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For individualsRates reviewed September 2026

EMI Calculator for Home, Car and Personal Loans

An EMI calculator turns three inputs, the loan amount, the annual interest rate and the tenure, into the single number that decides whether a loan is affordable: the equated monthly instalment. Every EMI is part interest and part principal, and the split changes every month even though the instalment itself stays the same.

As of September 2026 the RBI policy repo rate stands at 5.25%, and most lenders price home loans off an external benchmark linked to it. Published home loan rates currently run from roughly 7.10% at public sector banks to about 10.50% and above at housing finance companies and NBFCs, with the rate you are actually offered depending on your credit score, income profile and loan-to-value ratio. Car and personal loan rates sit higher still, so run your own numbers rather than a headline rate.

The calculator also shows what most borrowers underestimate: on a twenty-year home loan the interest you pay can exceed the amount you borrowed. Seeing that figure is usually what prompts a shorter tenure or a prepayment plan.

EMI Calculator

The amount the lender actually disburses, not the property price.

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Home loans currently run about 7.10% to 10.50%; personal loans sit higher.

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Leave at zero to see the plain schedule.

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Monthly EMI

₹44,186

over 20 years at 8.75% a year

Total interest payableover 240 instalments
₹56,04,529
Total amount payable₹50 lakh borrowed plus interest
₹1,06,04,529
Interest as a share of the loan
112.09%
Tenure240 months
20 years
First instalment splits as
₹36,458 interest + ₹7,727 principal
Last instalment splits as
₹320 interest + ₹43,866 principal
Paid over a full year
₹5,30,226
  • Assumes the rate holds for the whole tenure. On a floating rate loan this is the EMI only until the next reset.

The formula

EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)

P
Principal, the loan amount actually disbursed
r
Monthly interest rate, that is the annual rate divided by 12 and by 100
n
Tenure in months, that is years multiplied by 12

The formula assumes the rate stays fixed for the whole tenure, so on a floating rate loan it gives the EMI only until the next reset.

How to calculate it

  1. 1

    Take the net disbursed amount, not the property price

    P is what the lender actually pays out. Your own down payment, the processing fee and any insurance premium funded separately are outside the EMI calculation, though the fee is often added to the loan and does then attract interest.

  2. 2

    Convert the annual rate into a monthly rate

    Divide the annual percentage by 12 and then by 100. At 8.75% a year, r comes to 8.75 divided by 12 divided by 100, which is 0.0072917. Keep at least seven decimal places, because rounding here moves the EMI by tens of rupees.

  3. 3

    Convert the tenure into months

    A 20 year loan is n = 240. Use the months from the first full instalment, not from the sanction date. Pre-EMI interest charged during a construction-linked disbursal is separate and does not reduce the principal.

  4. 4

    Apply the formula

    Compute (1 + r)^n first, then multiply P by r and by that power, and divide by the power minus one. The result is the level instalment that repays interest and principal in full over n months.

  5. 5

    Split each instalment to read the amortisation

    Interest for a month is the opening balance multiplied by r. The rest of the EMI reduces the principal. Repeat with the new balance and you have the full amortisation schedule, which shows interest dominating the early years and principal the later ones.

  6. 6

    Test a prepayment before you commit to it

    Reduce the outstanding balance by the lump sum, then either keep the EMI and solve for a shorter n, or keep n and solve for a lower EMI. Keeping the EMI saves far more interest, because the saving comes from removing high-interest months at the end of the schedule.

EMI per ₹1,00,000 borrowed

EMI per ₹1,00,000 borrowed
TenureAt 7.5%At 8.5%At 9.5%
5 years₹2,004₹2,052₹2,100
10 years₹1,187₹1,240₹1,294
15 years₹927₹985₹1,044
20 years₹806₹868₹932
25 years₹739₹805₹874
30 years₹699₹769₹841

Worked example

Loan amount
₹50,00,000
Annual interest rate
8.75% fixed
Tenure
20 years, so 240 months
  • Monthly rate r = 8.75 ÷ 12 ÷ 100 = 0.0072917
  • (1 + r)^240 = 5.7181804
  • EMI = 50,00,000 × 0.0072917 × 5.7181804 ÷ (5.7181804 − 1)
  • Total repaid over 240 months = ₹1,06,04,529, so total interest = ₹56,04,529
  • First instalment splits as ₹36,458 interest and ₹7,727 principal; the 240th splits as roughly ₹320 interest and ₹43,866 principal

EMI = ₹44,186 a month, with ₹56,04,529 of interest over the full 20 years

Frequently asked questions

EMI equals P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the principal, r is the monthly rate and n is the tenure in months. The monthly rate is the annual rate divided by 12 and by 100. On ₹50,00,000 at 8.75% for 20 years the EMI works out to ₹44,186.
Interest each month is charged on the outstanding balance, which is at its highest at the start. On a ₹50,00,000 loan at 8.75% for 20 years, the first year takes ₹4,33,689 in interest against only ₹96,537 of principal. By the fifteenth year the same annual total is ₹2,03,056 interest against ₹3,27,171 principal, and in the final year almost all of it is principal.
Reducing the tenure saves considerably more interest. On the ₹50,00,000 loan above, a ₹5,00,000 prepayment at the end of year five cuts the remaining term from 180 months to 144 months and saves about ₹11,19,481 in interest if you keep paying ₹44,186. Using the same prepayment to lower the EMI to ₹39,188 while keeping 180 months saves only about ₹3,99,504.
A fixed rate stays the same for the agreed period, so the EMI is known in advance. A floating rate is tied to an external benchmark, usually the RBI repo rate, which stands at 5.25% as of September 2026, plus a spread; when the benchmark moves, lenders normally hold the EMI steady and change the tenure instead. Fixed rates are typically quoted higher than floating rates for the same borrower.
For a self-occupied house, no. Section 22 of the Income-tax Act, 2025, which replaces the old section 24(b), allows interest of up to ₹2,00,000 on a self-occupied property, but that deduction is not available if you are taxed under the default new regime in section 202. Interest on a let-out property remains deductible against the rental income without the ₹2,00,000 cap, subject to the set-off limits.
Principal repaid on a housing loan is one of the items listed in Schedule XV and is deductible under section 123 of the Income-tax Act, 2025, the successor to section 80C, within the combined ₹1,50,000 ceiling. Like the interest deduction on a self-occupied house, it is available only if you opt out of the new regime and are taxed under the old one.
It makes the monthly instalment smaller but the loan more expensive overall. Per ₹1,00,000 borrowed at 8.5%, a 15 year EMI is ₹985 and a 30 year EMI is ₹769, yet the 30 year borrower pays about ₹1,76,809 of interest against about ₹77,253 for the 15 year borrower. Pick the shortest tenure whose EMI you can service comfortably.

Sources

Rates and rules on this page come from the following. This is a working aid, not professional advice: confirm anything material with your Chartered Accountant before you act on it.

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