Calculate your monthly EMI, total interest payable and complete amortisation schedule for any loan.
EMI = P × r × (1+r)^n ÷ [(1+r)^n − 1]. Where P = principal, r = monthly rate (annual ÷ 12 ÷ 100), n = months.
In early months, most of your EMI goes toward interest. Principal repayment increases gradually - this is how reducing-balance loans work.
Even one extra EMI per year significantly cuts total interest. Use the Home Loan Calculator to simulate prepayment impact.
A 0.5% difference in rate on a ₹50L home loan over 20 years can mean ₹4–5 lakh extra interest. Always compare lenders before signing.
An Equated Monthly Instalment (EMI) is the fixed amount a borrower pays each month toward repaying a loan - comprising both principal and interest. EMI-based lending has been central to India's credit expansion over the past two decades. The Reserve Bank of India (RBI) reported total outstanding bank credit of over Rs. 160 lakh crore by 2024, with home loans, auto loans, and personal loans being the three largest retail lending categories. Understanding EMI calculations helps borrowers compare loan offers, negotiate with banks, and plan monthly budgets accurately.
EMI is calculated using the formula: EMI = [P x R x (1+R)^N] / [(1+R)^N - 1], where P is the principal loan amount, R is the monthly interest rate (annual rate divided by 12), and N is the number of monthly instalments. For example, a home loan of Rs. 50 lakhs at 8.5% per annum for 20 years (240 months) results in a monthly EMI of approximately Rs. 43,391. This tool also generates a full amortisation schedule showing how each payment is split between interest and principal reduction over the loan tenure.
EMI calculations and compound interest concepts appear in the Quantitative Aptitude sections of SBI PO, IBPS PO, RBI Grade B, CAT, and SSC CGL exams. This calculator helps both loan applicants and exam candidates practise real-world financial mathematics.