Financial Planning

EMI Calculator

Work out your monthly instalment on a home, car or personal loan, then test a prepayment and watch the interest bill and the loan tenure shrink in real time.

Loan details

Standard reducing-balance EMI, the method every Indian bank uses.

Loan amount Up to ₹5 crore

₹

₹1L₹1.25Cr₹2.5Cr₹3.75Cr₹5Cr

Interest rate (p.a.) Reducing balance

1%5%10%15%20%

Loan tenure

1 yr10 yr20 yr30 yr

Prepayment Optional, see the savings

For guidance only, consult Taxopd before acting. Actual bank EMIs can differ marginally due to disbursement dates, processing fees, insurance bundling and rounding conventions.

Year By Year

Amortisation schedule

How each year of EMIs splits between interest and principal, including any prepayments you have added above.

Year	Opening balance	Principal repaid	Interest paid	Prepayment	Closing balance

Understand The Numbers

How your EMI is calculated

One formula decides every reducing-balance loan in India, here is what is inside it.

The formula

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

Here P is the amount borrowed, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly instalments. The EMI stays constant, but its composition changes every month: interest is charged only on the balance still outstanding, so early EMIs are interest-heavy and the principal share grows as the balance falls.

That is exactly why prepayment is so powerful. Every extra rupee goes straight to the principal, and all the future interest that rupee would have generated, often for 15 or 20 more years, simply disappears from your schedule.

Worked example

Scenario: Home loan of ₹30,00,000 at 9% p.a. for 20 years (240 months). Monthly rate r = 9 ÷ 12 ÷ 100 = 0.0075.

(1 + r)ⁿ(1.0075)²⁴⁰ ≈ 6.009

EMI≈ ₹26,992 per month

Total paid over 240 months≈ ₹64,78,000

Interest component≈ ₹34,78,000

Interest ends up larger than the loan itself, which is normal for long tenures, and the reason even small prepayments matter.

Common Questions

EMI FAQs

Because interest is computed on the outstanding balance, and at the start the balance is at its peak. On a ₹50L loan at 8.5%, the first month's interest alone is about ₹35,400, so most of a ₹43,000 EMI goes to interest and only the remainder chips away at principal. As the balance falls the split reverses, and in the final years almost the whole EMI is principal. The amortisation table above shows this crossover year by year.

Rupee for rupee, money paid earlier saves more, because it stops compounding for longer. A lumpsum in month 24 usually beats the same total spread over years, but a disciplined monthly top-up you actually stick to beats a lumpsum you keep postponing. Try both modes in the calculator with realistic numbers for your situation. Also note: RBI rules bar foreclosure and prepayment charges on floating-rate loans to individuals, so for most home loans prepaying is penalty-free.

On a floating-rate loan, banks usually keep the EMI unchanged and stretch or shorten the tenure instead, a rate hike can quietly add years to your loan. You can ask the bank to raise the EMI and hold the tenure instead, which is almost always cheaper overall. Re-run this calculator with the new rate to see what your revised tenure or EMI should look like before you call the bank.

Small differences are normal. Banks may round the EMI to the nearest rupee or ten rupees, charge broken-period interest from the disbursement date to the first EMI date, disburse in tranches (common for under-construction property), or bundle insurance premiums into the loan. The formula here is the same one they use, the gap comes from these operational adjustments, not the maths.