Loan planning utility
EMI Calculator India – Home, Car & Personal Loan
Estimate EMI, total interest, prepayment savings, and fixed-versus-floating rate scenarios.
Calculate your loan EMI
View yearly amortization estimate
| Year | Principal paid | Interest paid | Balance |
|---|
EMI formula
For principal P, monthly interest rate r, and n monthly payments:
EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1)
At 0% interest, EMI is simply principal divided by the number of months.
Fixed versus floating-rate comparison
The second rate shows how a changed rate would affect EMI if the remaining term stayed the same. In practice, a lender may adjust EMI, tenure, or both.
Review the RBI’s guidance on floating-rate EMI resets and your lender’s Key Fact Statement before borrowing.
Assumptions and limitations
The estimate uses a monthly reducing balance, a constant entered rate, monthly payments, and immediate application of the optional extra payment to principal. It excludes fees, insurance, taxes, changing rates, daily-interest conventions, and lender-specific rounding.
Official RBI source last checked: 19 September 2026 · Floating-rate EMI reset guidance · Educational estimate, not a loan offer · Editorial policy
Frequently asked questions
How is loan EMI calculated?
EMI is calculated from principal, monthly interest rate, and number of monthly payments using the reducing-balance loan formula shown on this page.
Does prepayment reduce EMI or loan tenure?
This calculator keeps the regular EMI unchanged and applies the extra payment to principal, which shortens the estimated tenure and reduces interest.
Can floating-rate EMI change?
Yes. A lender may change the EMI, tenure, or both when its applicable benchmark and loan rate reset. Model more than one rate before borrowing.
What this calculator estimates
An EMI is the fixed monthly payment used to repay a reducing-balance loan. Each payment covers interest on the outstanding principal and a portion of principal.
Worked examples
- ₹5,00,000 at 10% for 5 years produces an estimated EMI of about ₹10,624.
- ₹20,00,000 at 8.5% for 20 years produces an estimated EMI of about ₹17,356.
Methodology and assumptions
The calculator converts the entered annual nominal rate to a monthly rate, converts the tenure to monthly instalments, and applies the standard reducing-balance annuity formula. It assumes the rate and scheduled payment stay constant; optional prepayments are applied to the outstanding balance after the scheduled instalment.
Authoritative sources
- FAQs on reset of floating interest rates on EMI-based personal loansReserve Bank of India
- Financial education guide: borrowing, interest and compoundingReserve Bank of India
Sources last checked September 10, 2026. Regulations and guidance can change; use the linked authority for the current position.
Related tools
Calculation, source, and limitation check completed September 10, 2026 by Ajit Naskar. No independent professional review is claimed.