EMI Calculator (EMI Planner)

Your lender works out a fixed monthly payment so that, after the last instalment, the loan is fully repaid with interest charged each month on the balance still owed. You need three inputs: the loan amount, the interest rate and the tenure. The calculator turns the yearly rate into a monthly rate (yearly rate divided by 12) and applies the EMI formula below. For example, ₹50,00,000 at 8.5 % for 20 years gives an EMI of ₹43,391.

EMI = P × r × (1 + r)^n / ((1 + r)^n − 1), where P is the loan amount, r is the monthly interest rate (yearly rate ÷ 12 ÷ 100) and n is the number of monthly instalments. With P = 50,00,000, r = 0.085 / 12 and n = 240, the result is about ₹43,391 a month. At a 0 % rate the formula is simply P ÷ n.

On a reducing-balance loan, interest is charged each month only on the principal still outstanding, so it falls as you repay. This calculator uses that method, which is how banks usually price home, car and personal loans. A flat rate charges interest on the original amount for the whole tenure, so the same quoted number costs far more: at 8.5 % flat on ₹50,00,000 for 20 years the EMI would be ₹56,250 compared with ₹43,391 on a reducing balance. Ask your lender which method the quoted rate uses.

At 8.5 % a year for 20 years, the EMI on ₹50,00,000 is about ₹43,391 and the total interest is about ₹54.1 lakh. Rates change, so enter the rate in your own sanction letter. Use the Home Loan EMI Calculator for a page set up with these numbers.

Both lower the total interest, but they work differently: a part payment can reduce the EMI or the tenure, depending on what you ask the lender for. To compare the two on your own loan, use the Prepayment Optimizer, and to find the EMI needed to close a loan by a date, use the Target Tenure EMI calculator.

Foreclosure means paying off the whole remaining loan early. RBI rules bar foreclosure or pre-payment charges on floating-rate loans to individuals for non-business purposes, while fixed-rate loans and business loans may carry a charge set in the loan agreement. Turn on “Foreclose the loan early” in More options to see the left-over principal, the charge and the interest you save. Rules change, so check the current RBI directions, your loan agreement and your sanction letter.

Interest and principal in an EMI carry no GST. A processing fee is a taxable service, generally at 18 % GST, which is added to the fee and not to the loan. Enter the fee as an amount or as a percentage of the loan and the GST from your fee receipt, and the calculator shows the amount actually disbursed and the effective rate including fees. Check current rules and your sanction letter.

Banks usually quote a yearly rate, so leave the option on Per year. If your lender quotes a monthly rate such as 0.75 % a month, switch to Per month and type it as quoted; the calculator uses it directly and shows the yearly equivalent (monthly rate × 12, so 0.75 % a month is 9 % a year). Switching the option converts the number you typed, so the loan stays the same.

Interest is charged on the outstanding balance, which is highest at the start. As each EMI chips away at the principal, the interest portion shrinks and the principal portion grows. Check “Interest in your first EMI” and the chart to see the shift.

It should be very close. Small differences come from how a lender counts days, when the first EMI falls relative to disbursement (broken-period interest), rounding, and any fees added to the loan.