Estimate your monthly loan EMI, total interest and total repayment amount. Use the calculator to compare different loan amounts, interest rates and repayment periods before making a borrowing decision.
An Equated Monthly Installment (EMI) is the scheduled amount a borrower pays each month toward a loan. For a standard reducing-balance loan, the EMI generally contains two components: repayment of the principal and payment of interest charged on the outstanding loan balance.
Although the scheduled EMI may remain broadly constant for a standard fixed-rate loan, the proportion going toward interest and principal changes over the repayment period. Early installments generally contain a larger interest component because the outstanding principal is higher.
A standard reducing-balance loan EMI can be calculated using the following mathematical formula:
This formula assumes a standard amortising loan where the monthly interest rate and number of installments are used to determine the scheduled payment.
Principal
The original loan amount borrowed.
Monthly Rate
Annual interest rate divided by 12 and converted from a
percentage to a decimal.
Number of Payments
Total number of monthly installments over the loan tenure.
If the annual interest rate is 8.5%, the monthly rate used in the formula is:
r = 8.5 ÷ 12 ÷ 100 = 0.0070833
If the loan tenure is 20 years, the number of monthly payments is:
n = 20 × 12 = 240 monthly installments
These converted values are then used with the principal amount in the EMI formula.
Consider a hypothetical loan of ₹40 lakh at an annual interest rate of 8.5% for 20 years.
The estimated EMI is the scheduled monthly repayment under the assumptions above. Over the full 20-year period, the borrower would make 240 monthly payments.
The exact total interest is determined by the EMI calculation and the outstanding principal over time. A longer tenure can reduce the monthly EMI but can substantially increase the total interest paid.
The example is for illustration only. Actual lender calculations may differ because of the specific interest-rate structure, payment dates, rounding conventions, fees, charges and other contractual terms.
Estimate your monthly repayment before taking a loan and consider whether the payment fits comfortably within your overall household budget.
Change the loan amount, interest rate or tenure to see how different borrowing scenarios affect your estimated EMI.
Look beyond the monthly EMI and understand the estimated total interest payable over the entire repayment period.
Use the calculation as one input when comparing loan offers and assessing your borrowing requirements.
For a standard amortising loan, interest is calculated based on the outstanding principal. At the beginning of the loan, the outstanding balance is relatively high, so a larger portion of the scheduled payment may go toward interest.
As principal is repaid, the outstanding balance decreases. The interest component therefore generally decreases over time, while a larger portion of the payment goes toward principal.
This is why looking only at the EMI may not provide a complete picture of the cost of borrowing. Total interest and total repayment are also important when comparing loan options.
A shorter repayment period usually means a higher monthly EMI, but the loan may accumulate less interest because the principal is repaid over a shorter period.
A longer repayment period generally reduces the monthly EMI, but interest can accumulate for a longer period and increase the overall repayment cost.
This calculator provides an estimate, not a lender quotation.
The calculation assumes the loan amount, interest rate and repayment tenure entered by the user. Actual lender terms may differ because of fixed or floating interest rates, rate revisions, payment dates, daily or monthly interest calculations, rounding methods, processing fees, insurance, taxes, prepayments, foreclosure conditions, late-payment charges and other applicable terms.
The calculator also does not determine whether you qualify for a particular loan or interest rate. Lenders may consider income, credit history, employment, existing obligations, collateral and their own eligibility policies.
Home loans typically involve relatively large principal amounts and longer repayment periods. The actual interest rate and tenure depend on the lender, borrower profile and loan terms.
Car loans generally have shorter repayment periods than home loans. Compare the interest rate, tenure, processing charges and other applicable costs before borrowing.
Education loans can have specific repayment structures, including repayment schedules that differ during or after the study period. Check the lender's agreement for the exact terms.
Personal loans are generally unsecured and can have different interest rates depending on the lender and borrower profile. Compare the total borrowing cost rather than EMI alone.
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