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EMI Calculator — Home Loan, Car Loan & Personal Loan

Updated: 3 June 2026  •  Covers FY 2026–27 rates

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: ₹30L loan at 8.5% for 20 years → r = 0.085/12 = 0.007083, n = 240 → EMI = ₹26,035/month
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EMI Calculator — instant result
Enter loan amount, rate, and tenure below. See your EMI, total interest, and full 12-month amortisation schedule instantly.

EMI Calculator

How EMI Works — The Formula Explained

The EMI formula ensures you pay the same amount every month throughout the loan tenure. In the initial months, the interest component is much higher because it is calculated on the full outstanding principal. As you repay, the principal reduces, so each subsequent EMI carries a smaller interest portion and a larger principal repayment — this is called amortisation.

Loan Type Typical Rate Typical Tenure Tax Benefit
Home Loan8.5% – 9.5%10 – 30 yearsSection 24(b) + 80C
Car Loan7.5% – 13%1 – 7 yearsNone (personal)
Personal Loan10% – 24%1 – 5 yearsNone
Education Loan8% – 15%5 – 15 yearsSection 80E (interest)

Frequently Asked Questions

What is EMI and how is it calculated?
EMI (Equated Monthly Instalment) is a fixed amount paid every month to repay a loan over a set period. It is calculated using the formula: EMI = P × r × (1+r)n ÷ ((1+r)n − 1), where P is the principal loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the tenure in months. The EMI covers both principal repayment and interest, with the interest portion higher in early months and reducing over time.
How can I reduce my EMI amount?
You can reduce your EMI by: (1) Increasing the loan tenure — longer tenure means lower EMI but more total interest paid. (2) Making a larger down payment to reduce the principal. (3) Negotiating a lower interest rate with your lender or refinancing when rates drop. (4) Making partial prepayments to reduce the outstanding principal. (5) Improving your credit score before applying to get better interest rates.
What happens if an EMI is missed?
Missing an EMI has multiple consequences: (1) The lender charges a penalty, typically 1%–2% of the overdue EMI amount. (2) Your credit score drops, making future credit harder to obtain. (3) The missed amount is added to your outstanding balance with interest. (4) After 3 consecutive missed EMIs, the loan may be classified as an NPA (Non-Performing Asset). (5) For secured loans (home/car), the lender may initiate recovery proceedings. Always contact your lender if you anticipate a payment difficulty — most offer a moratorium or restructuring.
Is prepayment of a loan beneficial? Are there charges?
Prepayment is highly beneficial as it reduces your outstanding principal, lowering the total interest paid and either shortening the tenure or reducing future EMIs. For home loans: RBI rules prohibit prepayment penalties on floating-rate home loans taken by individuals. For fixed-rate loans, lenders may charge 2%–5% of the prepaid amount. For personal and car loans, banks typically charge 2%–4% prepayment penalty. It is usually most effective to prepay in the early years when the interest component is highest.
How does home loan EMI differ from car loan EMI?
The key differences are: (1) Tenure: Home loans run 10–30 years; car loans 1–7 years. (2) Interest rates: Home loans are typically 8.5%–9.5% p.a.; car loans 7%–15% p.a. (3) Loan amount: Home loans are much larger (₹20L–5Cr+) versus car loans (₹2L–40L). (4) Tax benefit: Home loan interest (up to ₹2L/yr under Section 24) and principal (up to ₹1.5L under 80C) are tax-deductible; car loans generally have no personal tax benefit. (5) Security: Home loans are secured by mortgage; car loans by hypothecation of the vehicle.

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