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EMI Calculator.

Free instant EMI calculator for home, car, and personal loans. See exactly how much interest you'll pay and view your complete amortization schedule.

Last updated: June 15, 2026
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Calculation Results

Monthly EMI ₹43,391
Total Interest ₹54,13,879
Total Payment ₹1,04,13,879

Breakdown

Disclaimer: This calculator provides estimates for educational purposes only. Actual rates and terms may vary based on your lender, credit profile, and market conditions.

Quick Answer

How is EMI calculated on a loan?

EMI is calculated using the reducing balance formula. For a ₹10 lakh loan at 9% annual interest for 5 years, the monthly EMI is ₹10,758. You pay ₹1,45,480 in total interest over the loan tenure.

Formula
EMI = P × r × (1+r)^n / ((1+r)^n - 1) Where: P = Principal | r = Monthly rate (annual÷12÷100) | n = Tenure in months
Example
P=₹10,00,000 | r=9/12/100=0.0075 | n=60 EMI = 10,00,000 × 0.0075 × (1.0075)^60 / ((1.0075)^60 - 1) EMI = ₹10,758/month Total paid: ₹6,45,480 | Interest: ₹1,45,480
Last updated: June 15, 2026

What does this mean?

For a loan of ₹50 Lakhs at an interest rate of 8.5% over 20 years, you will pay a fixed monthly installment (EMI) of ₹43,391.

Over the lifetime of this loan, you will pay exactly ₹54.13 Lakhs in interest alone, making your total amount payable ₹1.04 Crores. This means you are paying 108% of your original loan amount purely as interest to the bank.

EMI (Reducing Balance)

Home loans and personal loans use the standard reducing balance EMI formula:

EMI = P × r × (1+r)^n / ((1+r)^n - 1)
  • P = Principal loan amount
  • r = Monthly interest rate (Annual Rate / 12 / 100)
  • n = Loan tenure in months (Years × 12)

This standard formula is used universally by financial institutions in India and globally to calculate amortizing loans.

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Common mistakes when calculating EMI.

Mistake: Using annual interest rate directly in the formula
Correct: Divide annual rate by 12 to get the monthly rate
Impact: EMI calculated incorrectly by ~10×
Mistake: Ignoring processing fees when comparing loans
Correct: Add 1–2% processing fee to your total borrowing cost
Impact: Underestimates true borrowing cost by ₹8K–₹20K on large loans
Mistake: Calculating on a flat rate instead of reducing balance
Correct: Ensure the lender uses reducing balance — effective rate on a flat rate is nearly 2×
Impact: ₹10L loan at 9% flat costs significantly more than 9% reducing
Mistake: Not accounting for prepayment charges
Correct: Check the lender's prepayment penalty (typically 2–4% on outstanding balance for fixed/personal loans)
Impact: Savings from prepayment may be wiped out by penalties

Amortization Schedule

Month/YrPrincipalInterestPaymentBalance
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How is EMI calculated?

EMI is calculated using the formula: P × r × (1 + r)^n / ((1 + r)^n - 1), where P is the loan amount, r is the monthly interest rate, and n is the tenure in months.

Does a longer tenure mean higher interest?

Yes. While a longer tenure reduces your monthly EMI, it increases the total interest you pay over the life of the loan.

What is an amortization schedule?

It's a complete table of periodic loan payments, showing the amount of principal and the amount of interest that comprise each payment until the loan is paid off.

Can I prepay my home loan?

Yes, most banks allow prepayment. Prepaying reduces your principal amount, which directly reduces the total interest you will pay.

Is the EMI constant throughout the loan?

For fixed-rate loans, the EMI remains constant. For floating-rate loans, the EMI or tenure changes if the bank revises its interest rates.

Further reading.

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