How to use the EMI calculator
Step 1 — Choose what you want to work out
The instalment is the usual one, but you can also solve for how much you could borrow on a payment you can afford, how long a loan would take at a given payment, or what rate you are actually being charged. Fill in the other three and the fourth appears as you type.
Step 2 — Check how the interest is charged
Leave it on reducing balance for a home, car or normal personal loan. Switch to flat rate only if the lender quoted one — and read what the page then tells you, because the two are not comparable.
Step 3 — Read the split, not just the instalment
The bar under the figure shows how much of everything you repay is principal and how much is interest. On a 20-year home loan the interest is usually the larger half.
Step 4 — Try paying extra
Put an amount in extra every month, or a lump sum with the instalment number you would pay it after. The page tells you how many months it removes and how much interest it saves.
Step 5 — Look at the year-by-year table
Principal, interest and closing balance for each calendar year. Press Show every month for the full instalment-by-instalment schedule.
Step 6 — Take it with you
Copy summary for a message or an email, or download the entire schedule as a CSV to open in a spreadsheet and compare lenders side by side.
About the EMI calculator
This works out the equated monthly instalment on any loan, in seven currencies, together with the total interest, the full repayment schedule and what happens if you pay some of it off early. It is free, needs no account, and every figure is calculated in your browser — nothing you type about your finances is sent anywhere.
How the instalment is worked out
A reducing-balance loan uses the standard annuity formula:
EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1)
where P is the amount borrowed, n is the number of monthly instalments, and r is the monthly rate — the annual rate divided by 12 and then by 100. A 9% loan has a monthly rate of 0.0075.
Worked through: borrow 10,00,000 at 9% for 5 years and the instalment is 20,758.36. In the first month, interest is 10,00,000 × 0.0075 = 7,500, so only 13,258.36 comes off the loan. By the last instalment the interest has fallen to 154.53 and almost the whole payment is principal. Over the five years you repay 12,45,501 in total, of which 2,45,501 is interest.
If the rate is 0% — a genuine no-cost EMI — the instalment is simply the amount divided by the number of months: 60,000 over 6 months is 10,000 a month, with no interest at all. The calculator accepts that; many refuse it.
Reducing balance or flat rate: the difference that costs the most
This is the single most useful thing on the page, and it is where quoted rates mislead people.
- Reducing balance charges interest only on what you still owe. As the balance falls, so does the interest, which is why the early instalments are mostly interest and the later ones mostly principal. Every home loan, car loan and bank personal loan works this way.
- Flat rate charges interest on the entire original amount for the entire term, no matter how much you have already repaid. It is common on consumer-durable finance, many gold loans and a good deal of non-bank personal lending — and the number quoted always sounds lower.
The conversion is brutal. Borrow 1,00,000 for 5 years at 10% flat: interest is 1,00,000 × 10% × 5 = 50,000, so you repay 1,50,000 in 60 instalments of 2,500. Now ask what reducing-balance rate produces an instalment of 2,500 on 1,00,000 over 60 months — the answer is 17.27%.
So a “10% flat” loan and a 17.27% bank loan cost you exactly the same. As a rough rule, a flat rate is worth somewhere approaching double the equivalent reducing rate over a multi-year term. Whenever a lender quotes a flat rate, switch this calculator to flat, read the equivalent it shows you, and compare that figure with the bank’s.
Paying it off early
Anything you pay above the instalment comes straight off the principal, and because every future month’s interest is charged on that principal, the saving compounds for the rest of the loan.
Take a home loan of 25,00,000 at 8.5% over 20 years. The instalment is 21,695.58, and over the full term you repay 52,06,939 — of which 27,06,939 is interest, more than the loan itself.
- Pay 5,000 extra every month and the loan clears in 155 instalments instead of 240 — almost seven years sooner — saving 10,89,361 in interest.
- Add a 2,00,000 lump sum after the second year as well and it finishes in 137 instalments, saving 13,61,848.
Timing matters more than size. Prepaying early removes interest from every remaining month; the same amount paid in the final years removes very little, because by then most of what is left is principal you would have repaid anyway.
Before committing, check the loan agreement. Floating-rate home loans made to individuals in India cannot carry a prepayment penalty — the RBI prohibits it — but fixed-rate loans and many personal and business loans do, typically a percentage of the amount prepaid.
Working backwards: what can I borrow, and for how long?
Most people arrive with a payment in mind rather than a loan amount. The mode buttons at the top let you start from whichever figure you actually know:
- How much I can borrow. At 9% over 5 years, an instalment of 25,000 supports a loan of 12,04,334.
- How long it will take. Borrow 10,00,000 at 9% and pay 25,000 a month and it clears in 48 instalments rather than the 60 a standard quote would give you.
- What rate am I being charged. Enter the amount, the instalment and the term and the calculator solves for the rate — the only way to check a quote that is presented as “just 25,000 a month” with no percentage anywhere.
That last one is worth using on any offer that avoids naming a rate. It is the same arithmetic run in reverse, so the answer is exact rather than an estimate.
The rate you are quoted is not the rate you pay
Fees do not change the advertised rate, but they certainly change the cost. Enter the processing fee, insurance or documentation charge and the calculator shows the true annual cost of the money you actually receive.
On a 10,00,000 loan at 9% over 5 years:
- A 20,000 fee deducted from the payout means you receive 9,80,000 but repay as though you had 10,00,000. The true cost is 9.87%, not 9%.
- The same fee added to the loan instead raises the instalment from 20,758.36 to 21,173.52, which works out at 9.85%.
Not a huge gap on a five-year loan — but on a short-term personal loan, where the same fee is spread over far fewer instalments, it can add several percentage points. Compare lenders on this figure rather than on the headline rate.
Prepay to finish sooner, or to pay less each month?
When you make a lump-sum prepayment, a lender will usually offer you a choice, and the two options are worth strikingly different amounts. On a 25,00,000 home loan at 8.5% over 20 years, paying 2,00,000 after the second year:
- Shorten the loan — the instalment stays at 21,695.58 and the loan finishes in 203 instalments instead of 240, saving 6,06,271 in interest.
- Lower the instalment — the term stays at 240 and the payment drops to 19,884.67, saving 1,91,158.
The same money, the same day, and a difference of more than four lakh. Shortening the loan is worth far more, because interest is charged for time; reducing the instalment helps monthly cash flow instead. Choose deliberately — and note that many lenders quietly default to the second.
Step up with your salary
If your income rises each year, raising the instalment with it is the least painful way to cut a long loan short. Tick the step-up option and set a percentage.
On the same 25,00,000 loan at 8.5% over 20 years, raising the instalment 5% a year clears it in 147 instalments instead of 240 — almost eight years early — and saves 9,75,856 in interest. The payment starts at 21,695.58 and finishes at 38,962.15, which after fifteen years of salary increases is usually a smaller burden than it looks now.
What happens if the rate moves
A floating-rate loan reprices whenever the benchmark does, and the calculator models both of the outcomes your lender can choose between. On 25,00,000 at 8.5% over 20 years, if the rate rises to 9.5% from the twenty-fifth instalment:
- Keep the instalment at 21,695.58 and the loan stretches from 240 to 288 instalments — four extra years — with 10,20,227 more interest.
- Keep the tenure at 240 instalments and the payment rises to 23,192.04 a month.
Indian lenders normally do the first by default, because the instalment is what borrowers notice. It is also the more expensive of the two. You can usually ask for the other, and now you can see what asking is worth.
Reading the schedule
The chart above it draws the whole loan at a glance: the green line is what you still owe, and the shaded area is the interest paid so far. On a long loan the two cross surprisingly late.
The year-by-year table shows how much principal and interest you pay in each calendar year and what is left at the end of it. The monthly table underneath gives every instalment with its date, the split, the rate applied and the balance. Copy a link to this scenario puts every figure you have entered into a URL, so you can send a complete comparison to someone else or keep it in a note for later.
Two things surprise people the first time they look:
- The early years barely dent the loan. On the 20-year example above, the balance after the first full year is still over 24,00,000 of the original 25,00,000.
- The last instalment is usually a slightly different amount. Rounding leaves a few units either way, so the final payment is adjusted to clear exactly what remains. That is what a lender does too.
Why the bank’s figure may differ slightly
This calculator gives the contractual instalment for the amount, rate and tenure you enter. A sanction letter can differ for reasons that have nothing to do with the arithmetic:
- Rounding. Most lenders round the instalment to a whole unit.
- Broken-period interest. If the loan is disbursed mid-month, the first payment often carries a few extra days of interest.
- Fees rolled in. Processing fees, insurance premiums, documentation charges and GST may be added to the amount financed, which raises the instalment.
- Floating rates move. A home loan tied to a benchmark changes over its life; lenders usually adjust the tenure rather than the instalment.
Use these figures for planning and for comparing offers, not as a quotation.
Where this fits with the other tools
For savings rather than borrowing, Compound Interest Calculator and RD & FD Maturity Calculator work the other way round, and PPF Calculator covers the long-term scheme. Percentage Calculator handles one-off percentage questions, and Currency Converter deals with rates between currencies.
Frequently asked questions
What is EMI?
An equated monthly instalment: the same amount every month for the whole term, covering both interest and repayment of the loan. What changes month to month is the split — early instalments are mostly interest, later ones mostly principal.
How is EMI calculated?
EMI = P × r × (1+r)n ÷ ((1+r)n − 1), with P the loan amount, n the number of months and r the monthly rate. At 0% it is simply the amount divided by the number of months.
What is the difference between a flat rate and a reducing-balance rate?
A reducing-balance rate charges interest on what you still owe; a flat rate charges it on the full original amount for the whole term. A 10% flat rate over five years costs the same as a 17.27% reducing-balance rate. Always convert before comparing — this calculator does it for you.
Can it handle a no-cost or 0% EMI offer?
Yes. Enter 0 as the rate and the instalment is the amount divided by the months. Worth knowing: “no-cost EMI” in retail usually means the interest has been converted into a discount you do not receive, or a processing fee — the money is generally in the price rather than absent.
How much interest will I pay in total?
It is shown beside the instalment, and it is often larger than people expect. On 25,00,000 at 8.5% over 20 years the interest comes to 27,06,939 — more than the amount borrowed.
Does a longer tenure reduce my EMI?
Yes, and it increases the total cost, usually sharply. The instalment falls because you are repaying the principal more slowly, which means interest is charged on a larger balance for longer. Compare the total-interest figure, not just the monthly one.
How much can I save by paying extra each month?
On the 20-year example above, 5,000 extra a month clears the loan 85 months early and saves 10,89,361 in interest. Enter your own figures in the prepayment box to see yours.
Is it better to prepay early or later?
Early, by a wide margin. A prepayment removes interest from every month that follows it, so the same amount is worth far more in year two than in year fifteen.
Will I be charged for prepaying?
Depends on the loan. Floating-rate home loans to individuals in India cannot carry a prepayment charge under RBI rules. Fixed-rate loans, and many personal and business loans, often do — commonly a percentage of the amount prepaid. Check the agreement first.
Why is my bank’s EMI slightly different?
Rounding, broken-period interest on a mid-month disbursal, and fees or insurance added to the financed amount. The arithmetic here is standard; the differences come from the terms around it.
Does the calculator include processing fees or insurance?
No. It works from the amount, rate and tenure alone. If a fee is being added to your loan rather than paid upfront, add it to the loan amount to see the real instalment.
How much loan can I get for an EMI of 25,000?
At 9% over 5 years, 25,000 a month supports about 12,04,334. Switch the top of the page to How much I can borrow and put in your own rate and term — a longer term lets the same payment carry a larger loan, at the cost of much more interest.
The lender only quoted a monthly payment. How do I find the rate?
Use What rate I am being charged: enter the amount, the payment and the number of instalments, and the calculator solves for the rate. Any offer that avoids naming a percentage is worth checking this way.
Does the calculator include processing fees?
It can. Enter the fee and say whether it is deducted from the payout or added to the loan, and you get the true annual cost rather than the advertised rate. A 20,000 fee on a 10,00,000 five-year loan at 9% makes the real cost 9.87%.
Should I reduce my EMI or my tenure after a prepayment?
Reducing the tenure saves far more. On a 25,00,000 loan at 8.5%, a 2,00,000 prepayment after two years saves 6,06,271 if you keep the instalment and shorten the loan, but only 1,91,158 if you keep the term and lower the payment. Reduce the instalment only if monthly cash flow is the problem.
What happens to my home loan if interest rates rise?
Lenders usually keep the instalment the same and extend the tenure. On a 25,00,000 loan at 8.5%, a rise to 9.5% after two years adds 48 instalments — four years — and 10,20,227 in interest. Keeping the tenure instead would raise the payment to 23,192.04. Both are shown so you can decide which to ask for.
Can I save the numbers or send them to someone?
Copy a link to this scenario puts everything you entered into a URL. Anyone opening it sees the same calculation. Nothing is uploaded — the link is assembled in your browser and only travels if you paste it somewhere.
Is my loan information stored?
No. Everything is calculated inside your browser, nothing is transmitted, and closing the tab discards it.
