EMI Calculator
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.
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.
| Input | Meaning | Example |
|---|---|---|
| P — Principal | Amount borrowed | ₹30,00,000 |
| r — Monthly rate | Annual rate ÷ 12 ÷ 100 | 8.5% → 0.00708 |
| n — Tenure | Number of monthly instalments | 20 yrs → 240 |
| EMI — Result | Fixed monthly payment | ≈ ₹26,035 |
Example: ₹30L at 8.5% p.a. for 20 years → EMI ≈ ₹26,035/month; total interest ≈ ₹32.5L.
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 Type | Typical Rate (p.a.) | Typical Tenure | Tax Benefit |
|---|---|---|---|
| Home loan | 8.35% – 9.5% | 10 – 30 years | Section 24(b) interest up to ₹2L + 80C principal up to ₹1.5L |
| Car loan | 8.75% – 13% | 1 – 7 years | None (personal use) |
| Personal loan | 10.5% – 24% | 1 – 5 years | None |
| Education loan | 8% – 15% | 5 – 15 years | Section 80E — full interest, up to 8 years |
Rates are indicative for FY 2025-26 and vary by lender and borrower profile.
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.
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.
File with a Tax Expert →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.
EMI Calculator — Frequently Asked Questions
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Turn Your Loan Into Tax Savings
A home or education loan can cut your tax bill by lakhs. TaxClue's CA-led team files your return, claims every eligible Section 24, 80C and 80E deduction, and picks the regime that saves you the most — 100% online, across India.