Calculate your loan EMI in seconds

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Work out your monthly EMI, total interest, and total payable amount for any loan — home, car, personal, or business. Free, instant, bank-accurate.

Bank Accurate Live Calculation Visual Breakdown

EMI Calculator

Declining-balance EMI — same as banks use

FY 2025–26

Loan amount (₹)

₹

Interest rate (% p.a.)

Tenure

yrs

Results update automatically as you type

LIVE CALCULATION

updated : just now

42%

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Monthly EMI₹12,668

Loan principal₹10,00,000

Total interest₹5,20,224

Total payable₹15,20,224

Tenure10 yr / 120 mo

EMI = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1)

P = ₹10,00,000 · r = 0.75%/mo · n = 120

How your EMI is calculated

Lenders use the standard reducing-balance EMI formula. Your EMI stays fixed, but each instalment splits differently between interest and principal over time.

01
Loan + rate + tenure
Enter the loan amount (principal), the agreed annual interest rate, and the repayment tenure.
```
P = 1000000
rate = 9% p.a.
years = 10
```
02
Convert to monthly
Monthly rate r = annual rate ÷ 12 ÷ 100. Total instalments n = years × 12.
```
r = 9 ÷ 12 ÷ 100
n = 10 × 12
```
03
Apply the EMI formula
The EMI is a fixed monthly amount. Total interest = (EMI × n) − principal.
```
EMI = P × r × (1+r)^n
      ÷ ((1+r)^n − 1)
```

FormulaEMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)P = principal, r = monthly rate (annual ÷ 12 ÷ 100), n = total months (years × 12).

EMI across different tenures

How the monthly EMI and total interest change for a ₹10,00,000 loan at 9% p.a. as you stretch the tenure.

Tenure	Monthly EMI	Total interest	Total payable

Why we use this formula by default.
Indian payroll convention, statutory references, and the SaaS tooling that runs payroll all converge on this approach. Below are the authoritative sources we cross-checked.

Statute

Code on Wages, 2019

Indian statutory wage framework underpinning payroll calculations.

Payroll SaaS

RazorpayX Payroll

Industry-standard calculation guidance used by Indian payrolls.

Tax Reference

ClearTax

India's leading consumer tax and salary computation reference.

Consultancy

hinote.in

India-specific HR and payroll practice for HR teams.

Payroll SaaS

Keka & Spryple

Industry-standard payroll and salary term definitions.

Originating Ref

Reference Calculator

External reference whose logic this implementation cross-checks.

FAQs about loan EMIs

What does EMI stand for?

EMI means Equated Monthly Instalment — the fixed amount you pay the lender every month until the loan is fully repaid. It covers both interest and a part of the principal.

How is EMI calculated?

EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1), where P is the principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the number of months. This is the standard reducing-balance method used by all banks.

Why is most of my early EMI going to interest?

In a reducing-balance loan, interest is charged on the outstanding balance — which is highest at the start. So early EMIs are interest-heavy and later EMIs are principal-heavy, even though the EMI amount stays the same.

Does a longer tenure reduce my EMI?

Yes — a longer tenure lowers the monthly EMI, but you pay significantly more total interest over the life of the loan. A shorter tenure means a higher EMI but much lower total interest.

How does prepayment help?

Prepaying reduces your outstanding principal, which cuts the interest charged on all future EMIs. Prepaying early in the loan saves the most because the balance (and therefore interest) is highest then.

Is the EMI fixed for the whole loan?

For fixed-rate loans, yes. For floating-rate loans, the EMI (or tenure) can change when the lender revises rates in line with the RBI repo rate or their benchmark.

What is the difference between flat and reducing rate?

A flat rate charges interest on the full original principal for the whole tenure, so the effective cost is far higher. A reducing-balance rate charges interest only on the outstanding balance — this calculator uses reducing balance.

Does this calculator include processing fees?

No. It calculates pure EMI, interest, and total payable on the principal. Processing fees, insurance, and GST are charged separately by the lender and are not part of the EMI.

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Calculate your loan EMI in seconds

How your EMI is calculated

Loan + rate + tenure

Convert to monthly

Apply the EMI formula

EMI across different tenures

Code on Wages, 2019

RazorpayX Payroll

ClearTax

hinote.in

Keka & Spryple

Reference Calculator

FAQs about loan EMIs

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