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EMI Calculator India 2026

Calculate your monthly EMI (Equated Monthly Instalment) for home loan, car loan, personal loan, or education loan. View total interest payable and year-by-year amortisation schedule.

Monthly EMI

₹0

Total Interest

₹0

Total Payment

₹0

Interest-to-Principal Ratio

0%

Yearly Amortisation Schedule

YearOpening BalancePrincipal PaidInterest PaidClosing Balance

What is an EMI Calculator?

An EMI (Equated Monthly Instalment) calculator is a financial tool that helps you compute the fixed monthly payment you need to make to repay a loan over a specified tenure. Whether you are planning a home loan, car loan, personal loan, or education loan, knowing your exact EMI helps you plan your monthly budget and assess affordability before committing to a loan.

The EMI amount depends on three key factors: the principal loan amount, the annual interest rate charged by the lender, and the loan repayment tenure in years or months. A higher loan amount or interest rate increases your EMI, while a longer tenure reduces it (but increases total interest paid).

EMI Calculation Formula

EMI = P x r x (1 + r)^n / [(1 + r)^n - 1]

Where:
P = Principal loan amount (e.g., Rs 20,00,000)
r = Monthly interest rate = Annual rate / 12 / 100 (e.g., 8.5%/12/100 = 0.007083)
n = Loan tenure in months = Years x 12 (e.g., 20 x 12 = 240 months)

EMI Calculation Example

Example: Rs 20 Lakh home loan at 8.5% for 20 years

P = 20,00,000 | r = 8.5/12/100 = 0.007083 | n = 240 months

EMI = 20,00,000 x 0.007083 x (1.007083)^240 / [(1.007083)^240 - 1]

Monthly EMI = Rs 17,356

Total payment over 20 years = Rs 41,65,440

Total interest payable = Rs 21,65,440 (108% of principal!)

Home Loan Interest Rates in India (2026)

Bank / LenderInterest Rate RangeProcessing FeeMax Tenure
SBI Home Loan8.50% - 9.65%0.35% of loan amount30 years
HDFC Bank8.75% - 9.65%Up to Rs 3,000 + taxes30 years
ICICI Bank8.75% - 9.80%0.50% + taxes30 years
Bank of Baroda8.40% - 9.65%Nil to Rs 10,00030 years
LIC Housing Finance8.50% - 9.50%Rs 10,000 - Rs 25,00030 years
PNB Housing8.50% - 9.75%0.35% + taxes25 years

How to Reduce Your Home Loan EMI

Tax Benefits on Home Loan (FY 2025-26)

Understanding Amortisation Schedule

An amortisation schedule shows the year-by-year (or month-by-month) breakdown of how your EMI is split between principal repayment and interest payment. A critical insight that every borrower should understand:

In the early years of a home loan, 70-80% of your EMI goes towards paying interest, not principal. This means your outstanding balance reduces very slowly in the first few years. Only towards the second half of the tenure does principal repayment accelerate. This is precisely why early prepayments have such an outsized impact on reducing total interest — they directly reduce the principal on which future interest is calculated.

Home Loan Prepayment vs SIP Investment — Which is Better?

This is one of the most debated questions in Indian personal finance. The answer depends on your loan interest rate:

Frequently Asked Questions — EMI Calculator

How is EMI calculated for a home loan?+
Home loan EMI is calculated using the formula: EMI = P x r x (1+r)^n / [(1+r)^n - 1], where P is the loan principal, r is the monthly interest rate (annual rate / 12 / 100), and n is the tenure in months. For example, a Rs 50 lakh loan at 8.5% for 20 years gives an EMI of approximately Rs 43,391 per month.
What is the ideal EMI-to-income ratio?+
Financial experts recommend keeping your total EMI burden (all loans combined) below 40-50% of your net monthly income. Most banks approve home loans where the EMI does not exceed 50-55% of take-home salary. Ideally, keep home loan EMI below 35% of income to maintain comfortable cash flow for other expenses, savings, and investments.
Is there a prepayment penalty on home loans in India?+
No. As per RBI guidelines, there is zero prepayment penalty on floating rate home loans from all banks and HFCs in India. You can prepay any amount at any time without charges. However, fixed-rate home loans may have a prepayment penalty of 1-2% of the prepaid amount — check your loan agreement.
Should I choose a 20-year or 30-year home loan tenure?+
A shorter tenure (20 years) means higher EMI but significantly less total interest paid. A 30-year tenure reduces EMI by about 15-20% but increases total interest by 60-80%. Choose the shortest tenure where EMI remains comfortably affordable (under 40% of income). You can always prepay to reduce effective tenure without being locked into high EMI.
How does CIBIL score affect home loan interest rate?+
Your CIBIL (credit) score significantly affects the interest rate offered. Score above 750 typically gets you the best rates (lowest slab). Scores between 650-750 may get slightly higher rates. Below 650, many banks may reject the application or charge premium rates. A difference of even 0.25% in rate on a Rs 50 lakh loan over 20 years means Rs 3+ lakhs more in total interest.
What is the difference between flat rate and reducing balance EMI?+
In flat rate method, interest is calculated on the original loan amount throughout the tenure — making the effective interest much higher. In reducing balance method (used by all banks for home/car loans), interest is calculated only on the outstanding principal, which reduces every month as you pay EMI. Always compare loans on reducing balance basis. A 7% flat rate is approximately equivalent to 12-13% reducing balance rate.

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