Tool

EMI Calculator

An EMI is one fixed monthly payment split two ways — part covers that month's interest, the rest reduces what you still owe. Early on the split is brutal: on a ₹30 lakh home loan at 8.5%, the first ₹26,035 payment puts only ₹4,785 against the loan.

Put in the amount, rate and tenure to see the EMI, what the loan costs in total, and how much a small extra payment each month takes off. Hover the ? on any field if you're unsure what to enter. The full explanation is below — the same prepayment saves several times more in year three than in year fifteen, and it is worth knowing why.

Calculator

EMI Breakdown

Loan Amount (₹) ? What you actually borrow — the price of the house or car minus your down payment. Home loans are usually capped at 75–90% of the property value.

Interest Rate (%) ? The annual rate the lender charges. Home loans run about 8.5–9.5%, car loans 9–11%, personal loans 11–18%. Use the rate on your sanction letter, not the advertised one.

Tenure (Yrs) ? How long you take to repay. Stretching it lowers the monthly EMI but costs far more overall — on a ₹30 lakh loan at 8.5%, 20 years costs ₹32.5 lakh in interest and 30 years costs ₹53 lakh.

Extra Payment/mo (₹) ? Anything you pay above the EMI, which goes straight to reducing the outstanding loan. On that same ₹30 lakh loan, an extra ₹2,000 a month ends it about three years early.

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Monthly EMI ? The fixed amount debited every month for the whole tenure. Lenders generally want all your EMIs together to stay under 40–50% of take-home pay.

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Total Interest ? What the loan costs you on top of the amount borrowed. On a 20-year home loan this is often about as large as the loan itself.

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Total Payment ? Principal plus interest — the full amount you will have handed the lender by the last EMI. Worth comparing against the price of what you are buying.

Principal —

Interest —

How EMI is calculated

EMI stands for Equated Monthly Instalment. Every month you pay a fixed amount — part of it covers the interest for that month, and the rest chips away at the principal. In the early years, most of your EMI is interest. That flips gradually over time.

On a ₹30 lakh home loan at 8.5% for 20 years, your EMI is ₹26,035/month. In month one, ₹21,250 goes to interest and only ₹4,785 reduces the loan. By year 15, the split has reversed.

The formula

EMI Formula EMI = P × r × (1 + r)ⁿ ÷ [ (1 + r)ⁿ − 1 ]

Where: P = loan amount, r = monthly interest rate (annual rate ÷ 12), n = total number of monthly payments

Example: ₹30,00,000 loan at 8.5%/year for 20 years →
r = 8.5% ÷ 12 = 0.708% per month (0.00708), n = 240 months
EMI = 30,00,000 × 0.00708 × (1.00708)²⁴⁰ ÷ [(1.00708)²⁴⁰ − 1] = ₹26,035/month
Total repaid: ₹62.5 lakhs — ₹32.5 lakhs is interest on a ₹30 lakh loan.

Why prepaying early is so powerful

Because the interest in the early years is huge. A ₹1 lakh prepayment in year 3 of the above loan saves approximately ₹2.8 lakhs in total interest and cuts 14 months off your tenure. The same ₹1 lakh prepayment in year 15 saves less than ₹50,000. Use the "extra payment" input above to model your own scenario.

Frequently Asked Questions

How much home loan can I get on ₹1 lakh salary?

Banks typically allow total EMI obligations up to 40–55% of gross monthly income. At ₹1 lakh salary, that's ₹40–55k/month in EMI capacity, which corresponds to a home loan of ₹46–63 lakhs at current rates (8–9%). Your existing EMIs (car loan, personal loan) reduce this figure.

Fixed rate vs floating rate — which is better?

Floating rates in India have historically been lower over long loan tenures, but they carry uncertainty. If rates rise by 1–2%, your EMI jumps or tenure extends. Fixed rates give certainty but start higher. For a 20-year loan, most borrowers go floating and bet on rates stabilising or falling.

Does prepaying a home loan make sense?

Almost always yes in the first half of tenure. The guaranteed interest saving (8.5%) beats what a liquid fund or FD earns after tax. The exception: if you have high-interest debt elsewhere (credit card, personal loan), clear that first.

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