EMI Calculator
Compute the Equated Monthly Instalment for a home loan, car loan, personal loan, or education loan. See total interest, total payout, and how each parameter changes the monthly outflow.
🇮🇳All amounts in ₹ INR · India tax law · FY 2025–26
Loan inputs
Monthly EMI
₹26,035
Total interest
₹32,48,327
Total payment
₹62,48,327
What is an EMI?
An EMI (Equated Monthly Instalment) is the fixed monthly payment a borrower makes against a loan. It combines two parts — interest on the outstanding principal and a small principal repayment. In the early years of a long loan, interest dominates each EMI; in the later years, principal dominates. The EMI itself stays constant (unless the floating rate changes).
The EMI formula
EMI = P × r × (1 + r)n / [ (1 + r)n − 1 ]- P = loan principal
- r = monthly interest rate (annual % ÷ 12 ÷ 100)
- n = total months
Loan types this calculator handles
- Home loan — ₹20L–₹2Cr typical, 7.5–9% floating, 15–30 year tenure.
- Car loan — ₹3L–₹30L, 8–11%, 3–7 year tenure.
- Personal loan — ₹50k–₹40L, 10–18%, 1–5 year tenure (highest interest among unsecured loans).
- Education loan — ₹2L–₹1.5Cr, 8–12% (with subsidies for select courses), 5–15 year tenure.
- Gold / LAS loan — secured against gold or shares, 7.5–12%.
How to reduce total interest paid
- Shorter tenure. Going from 30y to 20y on a ₹50L home loan at 8.5% saves ~₹40L in interest.
- Prepay the principal. Even one extra EMI a year cuts total interest dramatically.
- Negotiate the rate. A 0.25% reduction on a ₹1Cr loan over 20y saves ~₹3.5L.
- Switch to a cheaper lender. Balance-transfer fees usually pay back in 12–18 months if the rate drops 0.5%+.
- Avoid extending tenure when rates rise — pay a slightly higher EMI instead.
Tax deductions on loans
- Home loan — Section 24(b): up to ₹2L/yr interest deduction; Section 80C: up to ₹1.5L/yr principal.
- Education loan — Section 80E: full interest deduction for 8 years, no cap.
- Personal and car loans: no direct tax benefit (unless car is used for business).
FAQ
It is correct at the current rate. If your bank revises the rate, your EMI may change (or the tenure may extend). Use this as a baseline and re-run when rates move.
Most lenders cap total EMIs at 50% of net monthly income. From a personal-finance lens, keep all EMIs under 40% to leave room for savings, insurance, and lifestyle.
Only if cashflow demands it. Longer tenure means much higher total interest. Take the longest tenure you can afford but plan to prepay each year.
For floating-rate retail loans (homes, personal), RBI bans prepayment penalties. Fixed-rate loans may have 2–4% prepayment fees — read the sanction letter.