Free tool · Finance
EMI Calculator
EMI calculator for home, car, business and personal loans in India.
Monthly EMI
₹ 12,668
Principal
₹ 10,00,000
Interest payable
₹ 5,20,109
Total payable
₹ 15,20,109
Principal vs interest share over the full tenure.
Frequently asked questions
What is EMI?+
EMI (Equated Monthly Installment) is the fixed monthly amount you pay to repay a loan. It includes both principal and interest, calculated so the loan finishes exactly at the end of tenure.
How is EMI calculated?+
EMI = P × r × (1+r)^n / ((1+r)^n - 1), where P is principal, r is monthly interest rate, and n is number of monthly installments.
Does prepayment reduce EMI?+
Prepayment usually reduces either your tenure or your EMI, depending on what your lender allows. It always reduces total interest.
Is this calculator for home, car or business loans?+
Works for all reducing-balance loans — home, car, personal, business, education. Just plug in the numbers.
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Who should use EMI Calculator
- Business owners sizing a working-capital or equipment loan
- Anyone comparing two offers with different rates and tenures
- Buyers deciding between a shorter, heavier EMI and a longer, cheaper one
How to use it, step by step
- Enter the principal you intend to borrow.
- Enter the annual interest rate as quoted by the lender.
- Enter the tenure in months.
- Compare EMI and total interest across the tenures you are considering.
The reducing-balance EMI formula
Most Indian loans use a reducing-balance method: interest accrues on the outstanding principal, so early instalments are mostly interest and later ones mostly principal. Flat-rate quotes are not comparable and always cost more than the same headline rate on reducing balance.
r = Annual rate / 12 / 100 EMI = P x r x (1 + r)^n / ((1 + r)^n - 1) Total interest = EMI x n - P
Worked example: Rs 10,00,000 at 12% for 36 vs 60 months
- 36 months: EMI Rs 33,214, total interest about Rs 1,95,700
- 60 months: EMI Rs 22,244, total interest about Rs 3,34,700
- Monthly saving of Rs 10,970 costs an extra Rs 1,39,000 in interest
Choose the shortest tenure your cash flow can genuinely sustain, and keep a buffer: a missed EMI costs far more than the interest saved by stretching yourself.
Common mistakes to avoid
- Comparing a flat rate against a reducing-balance rate as if they were equivalent.
- Ignoring processing fees, insurance and prepayment charges, which change the effective cost.
- Sizing the EMI against the best month's revenue rather than the worst.
- Assuming a floating rate stays where it is for the whole tenure.
How to read the result
Compare offers on total cost including fees, not on EMI alone. Then check the prepayment terms — the ability to close early without penalty is worth a slightly higher rate for a seasonal business.
Frequently asked questions
Does this include processing fees?
No. Add the lender's fees separately to compare the true cost of two offers.
What happens if I prepay?
Prepayment reduces outstanding principal and therefore total interest, subject to your lender's charges. Ask for a fresh amortisation schedule after any prepayment.
Disclaimer: Estimates only, based on the figures you enter. Actual instalments depend on your lender's terms, fees and rate resets. This is not financial advice.