EMI Calculator

Work out the monthly EMI, total interest, and total payment on a loan.

Inputs

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Formula

EMI = P × r × (1 + r)^n / ((1 + r)^n − 1)

EMI=P×r×(1+r)n(1+r)n1EMI = \dfrac{P \times r \times (1+r)^n}{(1+r)^n - 1}

P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the number of monthly instalments.

Worked example

A ₹25,00,000 home loan at 8.5% annual interest over 20 years (240 months) works out to an EMI of roughly ₹21,700 a month, with total interest close to ₹27 lakh over the life of the loan — more than the principal itself, which surprises most first-time borrowers.

Where this can give the wrong answer

  • A 0% interest rate is valid input and falls back to a straight-line EMI (principal ÷ tenure) rather than dividing by zero.
  • Prepayments and rate resets aren't modelled — this gives the EMI for a fixed-rate loan with no part-payments, which is the figure a bank quotes at disbursal, not what you'll actually pay if you prepay.
  • Floating-rate loans change the EMI or tenure whenever the bank's benchmark rate moves; re-run this with the new rate to see the effect.

FAQ

Over long tenures (20+ years) at typical Indian home loan rates, interest compounds on a slowly-shrinking principal for a very long time. Shortening the tenure by even a few years, or making annual part-payments, cuts total interest far more than a small rate difference does.