EMI Calculator
What is an EMI Calculator?
An EMI Calculator is a free online tool that works out the Equated Monthly Instalment you will pay on a loan. Knowing your EMI before you borrow tells you whether the repayment fits your monthly budget, and how much the loan will really cost once interest is added.
Enter the loan amount, the annual interest rate and the tenure in years. The calculator instantly shows your monthly EMI, the total interest payable and the total amount you will repay - and how that splits across every year of the loan.
Year-by-Year Repayment Schedule
Amortisation| Year | Principal Paid | Interest Paid | Outstanding Balance |
|---|
How Does an EMI Calculator Work?
Every EMI is the same amount, but what it pays for changes over time. Interest is charged on the outstanding balance, so early EMIs are mostly interest; as the balance falls, more of each EMI goes towards the principal. The calculator uses the standard reducing-balance formula to find the one fixed payment that clears the loan exactly on time.
Practical Example:
Suppose you take a loan of ₹10,00,000 for 5 years at an interest rate of 10% p.a.:
- Monthly EMI: ₹21,247
- Total Interest Payable: ₹2,74,823
- Total Amount Repaid: ₹12,74,823
What is the EMI Calculator Formula?
The formula used to calculate a fixed monthly EMI on a reducing-balance loan is:
Different types of loans and their details:
| Loan Type | Purpose | Typical Tenure | Indicative Interest Rate (p.a.) | Key Consideration |
|---|---|---|---|---|
| Home Loan | Buying, building or renovating a house | Up to 30 years | 8-10% | Longest tenure; tax benefits on principal and interest |
| Car Loan | Buying a new or used car | 1-8 years | 8.5-12% | Secured against the car; used-car loans cost more |
| Personal Loan | Any personal need - travel, medical, wedding | 1-7 years | 10.5-24% | Unsecured, so the rate depends heavily on credit score |
| Education Loan | Tuition and study costs in India or abroad | Up to 15 years | 8.5-14% | Repayment usually starts after a moratorium period |
| Two-Wheeler Loan | Buying a bike or scooter | 1-5 years | 9-20% | Small ticket, quick approval, higher rates |
| Gold Loan | Short-term funds against gold jewellery | Up to 3 years | 8.5-18% | Fast disbursal; gold can be auctioned on default |
| Loan Against Property | Large funds against a residential or commercial property | Up to 20 years | 9-14% | Lower rate than unsecured loans; property is collateral |
Rates are indicative and vary by lender, credit profile and the prevailing RBI repo rate.
Frequently asked questions
Everything you need to know — from what we do to how we do it — in one quick FAQ section.
OPEN ACCOUNTAn Equated Monthly Instalment (EMI) is the fixed amount you pay your lender every month until a loan is fully repaid. Each EMI covers part of the principal and the interest due for that month.
