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EMI Calculator

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Calculate your Equated Monthly Instalment, total interest payable, and view year-by-year loan amortization.

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Results

Monthly EMI
₹8,678
/month
Principal Loan
₹10 Lakh(₹10,00,000)
Total Interest
₹10.83 Lakh(₹10,82,776)
Total Repayment
₹20.83 Lakh(₹20,82,776)

Over 20 years, interest (₹10.83 Lakh) exceeds 108% of your original borrowed principal.

Prepaying just 1 extra EMI per year can shorten your tenure by over 3.5 years!

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Estimates based on reducing balance method. Processing fees and taxes not included.

Quick Answer / Summary

A loan of ₹10.00 Lakh at an interest rate of 8.50% p.a. over a 20-year tenure requires a monthly EMI of ₹8,678. The total interest payable is ₹10.83 Lakh, resulting in a total repayment amount of ₹20.83 Lakh.

How the EMI calculation works

An Equated Monthly Instalment (EMI) represents a fixed monthly payment covering both accrued interest and a portion of the original borrowed principal. Loans in India follow the reducing balance method, where interest is charged only on the outstanding balance at the end of each month.

EMI = P × r × (1 + r)ⁿ / ((1 + r)ⁿ − 1)
P = Principal borrowed loan amount
r = Monthly interest rate = Annual Rate / 12 / 100
n = Total tenure in months = Years × 12
EMI = Equated Monthly Instalment amount

Step-by-step worked example

Here is how a ₹10,00,000 home loan at 8.5% p.a. for 20 years is mathematically computed:

Step 1:Monthly rate: r = 8.5 / 1200 ≈ 0.00708333
Step 2:Tenure in months: n = 20 × 12 = 240 months
Step 3:Compound factor: (1 + r)²⁴⁰ = (1.00708333)²⁴⁰ ≈ 5.42095
Step 4:Numerator / Denominator: (10,00,000 × 0.00708333 × 5.42095) / (5.42095 − 1) ≈ ₹8,678
Monthly EMI: ₹8,678Total Interest: ₹10,82,776

How to plan your loan borrowing

1

Input Loan Principal

Enter the sanctioned or required loan amount after deducting your personal down payment.

2

Check Bank Interest

Use current repo-linked benchmark rates (e.g. 8.4%–9.0% for home loans, 9%–11% for car loans).

3

Optimize Loan Tenure

Shorter tenures increase EMI but dramatically decrease total cumulative interest.

4

Simulate Prepayments

Check our prepayment calculator to see how annual partial payments slash your tenure.

Year-by-year amortization schedule

Observe how the interest portion dominates the initial years, while principal repayment speeds up in later years:

View Full Amortization Breakdown (Years 1 to 20)↓
YearPrincipal PaidInterest PaidRemaining Balance
Year 1₹19,902₹84,236₹9,80,098
Year 2₹21,661₹82,477₹9,58,436
Year 3₹23,576₹80,563₹9,34,860
Year 4₹25,660₹78,479₹9,09,200
Year 5₹27,928₹76,211₹8,81,272
Year 6₹30,397₹73,742₹8,50,875
Year 7₹33,084₹71,055₹8,17,791
Year 8₹36,008₹68,131₹7,81,784
Year 9₹39,191₹64,948₹7,42,593
Year 10₹42,655₹61,484₹6,99,938
Year 11₹46,425₹57,714₹6,53,513
Year 12₹50,529₹53,610₹6,02,985
Year 13₹54,995₹49,144₹5,47,990
Year 14₹59,856₹44,283₹4,88,134
Year 15₹65,147₹38,992₹4,22,987
Year 16₹70,905₹33,234₹3,52,082
Year 17₹77,172₹26,966₹2,74,910
Year 18₹83,994₹20,145₹1,90,916
Year 19₹91,418₹12,721₹99,498
Year 20₹99,498₹4,640₹0

Frequently asked questions

What is EMI and how is it calculated in India?
An Equated Monthly Instalment (EMI) is a fixed payment amount made by a borrower to a lender at a specified date each month. It is computed using the formula: EMI = P × r × (1 + r)^n / ((1 + r)^n − 1), where P is principal, r is the monthly interest rate, and n is total months.
Does a longer tenure reduce my total loan cost?
No. A longer tenure reduces your monthly EMI amount, but significantly increases the cumulative interest paid. For example, a ₹10 Lakh loan at 8.5% p.a. over 20 years incurs ₹10.83 Lakh in interest, whereas a 10-year tenure incurs only ₹4.88 Lakh in total interest.
How can loan prepayments reduce my interest burden?
Every partial prepayment directly reduces your outstanding loan principal balance. Since daily interest is calculated on outstanding principal, prepayments either shorten your remaining tenure or lower your monthly EMI.
What is the difference between fixed and floating rate loans?
A fixed-rate loan maintains an unchanging interest rate throughout the loan period. A floating-rate loan is benchmarked to the RBI Repo Rate (RLLR or MCLR) and fluctuates as central bank monetary policy changes.
Are there prepayment penalties on home loans in India?
Per RBI guidelines, banks and Housing Finance Companies (HFCs) cannot charge prepayment or foreclosure penalties on floating-rate home loans availed by individual borrowers.
What should my ideal Debt-to-Income (DTI) ratio be?
Financial planners recommend keeping total monthly EMI commitments under 40% to 50% of your net monthly take-home salary to ensure adequate room for living expenses, emergency reserves, and long-term investments.

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Last updated: September 2026·Verified against standard banking amortization schedules
View formula methodology

Monthly EMI

₹8,678