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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.
How EMI is Calculated
EMI (Equated Monthly Instalment) is calculated on a reducing-balance basis, meaning interest is charged on the outstanding principal each month — not the original loan amount. The formula is:
Where P = principal (loan amount), r = monthly interest rate (annual rate ÷ 12 ÷ 100), n = total number of monthly instalments.
The EMI stays constant throughout the loan, but its composition changes: in early months, most of each EMI is interest; in later months, most is principal repayment. This is called amortisation.
EMI Reference: ₹10 Lakh Loan
| Interest rate | 3 years | 5 years | 10 years | 20 years |
|---|---|---|---|---|
| 7% | ₹30,877 | ₹19,801 | ₹11,611 | ₹7,753 |
| 8.5% | ₹31,567 | ₹20,517 | ₹12,400 | ₹8,678 |
| 10% | ₹32,267 | ₹21,247 | ₹13,215 | ₹9,650 |
| 12% | ₹33,214 | ₹22,244 | ₹14,347 | ₹11,011 |
| 14% | ₹34,178 | ₹23,268 | ₹15,527 | ₹12,435 |
EMI shown per ₹10 lakh. For ₹30L loan at 8.5% for 20 years, multiply the ₹8,678 figure by 3 = ₹26,034/month.
Typical Interest Rates in India (2024)
| Loan type | Typical rate (2024) | Typical tenure |
|---|---|---|
| Home loan (floating) | 8.50%–9.25% | 10–30 years |
| Home loan (fixed, 5Y) | 9.00%–10.00% | 5 years then floating |
| Car loan (new) | 8.50%–10.00% | 3–7 years |
| Car loan (used) | 11%–16% | 1–5 years |
| Personal loan (salaried) | 10.5%–18% | 1–5 years |
| Education loan (domestic) | 8.5%–11% | Up to 15 years |
| Gold loan | 7%–12% | 3–24 months |
Home loan and car loan rates are floating — they change when the RBI adjusts the repo rate. The rates above reflect the market as of mid-2024. Always get quotes from at least 3 lenders before taking a loan; even a 0.25% difference saves ₹1–3 lakh on a long-term loan.
Planning a home loan? Read our complete home loan guide.
Covers EMI tables, amortisation, prepayment strategy, and eligibility at major Indian banks.
Interest rates sourced from RBI and published bank rate sheets (Q2 2024). Last reviewed: October 2025.