Loans & EMI

    EMI Calculator

    Calculate the monthly EMI, total interest and complete amortization schedule for any loan — home, personal, business or auto.

    Inputs
    %
    years
    Result
    Monthly Loan EMI
    ₹10,624
    • Principal₹5,00,000
    • Total Interest₹1,37,411
    • Total Payment₹6,37,411
    • Tenure60 months
    • Interest Rate10%

    You will pay ₹10,624 every month for 60 months. Total interest cost: ₹1,37,411 (27.48% of principal).

    Principal vs Interest
    Step-by-step calculation
    1. Monthly rate r = 10 / 12 / 100 = 0.008333
    2. Number of months N = 5 × 12 = 60
    3. EMI = P·r·(1+r)^N / ((1+r)^N − 1) = ₹10,624
    4. Total payment = EMI × N = ₹6,37,411
    5. Total interest = Total − Principal = ₹1,37,411
    Detailed Breakdown
    YearPrincipal PaidInterest PaidBalance
    1₹81,134₹46,348₹4,18,866
    2₹89,630₹37,852₹3,29,236
    3₹99,015₹28,467₹2,30,221
    4₹1,09,383₹18,099₹1,20,837
    5₹1,20,837₹6,645₹0
    How this is calculated
    EMI = P × r × (1 + r)ᴺ / ((1 + r)ᴺ − 1)
    • P = principal, r = monthly interest rate, N = total months.
    • Uses the reducing-balance method used by all Indian banks and NBFCs.
    • Total interest = EMI × N − P.
    Written by Taxpex CA Team
    Chartered Accountants (ICAI) · Reviewed by Taxpex Editorial Board
    Last updated 10 Nov 2025
    When to use this

    Is this the right calculator for you?

    • Comparing loan offers from 2–3 banks at different rates and tenures.
    • Deciding between a shorter tenure (higher EMI, less interest) vs longer tenure (lower EMI, more interest).
    • Modelling the effect of a lumpsum prepayment on interest saved and tenure reduction.
    • Building an amortization schedule for tax purposes (Section 24 interest / 80C principal on home loans).
    Overview

    Understanding the EMI

    Every rupee you borrow in India — home loan, personal loan, car loan, business loan or education loan — is repaid using the reducing-balance EMI method mandated by the RBI. The EMI is a fixed monthly instalment where the interest component is highest at the start and the principal share grows as the outstanding falls. This calculator returns the EMI, total interest outgo, total payment and a full year-wise amortization schedule for any principal, rate and tenure.

    The formula EMI = P × r × (1+r)^N / ((1+r)^N − 1) is used by every bank and NBFC (SBI, HDFC, ICICI, Axis, Bajaj Finserv, etc.). Small rate changes matter enormously on long tenures — a 25 bps drop on a ₹50 lakh, 20-year home loan saves ~₹1.6 lakh in interest. Use the schedule to plan prepayments: even one extra EMI a year cuts a 20-year loan by ~4 years.

    This EMI engine works for any Indian loan product. For product-specific views (interest-band, LTV, subsidy) use the Home Loan, Personal Loan, Car Loan, Education Loan or Gold Loan calculators — all use the same reducing-balance engine with sensible defaults.

    Worked examples

    Real-world scenarios, step-by-step

    ₹50 L home loan @ 8.75% for 20 years

    Buying a ₹65 L flat with 20% own contribution and a ₹50 L loan from a scheduled bank.

    • P = 50,00,000 | r = 8.75%/12 | N = 240
    • EMI = 50L × 0.007292 × 1.007292^240 / (1.007292^240 − 1)
    • EMI ≈ ₹44,186 | Total ≈ ₹1.06 Cr | Interest ≈ ₹56 L
    EMI ≈ ₹44,186 for 240 months.
    ₹5 L personal loan @ 14% for 3 years

    Consolidating credit-card debt using an unsecured personal loan.

    • P = 5,00,000 | r = 14%/12 | N = 36
    • EMI ≈ ₹17,089 | Total ≈ ₹6.15 L | Interest ≈ ₹1.15 L
    EMI ≈ ₹17,089 for 36 months.
    Rates & reference

    EMI per ₹1 lakh across rate & tenure (reducing balance)

    Rate5 yr10 yr15 yr20 yr25 yr
    8.50%₹2,053₹1,240₹985₹868₹805
    9.00%₹2,076₹1,267₹1,014₹900₹839
    9.50%₹2,100₹1,294₹1,044₹932₹874
    10.50%₹2,149₹1,349₹1,105₹998₹944
    12.00%₹2,224₹1,435₹1,200₹1,101₹1,053
    14.00%₹2,327₹1,553₹1,332₹1,244₹1,204
    Pro tips

    Common mistakes to avoid

    Comparing flat-rate ads with reducing-balance rates — flat 8% ≈ reducing 14%.

    Ignoring processing fees, prepayment charges and insurance loading in APR.

    Choosing max tenure to get lowest EMI — interest paid can exceed principal.

    Missing an EMI — 30+ days late kills CIBIL score by 40–70 points.

    Need a CA to review your numbers? Book a free consult — we'll double-check within 24 hours.

    CA insights

    Expert tips from senior CAs

    • Prepay in year 1–5 when interest-heavy EMIs dominate — max impact per rupee.

    • Switch to a Repo-linked lending rate (RLLR) home loan for faster rate transmission.

    • Keep EMI ≤ 40% of net monthly income; 50% max including all credit obligations.

    • Get an amortization schedule at closing — needed for Section 24 & 80C claims.

    Frequently asked questions

    How is this loan EMI calculated?+

    EMI is computed using the standard reducing-balance formula: EMI = P × r × (1+r)^N / ((1+r)^N − 1), where P is the principal, r the monthly interest rate and N the tenure in months.

    Does this include processing fees or GST?+

    No. Processing fees, insurance, GST on fees and stamp duty are excluded and vary per lender. Add them separately to arrive at the true cost of the loan.

    Can prepayment reduce my interest?+

    Yes. Any principal prepayment reduces the outstanding balance and therefore future interest. Prepaying earlier in the tenure saves the most interest.

    Keep exploring

    People also ask

    How is this loan EMI calculated?+

    EMI is computed using the standard reducing-balance formula: EMI = P × r × (1+r)^N / ((1+r)^N − 1), where P is the principal, r the monthly interest rate and N the tenure in months.

    via EMI Calculator
    How is a personal loan EMI calculated?+

    EMI is computed using the standard reducing-balance formula: EMI = P × r × (1+r)^N / ((1+r)^N − 1), where P is the principal, r the monthly interest rate and N the tenure in months.

    via Personal Loan Calculator
    How is a home loan EMI calculated?+

    EMI is computed using the standard reducing-balance formula: EMI = P × r × (1+r)^N / ((1+r)^N − 1), where P is the principal, r the monthly interest rate and N the tenure in months.

    via Home Loan Calculator
    How is a car loan EMI calculated?+

    EMI is computed using the standard reducing-balance formula: EMI = P × r × (1+r)^N / ((1+r)^N − 1), where P is the principal, r the monthly interest rate and N the tenure in months.

    via Car Loan Calculator
    How is an education loan EMI calculated?+

    EMI is computed using the standard reducing-balance formula: EMI = P × r × (1+r)^N / ((1+r)^N − 1), where P is the principal, r the monthly interest rate and N the tenure in months.

    via Education Loan Calculator

    Cite this page

    This dataset is free to reference in articles, research and reports. Attribution to Taxpex Consultancy is all we ask. Data last verified 31 July 2026.

    Citation (APA)
    Taxpex Consultancy. (2026). EMI Calculator — Taxpex. Retrieved from https://taxpex.com/tools/loans-emi/emi-calculator
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