EMI Calculator
Affordability check
Your EMI should ideally be under 40% of your monthly take-home income. If this EMI exceeds that, consider a longer tenure or a smaller loan.
View amortization schedule (yearly)
| Year | Principal | Interest | Balance |
|---|
Related calculators
How is EMI calculated?
Your Equated Monthly Instalment (EMI) is fixed using the standard reducing-balance formula:
Worked example: ₹20 lakh home loan at 8.5% for 20 years
Using the formula with P = ₹20,00,000, r = 8.5 ÷ 12 ÷ 100 = 0.007083 and n = 240 months: EMI = ₹17,356. Over the full tenure you repay ₹41,65,480 — of which ₹21,65,480 is interest, more than the loan itself. That is why even small changes in rate or tenure matter so much. Enter your own numbers above (or read our 7 ways to reduce your EMI) to see your exact split.
Factors that change your EMI
- Loan amount (P): EMI rises in direct proportion — borrow ₹10 lakh more and your EMI is exactly twice as high, all else equal.
- Interest rate (r): on a 20-year ₹50 lakh loan, the difference between 8.5% and 9.5% is about ₹3,500 every month and roughly ₹8.4 lakh in total interest.
- Tenure (n): a longer tenure lowers the EMI but raises total interest. 15 years instead of 20 on ₹20 lakh at 8.5% raises the EMI by ~₹3,300 yet saves ~₹5.3 lakh in interest.
Tips to reduce your EMI burden
- Make a larger down payment to shrink the principal.
- Pre-pay a portion each year — even 1 extra EMI/year cuts tenure significantly.
- Compare rates across 3–4 lenders; even 0.25% matters over 20 years.
- Keep EMI under 40% of net take-home pay to stay financially safe.
How this calculator works
This tool applies the standard reducing-balance EMI formula used by Indian banks and NBFCs (RBI's external benchmark framework applies to most floating-rate retail loans since October 2019). Everything is computed instantly in your browser — no login, no data stored. It doubles as a loan calculator with an amortization schedule: open "View amortization schedule" above to see the year-wise principal/interest split of every payment. Content reviewed and updated for 2026.
Related guides: How to reduce your home loan EMI · EMI vs SIP: which comes first? · Home Loan Eligibility Calculator · Loan Refinance Calculator
Frequently asked questions
What is an EMI?
EMI (Equated Monthly Instalment) is the fixed amount you pay every month to repay a loan. Each EMI splits into a principal part and an interest part.
How is EMI calculated with an example?
EMI = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1). For a ₹20 lakh loan at 8.5% for 20 years: P = 20,00,000, r = 0.007083, n = 240, which gives an EMI of ₹17,356.
How much is the EMI for a 20 lakh home loan?
It depends on rate and tenure. At 8.5% for 20 years, a ₹20 lakh home loan has an EMI of about ₹17,356; at 9% it rises to about ₹17,992. Use the sliders above for your exact figure.
Does prepayment reduce my EMI?
Prepayment usually reduces either your EMI or your tenure. Reducing tenure saves far more total interest; ask your bank to keep EMI the same and shorten the term. See seven practical ways to reduce your EMI.
What is a good EMI-to-income ratio in India?
Most lenders and financial planners suggest keeping total EMIs under 40% of your monthly take-home pay — and under 30% if you're a single-income household with dependants.
Why is my actual bank EMI slightly different?
Banks may add processing fees, GST on charges, or use a slightly different rate. The EMI shown is the pure principal+interest calculation.
Is this EMI calculator free?
Yes — 100% free, no login, no data stored. Everything is calculated in your browser.