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Guide · Calculators & Tools

EMI Calculator — Home, Car & Personal Loan

Enter your loan amount, interest rate and tenure to see your monthly EMI, total interest payable and a full 12-month amortisation schedule — instantly.

Written by
TaxClue Editorial Desk
Updated
18 August 2026
Reading time
4 min
Questions
13 answered
  • Instant result
  • Amortisation schedule
  • FY 2025-26 rates
Free tool

EMI Calculator

Quick Answer

This EMI calculator works out your fixed monthly instalment for any loan. Enter the principal, annual interest rate and tenure, and it returns your monthly EMI, total interest, total amount payable and a month-by-month amortisation schedule. It uses the standard formula EMI = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1), where r is the monthly rate and n the number of months.

Formula

How EMI Is Calculated

An EMI (Equated Monthly Instalment) is the fixed amount you pay every month to repay a loan over a set period. It has two parts — principal and interest. In the early months the interest share is largest because it is charged on the full outstanding balance; as the principal falls, each EMI carries more principal and less interest. This gradual shift is called amortisation.

EMI = P × r × (1+r)n ÷ ((1+r)n − 1)  |  P = principal, r = annual rate ÷ 12 ÷ 100, n = tenure in months.

InputMeaningExample
P — PrincipalAmount borrowed₹30,00,000
r — Monthly rateAnnual rate ÷ 12 ÷ 1008.5% → 0.00708
n — TenureNumber of monthly instalments20 yrs → 240
EMI — ResultFixed monthly payment≈ ₹26,035

Example: ₹30L at 8.5% p.a. for 20 years → EMI ≈ ₹26,035/month; total interest ≈ ₹32.5L.

FY 2025-26

Typical Loan Rates, Tenure & Tax Benefit

Indicative rates for salaried borrowers with a strong credit score. Your actual rate depends on the lender, credit profile and loan-to-value.

Loan TypeTypical Rate (p.a.)Typical TenureTax Benefit
Home loan8.35% – 9.5%10 – 30 yearsSection 24(b) interest up to ₹2L + 80C principal up to ₹1.5L
Car loan8.75% – 13%1 – 7 yearsNone (personal use)
Personal loan10.5% – 24%1 – 5 yearsNone
Education loan8% – 15%5 – 15 yearsSection 80E — full interest, up to 8 years

Rates are indicative for FY 2025-26 and vary by lender and borrower profile.

Longer tenure = lower EMI but more interest

Stretching a ₹30L home loan from 15 to 25 years cuts the EMI but can add lakhs in total interest. Use the amortisation schedule above to see how much of each early EMI is interest — that is where prepayment saves the most.

Prepayment saves the most in the early years

RBI bars prepayment/foreclosure charges on floating-rate home loans taken by individuals. Because early EMIs are interest-heavy, part-prepaying in the first few years shortens the tenure and cuts total interest sharply.

Claiming home-loan interest or 80C principal on your return? Get it filed right.

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Reduce your EMI

Ways to Lower Your EMI or Total Interest

  • Longer tenure lowers the monthly EMI — but increases total interest paid.
  • Larger down payment reduces the principal, so both the EMI and interest fall.
  • Negotiate or refinance to a lower rate when repo-linked rates drop.
  • Part-prepay early — the interest component is highest in the first years.
  • Improve your credit score before applying to qualify for a better rate.
Sources
  1. Loan & interest norms: rbi.org.in
  2. Home-loan tax (Sec 24 & 80C): incometax.gov.in
  3. Education-loan interest: Section 80E, Income-tax Act 1961

Disclaimer: This guide is general information based on the law and notifications in force when it was last updated. It is not professional advice for your case — rates, thresholds and due dates change, so check the current position or speak to our CA team before you act on it.

People also ask

EMI Calculator — Frequently Asked Questions

Short, direct answers to the 13 questions readers ask most on this topic.

EMI (Equated Monthly Instalment) is a fixed amount paid every month to repay a loan over a set period. It is calculated as EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1), where P is the principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the tenure in months. Each EMI covers both interest and principal, with interest higher in the early months.

Yes. The calculator is completely free, runs entirely in your browser, and does not need any login or personal details. Enter the loan amount, rate and tenure and it instantly shows your EMI, total interest, total payable and a 12-month amortisation schedule.

An amortisation schedule shows how each EMI is split between principal and interest across the loan. Early EMIs are mostly interest because it is charged on the full outstanding balance; over time the principal share rises. The calculator displays the first 12 months so you can see this split.

You can reduce your EMI by increasing the loan tenure (lower EMI but more total interest), making a larger down payment to cut the principal, negotiating a lower interest rate or refinancing when rates drop, making partial prepayments, and improving your credit score before applying for a better rate.

No. A longer tenure lowers the monthly EMI but increases the total interest you pay over the life of the loan, because interest accrues for more months. A shorter tenure raises the EMI but reduces total interest. Use the calculator to compare both.

Prepayment reduces your outstanding principal, lowering total interest and either shortening the tenure or cutting future EMIs. RBI prohibits prepayment penalties on floating-rate home loans taken by individuals. Fixed-rate, personal and car loans may carry a 2%–5% penalty. Prepaying in the early years, when interest is highest, saves the most.

Missing an EMI triggers a penalty (typically 1%–2% of the overdue amount), lowers your credit score, and adds the missed amount to your balance with interest. After three consecutive misses the loan may be classified as an NPA, and for secured loans the lender can start recovery. Contact your lender early to seek a moratorium or restructuring.

Home loans run 10–30 years at roughly 8.35%–9.5% p.a. for large amounts and offer tax benefits (Section 24 interest up to ₹2L, 80C principal up to ₹1.5L). Car loans run 1–7 years at about 8.75%–13% for smaller amounts with no personal tax benefit. Home loans are secured by mortgage; car loans by hypothecation of the vehicle.

Indicative FY 2025-26 rates for strong-credit salaried borrowers: home loans 8.35%–9.5%, car loans 8.75%–13%, personal loans 10.5%–24% and education loans 8%–15% per annum. Your actual rate depends on the lender, credit score, income and loan-to-value.

Yes. Under the old tax regime, the interest portion of your home-loan EMI is deductible up to ₹2 lakh a year under Section 24(b) for a self-occupied house, and the principal portion up to ₹1.5 lakh under Section 80C. Education-loan interest is deductible under Section 80E. Car and personal loans generally have no personal tax benefit.

Yes. Under Section 80E, the entire interest paid on an education loan for higher studies (for yourself, spouse or children) is deductible from taxable income, with no upper limit, for up to 8 consecutive years starting from the year repayment begins. There is no deduction on the principal.

The calculator gives an accurate mathematical EMI for the rate and tenure you enter. Your actual outgo may differ slightly due to processing fees, GST on charges, insurance add-ons, part-months, or a floating rate that changes over time. Always confirm the final schedule with your lender.

The calculator assumes a fixed rate for the full tenure. For a floating (repo-linked) loan, the EMI or tenure changes whenever the benchmark rate moves. To gauge the impact, re-run the calculation with the new rate; the result is a snapshot at the rate you enter.