Loan Calculator
EMI Calculator
Calculate monthly instalments for any loan type instantly.
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EMI Formula — How is EMI Calculated?
EMI (Equated Monthly Instalment) is calculated using the reducing balance method:
EMI = P × r × (1 + r)ⁿ / [(1 + r)ⁿ − 1]
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.