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EMI Calculator
Calculate your EMI (Equated Monthly Instalment) for home loans, car loans, or personal loans — and see your total interest outgo before you sign. EMI uses the reducing-balance method, meaning interest is charged on the outstanding principal and decreases as you repay.
Indian home loan rates currently range from 8.4%–9.5% p.a. On a ₹50L home loan over 20 years, a 1% rate difference changes your total interest by over ₹7 lakhs. Compare presets for home, car, and personal loans to find what fits your budget.
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EMI Formula — How is EMI Calculated?
EMI (Equated Monthly Instalment) is calculated using the reducing balance method:
Where P = principal loan amount, r = monthly interest rate (annual rate ÷ 12 ÷ 100), n = tenure in months.
Typical EMI Rates in India
Home loan rates currently range from 8.4% – 9.5% p.a. Car loans: 7.5% – 12%. Personal loans: 10.5% – 24%. The interest rate directly affects your EMI and the total interest paid — a 1% difference on a ₹50L home loan (20 years) changes total interest by over ₹7 lakhs.
How to Reduce Your EMI
- Higher down payment: Reduces the principal, cutting both EMI and total interest.
- Longer tenure: Spreads payments, reducing EMI — but increases total interest paid.
- Balance transfer: Shifting to a lower-rate lender mid-loan can save significantly.
- Prepayment: Even ₹10,000 extra per year can reduce a 20-year home loan by 2–3 years.
Frequently Asked Questions
What is the EMI for a ₹20 lakh personal loan at 12% for 5 years?▼
Using the EMI formula: P=20L, r=12%/12=1% monthly, n=60 months. EMI = ₹44,489. Total payment = ₹26.69L. Total interest = ₹6.69L (33.5% extra on principal).
Does EMI change if I make a prepayment?▼
Typically your lender either reduces the tenure (keeping EMI same) or reduces the EMI (keeping tenure same). Reducing tenure saves more total interest. Check your loan agreement for prepayment charges — most home loans allow free prepayment after year 1.
What is the difference between flat rate and reducing balance EMI?▼
Reducing balance (used by most Indian banks): interest is calculated on the outstanding principal each month, so it decreases as you repay. Flat rate: interest is fixed on the original principal throughout. A 10% flat rate is equivalent to roughly 18–19% reducing balance — always compare reducing rates.
Can I get an EMI holiday?▼
Yes, many banks offer moratorium (EMI holiday) of 3–6 months on request, often seen during COVID-19. However, interest continues to accrue during the holiday and is added to the outstanding principal, increasing future EMIs or tenure.
What is the CIBIL score required for a home loan?▼
Most banks require a minimum CIBIL score of 700+ for home loan approval. Scores above 750 typically get the best interest rates. Below 650, getting a secured home loan is difficult and the rate will be significantly higher.