EMI Calculator — Calculate Your Monthly Loan EMI Instantly
Free EMI calculator for home loan, car loan, and personal loan. Get your monthly EMI, total interest, and year-by-year amortization schedule — no signup needed.
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Monthly EMI
₹26,035
20 yrs · ₹30.00 L loan
💡 Pay ₹2.6K extra/month → save ₹7.51 L interest & close 4 yrs early
Monthly EMI
₹26,035
20 yrs
Total Interest
₹32.48 L
Total Payment
₹62.48 L
What is EMI and How is it Calculated?
An EMI (Equated Monthly Instalment) is the fixed monthly payment you make to repay a loan over a set period. Every EMI has two components: a principal repayment (reducing your outstanding loan balance) and an interest charge (cost of borrowing). The ratio between these two changes every month — in early months, you pay more interest and less principal; by the end of the loan, the reverse is true.
The EMI Formula
P = Principal | r = Monthly rate (annual rate ÷ 12 ÷ 100) | n = Tenure in months
For example, for a ₹30 lakh home loan at 8.5% annual interest over 20 years (240 months): monthly rate r = 8.5/12/100 = 0.007083, giving an EMI of approximately ₹26,035 per month.
Factors That Affect Your EMI
- Principal Amount: Higher loan amount = higher EMI. Borrow only what you need, and make a bigger down payment where possible.
- Interest Rate: Even a 0.5% difference in rate significantly impacts EMI over 20 years. Compare rates from multiple banks before applying.
- Loan Tenure: Longer tenure reduces monthly EMI but increases total interest paid. Shorter tenure increases EMI but saves money overall.
- Credit Score: A CIBIL score above 750 typically qualifies you for the lowest available rates. Poor credit score leads to higher interest rates.
Tips to Reduce Your EMI
- Increase your down payment — reduces the principal and hence EMI
- Opt for a longer tenure (with caution — total interest goes up)
- Negotiate a lower interest rate — even 0.25% matters over 20 years
- Make prepayments annually — reduces outstanding principal, lowering future interest
- Transfer the loan to a bank offering lower rates (balance transfer)
Home Loan vs Car Loan vs Personal Loan EMI
Home loans have the lowest interest rates (8.5–10.5% p.a.) and longest tenures (up to 30 years), resulting in lower EMIs for larger amounts. Car loans are mid-range (9–12% p.a., up to 7 years). Personal loans carry the highest rates (12–24% p.a.) and shortest tenures (up to 5 years) — making them significantly more expensive per rupee borrowed.
As a rule of thumb, keep your total monthly EMI obligations (home + car + personal loans) below 50% of your monthly in-hand salary to maintain financial health and ensure you can still save and invest.
EMI Calculator by Bank
Rates as of June 2025Pre-filled calculators with each bank's current interest rate. Pick your bank and loan type.
Public Sector Banks
State Bank of India
Punjab National Bank
Bank of Baroda
Canara Bank
Union Bank of India
Bank of India
Indian Bank
Central Bank of India
Indian Overseas Bank
UCO Bank
Bank of Maharashtra
Private Banks
HDFC Bank
ICICI Bank
Axis Bank
Kotak Mahindra Bank
IndusInd Bank
Yes Bank
IDFC First Bank
Federal Bank
RBL Bank
Bandhan Bank
South Indian Bank
Karur Vysya Bank
Housing Finance & NBFCs
LIC Housing Finance
PNB Housing Finance
Bajaj Housing Finance
Tata Capital
Aditya Birla Finance
L&T Finance
Bajaj Finance
Frequently Asked Questions
What is EMI?
EMI stands for Equated Monthly Instalment. It is a fixed amount you pay to your bank or lender every month to repay your loan. Each EMI consists of two parts — a portion that goes towards repaying the principal (original loan amount) and a portion that covers the interest. In early months, a larger share goes to interest; over time, more goes to principal.
How is EMI calculated?
EMI is calculated using the formula: EMI = P × r × (1+r)^n / ((1+r)^n - 1), where P is the principal loan amount, r is the monthly interest rate (annual rate divided by 12 and then by 100), and n is the loan tenure in months. Our calculator applies this formula instantly as you adjust the inputs.
What is a good EMI to salary ratio?
Financial advisors recommend keeping your total EMI obligations (all loans combined) below 40–50% of your monthly take-home salary. For a home loan specifically, a maximum of 30–35% of your monthly income is considered comfortable. Higher EMI-to-income ratios increase financial stress and reduce your ability to save or handle emergencies.
Can I prepay my loan to reduce EMI?
Yes. Most banks allow part-prepayment of loans. When you make a prepayment, you can either reduce your EMI while keeping the tenure the same, or keep the same EMI and reduce the tenure. Reducing the tenure saves more on total interest. For home loans, banks typically charge no prepayment penalty on floating-rate loans as per RBI guidelines. Fixed-rate loans may have a 1–2% prepayment fee.
Which bank has the lowest home loan interest rate in India?
As of 2025, SBI offers home loans starting from 8.50% p.a., HDFC from 8.75% p.a., ICICI from 8.75% p.a., and Kotak Mahindra Bank from 8.70% p.a. Rates vary based on your credit score, loan amount, and employment type. Use the BankBazaar comparison tool to see the latest rates from all major banks.
How does loan tenure affect EMI?
Longer tenure means lower monthly EMI but higher total interest paid. Shorter tenure means higher EMI but much less total interest. For example, a ₹30 lakh home loan at 8.5% has an EMI of ₹26,285 over 20 years (₹33.1L total interest) vs ₹37,308 over 10 years (only ₹14.8L total interest). Choosing a longer tenure makes sense if monthly cash flow is tight; choose shorter tenure if you want to minimize total cost.