What is the EMI formula?

EMI = P × r × (1+r)ⁿ / ((1+r)ⁿ−1), where P is principal, r is monthly interest rate, and n is total number of months.

How can I reduce my EMI?

You can reduce EMI by increasing the loan tenure, making a larger down payment, or negotiating a lower interest rate with your bank.

Does prepayment reduce EMI or tenure?

Most banks allow you to choose. Reducing tenure saves more interest overall. Reducing EMI lowers monthly burden.

Home›Calculators›EMI Calculator

🏦 EMI Calculator

Calculate monthly EMI, total interest paid and complete amortization schedule for any loan.

Loan Amount (₹)

₹

Annual Interest Rate (%)

Tenure

Tenure Type

💡 EMI Formula: P × r × (1+r)ⁿ ÷ ((1+r)ⁿ−1)
where r = monthly rate, n = total months

🎯 Use this calculator for: Home loan EMI for SBI, HDFC Bank, ICICI Bank, Axis Bank, PNB, Bank of Baroda · Car loan EMI for Maruti, Hyundai, Tata Motors · Personal loan EMI calculation · Education loan EMI · Two-wheeler loan EMI · Used car loan EMI · Gold loan EMI · Business loan EMI · Loan against property EMI

What is EMI?

EMI stands for Equated Monthly Instalment — a fixed payment amount you make to your bank or lender every month to repay a loan. Every EMI has two components: a portion that repays the principal (the amount borrowed) and a portion that pays the interest charged by the bank.

Over the loan tenure, the interest portion gradually decreases while the principal repayment increases. This is called an amortization schedule — the chart above shows exactly this breakdown for your loan.

EMI Formula

EMI = P × r × (1 + r)ⁿ ÷ [(1 + r)ⁿ − 1]

Where: P = Principal loan amount | r = Monthly interest rate (Annual rate ÷ 12 ÷ 100) | n = Loan tenure in months

Example Calculation

Home Loan Example:
Loan Amount: ₹50,00,000 | Interest Rate: 8.5% per annum | Tenure: 20 years (240 months)

Monthly rate r = 8.5 ÷ 12 ÷ 100 = 0.00708
EMI = 50,00,000 × 0.00708 × (1.00708)²⁴⁰ ÷ [(1.00708)²⁴⁰ − 1]
EMI = ₹43,391/month | Total Interest = ₹54,13,880 | Total Payment = ₹1,04,13,880

Tips to Reduce Your EMI

⬇️

Increase Tenure

Spreading the loan over more years reduces your monthly EMI, though you pay more total interest.

💰

Larger Down Payment

Paying more upfront reduces your principal, which directly lowers your EMI amount.

🏦

Compare Bank Rates

Even a 0.5% lower interest rate on a ₹50L loan saves you ₹3–4 lakh over 20 years.

📅

Prepay When Possible

Making partial prepayments reduces principal faster, cutting both EMI and total interest.

EMI for Different Loan Types in India

Home Loan: Typically 8–9.5% interest, tenures up to 30 years. Largest EMIs due to high principal but tax benefits under Section 80C and 24(b).

Car Loan: Interest rates of 8.5–12%, tenures of 3–7 years. No tax benefit but essential for salaried individuals needing personal transport.

Personal Loan: Highest rates at 12–24%, tenures of 1–5 years. No collateral required but should only be used for emergencies due to high interest cost.

Education Loan: 8–12% interest, moratorium period during study. Tax deduction available under Section 80E for interest paid.