EMI Calculator

Calculate monthly installments for Home Loan, Car Loan & Personal Loan

₹25.0 Lakh
8.5% per annum
20 yr 0 mo

Monthly EMI

₹21,696

Principal Amount

₹25,00,000

48.0%

Total Interest

₹27,06,939

52.0%

Total Amount Payable

₹52,06,939

PrincipalInterest

Amortization Schedule

MonthEMIPrincipalInterestBalance
1₹21,696₹3,987₹17,708₹24,96,013
2₹21,696₹4,015₹17,680₹24,91,997
3₹21,696₹4,044₹17,652₹24,87,953
4₹21,696₹4,073₹17,623₹24,83,881
5₹21,696₹4,101₹17,594₹24,79,779
6₹21,696₹4,130₹17,565₹24,75,649
7₹21,696₹4,160₹17,536₹24,71,489
8₹21,696₹4,189₹17,506₹24,67,300
9₹21,696₹4,219₹17,477₹24,63,081
10₹21,696₹4,249₹17,447₹24,58,832
11₹21,696₹4,279₹17,417₹24,54,553
12₹21,696₹4,309₹17,386₹24,50,244

📖 Complete Guide to EMI — Everything You Need to Know

"An EMI (Equated Monthly Installment) is the fixed amount you pay every month to repay a loan. It is one of the most important numbers in personal finance because it directly affects your monthly cash flow."

⚙️ How EMI Works

Indian banks use the reducing balance method. This means interest is charged only on the outstanding principal. In the early months, more goes toward interest; as you repay, more goes toward principal.

🔢 The Formula

EMI = [P × R × (1+R)^N] / [(1+R)^N − 1]
  • P: Principal Loan Amount
  • R: Monthly Interest Rate (Annual / 12 / 100)
  • N: Tenure in months

💡 How to Reduce EMI

  • Down PaymentPay more upfront to reduce principal.
  • Interest RateNegotiate for even a 0.5% reduction.
  • Credit ScoreKeep CIBIL above 750 for best rates.
  • TenureLonger tenure = lower EMI but higher total interest.

Typical Loan Types in India

🏠

Home Loan

8.5%–11%

Up to 30 yrs

🚗

Car Loan

9%–15%

Up to 7 yrs

💳

Personal Loan

12%–24%

Up to 5 yrs

🎓

Education

8%–15%

Post-course

🛡️ The 40% Rule

Financial health check: Your total monthly EMIs should not exceed 40% of your take-home salary. If you earn ₹60k, stay under ₹24k total EMI.

🚀 Prepayment Strategy

Windfalls (bonuses/inheritance) should go toward partial prepayment. Even one extra EMI per year can cut years off a 20-year home loan.

Tax Benefits (Section 24b & 80C)

Home loan interest is deductible up to ₹2 Lakh under Sec 24(b). Principal is deductible up to ₹1.5 Lakh under Sec 80C. First-time buyers can get an extra ₹50k deduction under Sec 80EE.

✓ Interest Savings
✓ Principal Benefits

Frequently Asked Questions