Loan Calculator

This loan calculator works out the EMI (Equated Monthly Installment) for any loan, along with the total interest you will pay and a full month-by-month amortisation schedule. Enter the loan amount, the annual interest rate your bank or NBFC is quoting, and the tenure, and it instantly shows what a single fixed monthly payment will be — exactly the way a home, car, personal, or education loan is repaid in India. It is built for anyone comparing loan offers, planning a big purchase, or checking whether a borrowing decision actually fits the monthly budget.

How the EMI formula works

The calculator uses the standard reducing-balance annuity formula that every Indian lender uses:

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

Where:

• P = principal (the loan amount you borrow)
• r = monthly interest rate = annual rate ÷ 12 ÷ 100
• n = total number of monthly instalments (tenure in years × 12)

The EMI stays the same every month, but its split changes. Interest is charged on the outstanding balance, so in the early months most of your EMI goes towards interest and only a little towards principal. As the balance shrinks, the interest portion falls and more of each EMI chips away at the principal — which is why a loan feels like it "barely moves" in the first couple of years. The amortisation table below the result breaks down every single instalment into principal, interest, and remaining balance.

Worked example in ₹

Suppose you take a ₹25,00,000 (₹25 lakh) home loan at 8.5% per annum for 20 years. Here r = 8.5 ÷ 12 ÷ 100 = 0.007083 and n = 240 months. Plugging into the formula gives an EMI of about ₹21,696 per month. Over the full tenure you repay roughly ₹52.07 lakh in total — meaning you pay around ₹27 lakh in interest alone, more than the principal itself. That is the real cost of a long tenure, and the "Principal vs Interest" bar above makes it visible at a glance.

Typical interest rates in India (FY 2026-27)

Rates are indicative and depend heavily on your CIBIL/credit score, lender, and whether the loan is secured. Use these as broad guidance, not a quote:

Key factors and money-saving tips

• Tenure is a double-edged sword. A longer tenure lowers the EMI but sharply increases total interest. Use the "Compare Loan Terms" tool to see 3 vs 10 years side by side before you commit.
• Pre-pay when you can. Even a small extra amount towards principal each month, or an annual lump-sum part-payment from your bonus, can cut years off the loan. Add a figure in "Extra Monthly Payment" to see your debt-free date move earlier.
• Floating vs fixed. Most Indian home loans are floating and linked to an external benchmark (usually the RBI repo rate under the RLLR system), so your EMI or tenure can change when the RBI revises rates. Fixed-rate loans lock the rate but usually start higher.
• Check the all-in cost. The advertised rate is not the only cost — processing fees (typically 0.25%–2% of the loan), documentation, and insurance add up. Compare the effective cost, not just the headline rate.

Common mistakes & India-specific notes

• Confusing reducing-balance with flat rate. Some vehicle and personal loan ads quote a "flat" rate that looks low but is roughly double the equivalent reducing-balance rate. This calculator uses reducing balance — always ask the lender to confirm which one their quote uses.
• Ignoring the EMI-to-income ratio. Lenders generally prefer your total EMIs to stay under about 40%–50% of net monthly income. Borrowing to the absolute maximum leaves no cushion for emergencies.
• Forgetting tax benefits on home loans. Under the old tax regime, home-loan interest (Section 24b, up to ₹2 lakh on a self-occupied house) and principal (Section 80C) can reduce taxable income. These deductions are largely unavailable under the new regime, so factor your chosen regime into the true cost.
• Overlooking foreclosure rules. RBI bars banks and NBFCs from charging foreclosure/prepayment penalties on floating-rate loans taken by individuals — a big reason pre-payment is so powerful in India. Fixed-rate loans may still carry a charge, so confirm before pre-closing.