EMI Calculator

An EMI (Equated Monthly Installment) is the fixed amount you pay every month to repay a loan. Our free EMI calculator instantly shows your monthly payment, total interest payable, and a full year-by-year repayment schedule — for any loan type: home loan, car loan, personal loan, education loan, loan against property, two-wheeler loan, or gold loan. No registration required. It's the best way to borrow with confidence.

What is an EMI Calculator?

An EMI calculator is a free online tool that computes your Equated Monthly Installment — the fixed monthly amount you must pay until a loan is fully repaid. It uses three inputs: your loan amount (principal), the annual interest rate, and the loan tenure in months. The result is your exact monthly outflow, along with the total interest cost over the full loan period. You can use this calculator for all major loan types: home loans, personal loans, car loans, two-wheeler loans, education loans, loan against property, and gold loans. If you're ready to borrow, you can apply directly through Deal4Loans. Follow below mentioned steps to calculate your loan EMI:

• Enter the Loan Amount — the total amount you want to borrow (e.g., ₹5,00,000 for a personal loan or ₹50,00,000 for a home loan).
• Enter the Interest Rate — use the annual reducing rate (interest charged on the outstanding balance, not the original loan amount). Most banks quote reducing rates.
• Enter the Loan Tenure — the number of months to repay (e.g., 60 months = 5 years, 240 months = 20 years).
• Click Calculate — your monthly EMI, total interest payable, flat rate equivalent, and a year-by-year breakdown will appear instantly.
• Adjust and Compare — try different loan amounts and tenures until you reach an EMI that is within 40–50% of your monthly income. Enter rates from different banks to compare side-by-side.

Along with your EMI you also get:

1. Total amount with interest.
2. Flat interest rate PA / PM.
3. Total interest amount.
4. Yearly interest amount.

If you think the EMI is a bit more than you can afford, you can always re-calculate. This time enter either less loan amount or longer loan tenure in the calculator. You can also continue to re-calculate until our calculator gives you an EMI that you are satisfied with. Also, remember to compare quotes from different banks. You can do this by entering the loan amount and the rate of interest with the loan tenure of, say bank "A". See how much it amounts to. Then do the same again of bank "B". Whichever suits your needs and fits your wants, apply. In today’s scenario, banks are coming your way with a range of loan offers for your loan requirements. To have the finest deal from these banks, one should consider the following factors before cracking a deal. Don’t be corrupted by paying high EMIs at low rate of interest.

Formula of Calculation of EMI

The EMI is calculated using the standard reducing-balance formula:

EMI = [P × R × (1+R)ᴺ] / [(1+R)ᴺ – 1]

Where:
P = Principal loan amount
R = Monthly interest rate = Annual interest rate ÷ 12 ÷ 100
N = Total number of monthly instalments (tenure in months)

Example: For a ₹10 lakh loan at 10% annual interest for 5 years — R = 10÷12÷100 = 0.00833, N = 60. EMI = ₹21,247 per month.

Here are some examples of loan amounts with pre-calculated EMIs:

EMI Calculation Examples

Home Loan EMI Calculation Example:

Personal Loan EMI Calculation Example:

Car Loan EMI Calculation Example:

Flat Rate vs Reducing Rate — Comparison

When comparing loan offers, it's critical to understand the difference between flat and reducing interest rates. A flat rate is calculated on the original loan amount for the entire tenure, while a reducing rate is calculated only on the outstanding balance. This fundamental difference can significantly impact your total interest cost.

Important Note: A flat rate of 7% and a reducing rate of ~12.5% result in a similar total interest cost — illustrating why flat and reducing rates must never be directly compared. Always ask your lender which rate type they're quoting, and use this calculator with the reducing rate for accurate comparison.

How to Lower Your EMI

If the calculated EMI feels too high, here are five effective ways to reduce it:

1. Increase your down payment — Borrowing less directly reduces your EMI. A higher initial payment reduces the principal, which proportionally lowers your monthly obligation. For example, increasing your down payment from 10% to 20% cuts your EMI by approximately 11%.
2. Extend the loan tenure — A longer repayment period reduces monthly payments. However, this comes at a cost: extending tenure increases the total interest paid. For instance, extending a home loan from 15 years to 20 years can reduce your EMI by 20% but increase total interest by 35%. Always balance affordability with long-term cost.
3. Negotiate a lower interest rate — A good credit score (750+) gives you leverage to negotiate better rates. Even a 0.5% reduction in interest rate can save tens of thousands over a long tenure. Contact multiple lenders and leverage competitive offers to secure the best rate.
4. Choose a lender with lower rates — Interest rates vary significantly across lenders. Even if you have an existing loan offer, shopping around with other banks or fintech lenders may yield a lower rate. Use our calculator to compare rates from different lenders side-by-side.
5. Make a partial prepayment — Paying a lump sum reduces the principal, which lowers future EMIs or shortens your tenure. Prepaying in the early years saves the most interest, as most early payments go toward interest. Many lenders offer zero prepayment charges, giving you the flexibility to pay off part of your loan early without penalty.

  Better compare EMIs with same tenure And then with rate of interest
 
(1) Know Your EMI Affordability: Your EMI should not exceed 40–50% of your monthly take-home income. If you earn ₹60,000/month, aim to keep total EMI obligations below ₹25,000. Use this calculator to experiment with different combinations until you find a comfortable amount.
 
(2) Compare Interest Rates Across Banks: Interest rates vary significantly across lenders — even a 0.5% difference on a ₹30 lakh home loan over 20 years can mean paying ₹1–2 lakh more in total interest. Always compare using the reducing rate (interest charged on outstanding balance). Beware: some agents quote flat rates, which are much lower-sounding but effectively much higher. Use our calculator to input rates from different banks and compare your EMI directly.
 
(3) Choosing the Right Loan Tenure: A longer tenure lowers your monthly EMI but increases total interest paid. A shorter tenure means higher monthly payments but significant interest savings. For example, a ₹20 lakh loan at 9% over 10 years costs ₹7.9 lakh in total interest. The same loan over 20 years costs ₹20.7 lakh — nearly 2.6× more. Use the calculator to see this trade-off clearly.
 
(4) Check Loan Disbursal Timelines: Banks vary in how quickly they process and disburse loans. Personal loans can be disbursed within 24–48 hours; home loans typically take 1–3 weeks. If your requirement is time-sensitive, confirm the turnaround time before applying.
 
(5) Factor in Processing Fees and Prepayment Charges: Your true loan cost includes more than just interest. Processing fees typically range from 0.5% to 2% of the loan amount. Some lenders charge a prepayment penalty of 2–4% if you close the loan early. Always prefer lenders with zero prepayment charges — this gives you flexibility to pay off the loan early and save on interest, or transfer to a lower-rate lender.
 
(6) Should You Take Loan Insurance?: Some lenders offer loan protection insurance, where a small premium is added to your EMI. This covers your outstanding loan balance in case of death or permanent disability, ensuring the liability does not pass to your family. While not mandatory, it is worth considering for large long-tenure loans like home loans, especially for sole earners.

FAQs on EMI Calculator

Q: What is an EMI calculator?
Ans: An EMI calculator is a financial tool used to calculate Equated Monthly Installments (EMIs) for loans or mortgages. It helps borrowers estimate their monthly repayment amount based on the loan amount, interest rate, and tenure.

Q: How does an EMI calculator work?
Ans: An EMI calculator uses the following formula to calculate the EMI: EMI = P * r * (1 + r)^n / ((1 + r)^n - 1) where:

• P is the principal amount
• r is the interest rate
• n is the number of months

Q: What are the benefits of using an EMI calculator?
Ans: An EMI calculator helps you plan your loan finances before applying. Benefits include: (1) Instant results with no manual calculation needed; (2) Budget check — see if the EMI fits within 40% of your income; (3) Bank comparison — change the interest rate to compare SBI, HDFC, ICICI and other lenders side-by-side; (4) Total interest awareness — understand your full cost of borrowing, not just the monthly figure; (5) Prepayment planning — model the impact of making lump-sum payments on your loan balance.

Q: Can I use an EMI calculator for any type of loan?
Ans: Yes, you can use an EMI calculator for any type of loan, including home loans, car loans, personal loans, and credit card debt consolidation loans.

Q: How to use an EMI calculator?
Ans: To use an EMI calculator, you will need to enter the following information:

• The loan amount
• The interest rate
• The number of months

Once you have entered this information, the calculator will calculate the EMI amount.

Q: Can I use an EMI calculator for prepayment calculations?
Ans: Some EMI calculators also offer a feature to calculate the impact of making prepayments on your loan. It helps you understand how additional payments can reduce your loan tenure and interest costs.

Q: Can I calculate the total interest paid using an EMI calculator?
Ans: Some EMI calculators provide the option to view the total interest paid over the loan tenure along with the EMI amount. This can help you understand the cost of borrowing more effectively.

Q: What is the difference between flat rate and reducing rate interest?
Ans: With a flat rate, interest is calculated on the original loan amount for the entire tenure. With a reducing (diminishing) rate, interest is calculated only on the outstanding balance, which decreases each month as you repay. A flat rate of 7% is roughly equivalent to a reducing rate of 12.5–13%. Always confirm which rate a lender is quoting — the EMI calculator on this page uses the reducing rate method.

Q: How much EMI can I afford on my salary?
Ans: A standard rule is that your total monthly EMI obligations should not exceed 40–50% of your net monthly income. For example, if your take-home salary is ₹50,000, your total EMIs across all loans should stay below ₹20,000–₹25,000. Banks typically use this same 40–50% threshold (called FOIR — Fixed Obligation to Income Ratio) when assessing loan eligibility.

Q: Does a higher down payment reduce my EMI?
Ans: Yes. Your EMI is calculated on the loan amount (principal), so borrowing less means a lower monthly payment. For a ₹50 lakh home at 9% over 20 years: with a 20% down payment (₹10 lakh down, ₹40 lakh loan) the EMI is approximately ₹35,989. With a 10% down payment (₹5 lakh down, ₹45 lakh loan) the EMI is approximately ₹40,488 — a difference of ₹4,499 per month.

Q: What happens to my EMI if the interest rate changes?
Ans: For floating-rate loans, if the RBI repo rate increases or your bank revises rates upward, your EMI will either increase or your tenure will be extended — depending on your bank's policy. For fixed-rate loans, your EMI remains unchanged regardless of market movements. Use this calculator to model the impact of a rate change by adjusting the interest rate field.

Q: Is it better to reduce EMI or reduce tenure when making a prepayment?
Ans: Reducing the tenure saves more money overall, as it eliminates more future interest payments. Reducing the EMI improves your monthly cash flow but extends the time you remain in debt. If you are financially comfortable, always opt to reduce tenure — you will pay off the loan faster and save significantly on total interest.