EMI Calculator
Calculate your estimated monthly loan EMI, total interest and total repayment for a personal, car or other reducing-balance loan.
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Illustrative estimate based on the values entered.
Results are estimates for general planning only. Actual charges, lender terms, tax rules and returns may differ. This calculator does not provide financial, investment, tax or lending advice.
EMI Calculator: Estimate Your Monthly Loan Payment
An equated monthly instalment (EMI) is the fixed monthly payment made to a lender to service an outstanding loan. Each EMI payment is divided between the repayment of principal borrowed and the interest charged by the bank or NBFC. Use our free EMI calculator to model your monthly commitments for personal loans, auto loans, and home loans before applying.
The Reducing Balance EMI Formula
Standard retail loans in India use the reducing-balance monthly amortization formula:
EMI = P × r × (1 + r)^n / [(1 + r)^n - 1]
- P: Principal loan amount borrowed.
- r: Periodic monthly interest rate (Annual interest rate divided by 12, then divided by 100).
- n: Total loan repayment tenure in months (Years × 12).
During the initial stages of repayment, interest constitutes the major portion of each installment. As the outstanding loan balance decreases, interest reduces proportionally, allowing a larger portion of the EMI to repay principal.
Benchmark Loan EMI Scenarios (Fixed 9.00% Annual Interest)
| Loan Principal | Tenure | Monthly EMI | Total Interest | Total Outflow |
|---|---|---|---|---|
| ₹1,00,000 | 3 Years (36 mo.) | ₹3,180 | ₹14,479 | ₹1,14,479 |
| ₹5,00,000 | 5 Years (60 mo.) | ₹10,379 | ₹1,22,755 | ₹6,22,755 |
| ₹10,00,000 | 5 Years (60 mo.) | ₹20,758 | ₹2,45,501 | ₹12,45,501 |
| ₹25,00,000 | 15 Years (180 mo.) | ₹25,357 | ₹20,64,204 | ₹45,64,204 |
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Frequently Asked Questions
How does tenure affect the total cost of an EMI?
A longer tenure lowers your monthly EMI amount, but significantly increases the cumulative interest paid to the lender. Selecting the shortest tenure with an affordable EMI minimizes lifetime borrowing costs.
Can floating interest rates alter my EMI amount?
Yes. If your loan is linked to an external benchmark (such as the RBI Repo Rate), changes in the benchmark rate will generally adjust either your loan tenure or your monthly installment.
Does this EMI estimate include processing fees or loan insurance?
No. This calculator reflects pure reducing-balance principal and interest. Lenders may charge one-time processing fees, document charges, GST, and mandatory credit insurance separately.
Statutory Notice: This calculator provides mathematical projections for illustrative planning only. It does not constitute a formal loan offer, sanction letter, or financial advice. Confirm terms with your banking partner.
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