EMI Calculator
The EMI formula used across India for home, car and personal loans: principal, annual rate and tenure in months, giving the fixed monthly installment and the total interest over the loan.
One fixed installment, every month
EMI — Equated Monthly Installment — is the standard structure of Indian lending: a constant monthly payment that blends principal and interest, heavy on interest at the start, heavy on principal at the end. Banks from Mumbai to Delhi quote it identically because the formula is identical.
EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1), r = annual rate ÷ 12, n = tenure in months
Example: ₹5,00,000 at 9.5% for 60 months: EMI ≈ ₹10,499, total interest ≈ ₹1,29,900 over the five years. Extend the tenure to 84 months and the EMI falls to about ₹8,240 while the interest climbs past ₹1,92,000 — the tenure lever, visible in one comparison. (The currency selector at the top can present results in ₹.)
Prepayment changes everything downstream
Because early EMIs are mostly interest, a prepayment in year one removes far more future interest than the same prepayment in year four. Indian lenders must allow floating-rate home-loan prepayment without penalty for individual borrowers; fixed-rate and non-home loans vary — the contract governs.
How this is calculated
Standard amortizing EMI: monthly rate = nominal annual rate ÷ 12, level payment over the tenure in months, payments at month end, no intermediate rounding. Total interest is summed from the month-by-month amortization used for the balance chart. Part-payments and floating-rate resets during the tenure are outside this single-rate model.
Frequently asked questions
Does EMI change when the rate is floating?
Yes — the bank either re-computes the EMI or (commonly in India) holds the EMI and stretches the tenure. A rate rise with a fixed EMI can quietly add many months; ask which treatment your loan uses.
EMI or a step-up plan?
Some lenders offer graduated EMIs that rise with expected income. They cost more total interest than the level EMI for the same initial outlay because principal falls slower — the schedule, not the first payment, is where to compare.
What is the difference between EMI and the loan calculator?
Nothing mathematical — EMI is the same amortization under its Indian name, conventionally entered with tenure in months. This page exists because the term, the tenure convention and the questions around it are their own world.
How much of my first EMI is principal?
At 9.5% on ₹5,00,000, the first month's interest is ₹3,958 of a ₹10,499 EMI — about 38% is principal. The halfway point of the loan is not the halfway point of the principal; that comes later.
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