EMI Calculator — Home, Personal, Car & Business Loans (2026)
Calculate your EMI (Equated Monthly Instalment) for any home, personal, car, education or business loan. Enter the loan amount, interest rate and tenure — the calculator shows your monthly EMI, total interest payable, and a year-wise amortisation schedule. Add an optional extra monthly payment to see how much tenure and interest you can save.
- Formula: EMI = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1), where r is the monthly rate and n the tenure in months
- Method: reducing-balance (compound) interest — the standard method for home, personal, car, education and business loans
- Interest front-loaded: early EMIs are mostly interest; later EMIs are mostly principal
- Prepayment: extra payments go straight to principal, cutting both tenure and total interest
| Principal Amount | — |
| Total Interest Payable | — |
| Total Payment | — |
| Year | Principal Paid | Interest Paid | Total Paid | Balance Remaining |
|---|
BankersClub — Promotion Exam Course
A higher salary doesn’t just help you save more — it changes what loan you can prepay.
A Clerk → Scale I promotion adds ₹8,000–15,000/month — more than enough to change your prepayment plan. India's only chapter-by-chapter promotion exam course. 43 chapters, 645+ MCQs. Founding member price: ₹1,199.
How EMI Is Calculated
Almost every bank and NBFC loan in India uses the reducing-balance (compound interest) method:
EMI = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1)
- P — the loan amount (principal)
- r — the monthly interest rate (annual rate ÷ 12 ÷ 100)
- n — the tenure in months
Each month, interest is charged only on the outstanding balance — not on the original loan amount. So as the balance shrinks, the interest component of each EMI shrinks too, and the principal component grows, even though the EMI itself stays fixed for the whole tenure. This is why the amortisation schedule above shows a much larger share of interest in the early years than in the final years.
Worked Example
A ₹25,00,000 home loan at 8.5% p.a. for 20 years works out to an EMI of ₹21,696. Over the full tenure, total interest payable is ₹27,06,939 — meaning the total repayment is ₹52,06,939, more than double the amount borrowed. Adding an extra ₹5,000 a month towards principal from the start would close this loan roughly 6 years early and save well over ₹8 lakh in interest — try it in the calculator above.
This EMI Calculator vs. the Staff Housing Loan EMI Calculator
If you’re a PSU bank employee calculating your own staff housing loan, use the Staff Housing Loan EMI Calculator instead — PSB staff loan schemes charge simple interest, not the reducing-balance compound interest this general calculator uses for market loans. Using the wrong method will give you a noticeably incorrect EMI for a staff loan.
Frequently Asked Questions — EMI Calculator
What is the EMI formula?
EMI = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the tenure in months. This is the standard reducing-balance (compound interest) formula used by banks and NBFCs for home, personal, car, education and business loans.
Why does the interest portion of my EMI reduce over time?
Interest is charged each month only on the outstanding loan balance, not on the original loan amount. As you repay principal, the balance shrinks, so the interest charged each month shrinks too. Since the EMI itself stays fixed, the principal portion of each EMI grows to make up the difference — this is why amortisation schedules show mostly interest in the early years and mostly principal in the later years.
How does prepayment reduce my loan tenure and interest?
An extra payment made on top of your regular EMI goes entirely towards reducing the outstanding principal, since the interest for that month has already been covered by the EMI itself. A smaller outstanding principal means less interest charged in every subsequent month, which compounds over the remaining tenure — so even a modest extra monthly payment can meaningfully cut both the loan tenure and the total interest paid.
Is this EMI calculator suitable for a bank staff housing loan?
No — PSU bank staff housing loan schemes typically charge simple interest, not the reducing-balance compound interest this calculator uses for market loans. Use the site’s separate Staff Housing Loan EMI Calculator for an accurate figure on a staff loan; using this general calculator for a staff loan will give an incorrect result.
What loan types can this EMI calculator be used for?
This calculator works for any loan that uses reducing-balance compound interest, which includes home loans, personal loans, car loans, education loans and business loans from banks and NBFCs. It is not suitable for loans that use simple interest, such as PSU bank staff loan schemes.