EMI Calculator
The fixed monthly payment on a home or personal loan. See the EMI, the total interest you'll pay, and how much of every rupee is cost.
Your loan
Reducing-balance interest, the method used by Indian banks for home and personal loans.
Monthly payment
Year-by-year ledger
How the balance falls| Year | Principal paid | Interest paid | Balance left |
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How the EMI is calculated
The equated monthly instalment is EMI = P × i × (1+i)ⁿ / ((1+i)ⁿ−1), where P is the loan amount, i the monthly rate (annual rate ÷ 12) and n the number of months. Each instalment is the same, but early instalments are mostly interest and later ones mostly principal — that is why the balance falls slowly at first.
Two levers change the EMI most: a longer tenure lowers the monthly figure but raises total interest, while a prepayment cuts the principal directly and shortens the loan. On a ₹50 lakh loan at 8.5% for 20 years the EMI is about ₹43,391 and total interest is about ₹54.1 lakh.
EMI questions
What is the formula for EMI?
EMI = P × i × (1+i)ⁿ ÷ ((1+i)ⁿ − 1), where P is the loan, i the monthly interest rate (annual ÷ 12) and n the number of months. It spreads principal plus reducing-balance interest into equal instalments.
What reduces my EMI — a longer tenure or a prepayment?
A longer tenure lowers the monthly EMI but you pay far more interest overall. A prepayment reduces the outstanding principal directly, which either shortens the loan or lowers future EMIs while cutting total interest.
What is the EMI on a ₹1 crore home loan at 8.5% for 20 years?
About ₹86,782 a month. Over the full 20 years that adds up to roughly ₹2.08 crore, of which about ₹1.08 crore is interest.