%
- Monthly rate (r)
- 0.085 ÷ 12 = 0.0070833
- Months (n)
- 30 × 12 = 360
Working
- (1 + r)^n = 1.0070833^360 = 12.6875
- Numerator: 50,00,000 × 0.0070833 × 12.6875 = 4,49,318
- Denominator: 12.6875 − 1 = 11.6875
- EMI = 4,49,318 ÷ 11.6875
EMI = ₹38,446 a month. Total paid ₹1,38,40,442, of which ₹88,40,442 is interest.
How to
How to use the EMI Calculator
- 1
Enter the loan amount
Put in the principal — the amount actually borrowed, after any down payment. The instalment is proportional to this, so halving the loan halves the EMI.
- 2
Add the interest rate
Enter the annual rate your lender quoted. It is divided by 12 to give the monthly rate the formula needs; you do not need to convert it yourself.
- 3
Set the term
Choose the tenure in years or months. A longer term lowers the instalment but raises total interest, and the summary shows both so the trade-off is visible.
- 4
Read the schedule
The amortisation table shows what each payment does. Early instalments are mostly interest; the crossover point is usually much later than people expect.
Reference
EMI per ₹1,00,000 borrowed, by rate and term
| Rate | 10 years | 15 years | 20 years | 30 years |
|---|---|---|---|---|
| 7.0% | ₹1,161 | ₹899 | ₹775 | ₹665 |
| 8.0% | ₹1,213 | ₹956 | ₹836 | ₹734 |
| 8.5% | ₹1,240 | ₹985 | ₹868 | ₹769 |
| 9.0% | ₹1,267 | ₹1,014 | ₹900 | ₹805 |
| 10.0% | ₹1,322 | ₹1,075 | ₹965 | ₹878 |
Examples
EMI Calculator examples
Car loan
- Input
- ₹8,00,000 at 9.5% for 5 years
- Output
- EMI ₹16,798 · interest ₹2,07,879
Shorter terms keep total interest modest. The first instalment is ₹6,333 interest and ₹10,465 principal.
Interest-free instalments
- Input
- ₹60,000 at 0% for 12 months
- Output
- EMI ₹5,000 · interest ₹0
The standard formula divides by zero at a 0% rate. This calculator falls back to equal principal slices instead of returning an error.
Why use it
What the EMI Calculator gives you
A schedule that actually closes
The instalment is kept unrounded while the table is built and the last payment settles the remainder, so the final balance is zero rather than a few hundred rupees adrift.
The real cost, not just the instalment
Total interest is shown next to the monthly figure, which is the number that decides whether a longer tenure is worth it.
The interest-to-principal crossover
The schedule shows the month where a payment starts going mostly to principal — usually far later in the term than borrowers assume.
Nothing is uploaded
Loan amounts and rates are calculated in the page. Your borrowing plans are not sent to a server or logged.
Good to know
EMI Calculator limitations
- Assumes a fixed rate for the whole term. A floating-rate loan changes the instalment or the tenure whenever the benchmark moves.
- Processing fees, insurance and documentation charges are excluded — these are usually 0.5–2% of the loan and are not part of the EMI formula.
- Prepayments are not modelled. Paying extra reduces both the balance and the interest, so real totals will be lower than shown.
- Assumes payment on the same day each month. A lender computing daily-reducing interest will differ slightly.
Summary
EMI Calculator in short
- EMI = P × r × (1+r)^n / ((1+r)^n − 1), with r as the monthly rate.
- A ₹50 lakh loan at 8.5% over 30 years costs ₹38,446 a month.
- Over a long tenure the interest can exceed the amount borrowed.
- Extending the term lowers the instalment but sharply raises total interest.
- The amortisation schedule here closes at exactly zero rather than drifting.
FAQ
EMI Calculator questions
What is the formula for EMI?
EMI = P × r × (1 + r)^n / ((1 + r)^n − 1). P is the principal, r is the monthly interest rate — the annual rate divided by 12 and then by 100 — and n is the number of monthly instalments. The same formula covers home, car and personal loans.
Why is most of my early EMI going to interest?
Interest is charged on the outstanding balance, which is highest at the start. On a 30-year loan at 8.5%, the first instalment is about 92% interest. The crossover where principal exceeds interest arrives around year 18.
Should I choose a longer tenure for a lower EMI?
It lowers the monthly outgo but raises the total sharply. Extending a ₹50 lakh loan at 8.5% from 20 to 30 years cuts the EMI by ₹4,945 a month but adds about ₹34 lakh in interest over the life of the loan.
How does prepaying affect the EMI?
A lump-sum prepayment reduces the outstanding principal, so you either keep the EMI and finish earlier or keep the tenure and pay less each month. Prepaying early saves far more, because that is when the balance — and so the interest — is largest.
Does it work for a 0% interest offer?
Yes. The standard formula is 0 ÷ 0 at a zero rate, which is why many calculators return an error or NaN. This one detects the case and divides the principal evenly across the instalments instead.
What happens if my rate is floating?
Lenders usually hold the instalment steady and change the tenure instead, so a rate rise quietly extends your loan. Re-run the calculation at the new rate to see the effect, and ask your lender which of the two they adjust.
How does this differ from a flat-rate calculation?
A flat rate charges interest on the original amount for the whole term, so a quoted 8% flat is roughly 14–15% in reducing-balance terms. This calculator uses reducing balance, which is how home and car loans actually work.
How much EMI can I afford?
Lenders generally cap total instalments at 40–50% of net monthly income, including any existing loans. That is an underwriting limit rather than a recommendation — the comfortable figure depends on your own commitments.
Is my loan information sent anywhere?
No. Every figure is computed by JavaScript in your browser. Nothing about the amount you are borrowing, your rate or your tenure is transmitted, stored or logged.
Sources
- Reducing-balance annuity formula, standard actuarial notation
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