EMI Calculator

Calculate loan EMIs and plan your repayments

Loan Details

Typical rate: 8.5%

Max tenure: 30 years

EMI Tips

• Keep EMI < 40% of monthly income
• Consider prepayments to reduce interest
• Compare rates across multiple lenders
• Check for processing fees and charges
• Maintain good credit score for better rates

Principal vs Interest Over Time

Outstanding Loan Balance

EMI Summary

Loan Amount:₹10,00,000
Interest Rate:8.5% p.a.
Loan Tenure:20 years
Monthly EMI:₹0
Total Interest:₹0
Total Amount:₹0

Payment Breakdown

Principal Amount
₹10,00,000
Interest Paid
₹0

Loan Insights

Interest Rate Type:Moderate
Interest % of Total:NaN%
Effective Annual Rate:8.50%
Home Loan Benefits:
• Tax benefits under Section 80C & 24(b)

What is an EMI?

An EMI (Equated Monthly Installment) is the fixed amount you pay your lender every month until your loan is completely repaid. Each EMI has two parts — interest and principal. In the early months, the interest portion is higher; later, the principal portion becomes larger.

EMIs make big purchases manageable — like a home, car, or personal expenses — by spreading the cost across months or years.

Types of Loans that Use EMI (with Examples)

  • Home Loan: ₹50 lakh over 20 years @ 8.5% p.a.
  • Car Loan: ₹10 lakh over 5 years @ 10% p.a.
  • Personal Loan: ₹3 lakh over 3 years @ 14% p.a.
  • Education/Two-wheeler/Gold Loans: Similar EMI structure with different rates/tenures.

How is EMI Calculated? (Formula)

The standard reducing balance method most banks/NBFCs use in India:

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

Where: P = loan amount (principal), r = monthly interest rate (annual rate ÷ 12 ÷ 100), n = total number of EMIs (months).

Example (Car Loan): P = ₹10,00,000; annual rate = 10% → r = 0.10/12; tenure = 60 months → plug into the formula to get EMI. Our calculator does this instantly for you.

Reducing vs Flat Interest (Know the Difference)

  • Reducing (declining) balance: Interest is charged on the outstanding principal each month. Standard for home/car/personal loans. Lower total interest.
  • Flat rate: Interest is charged on the entire original principal for the whole tenure. Looks cheaper on paper but costs more overall.

Tip: Always compare loans on a reducing-balance APR basis. Our EMI calculator uses the reducing method.

Amortization Schedule (How Your EMI Changes Inside)

An amortization schedule shows the month-by-month breakup of every EMI into interest and principal, along with the remaining balance.

  • Early months: Interest portion is high, principal portion is low.
  • Later months: Interest drops and principal repayment accelerates.

Example: On a 20-year home loan, the first-year EMIs are mostly interest-heavy; by year 15, most of your EMI goes toward principal.

Prepayment & Part-Payment (Save Interest)

  • Lump-sum prepayment: Pay extra once (bonus/savings). This directly reduces outstanding principal and interest cost.
  • Part-payment: Multiple smaller extra payments during the tenure.
  • Effect: Either lower the EMI (same tenure) or reduce tenure (same EMI). Reducing tenure usually saves more interest overall.

Example: On a ₹50 lakh home loan @ 8.5% for 20 years, a ₹2 lakh prepayment in year 3 can shave off many EMIs and lakhs in interest.

Note: Check your lender’s prepayment rules/charges (often nil for floating-rate home loans; may apply for fixed-rate loans or during lock-in).

Fixed vs Floating Interest Rates

  • Fixed rate: EMI stays the same throughout. Good for certainty; can be costlier if market rates fall.
  • Floating rate: EMI/tenure can change as market rates change. Good when rates are expected to fall; budget for fluctuations.

Other Costs to Consider

  • Processing fees: Typically a % of loan or a flat amount (+ GST).
  • Insurance: Credit life/asset insurance may be bundled or optional.
  • Penal charges: Late EMI fee, cheque bounce charges.
  • Prepayment/Foreclosure charges: Depends on loan type/rate regime.

Eligibility Basics (Quick Checklist)

  • Income & stability: Salary/business income and continuity.
  • Credit score: 750+ is generally preferred for better rates.
  • Debt-to-Income (DTI): Try to keep total EMIs ≤ 40–50% of monthly income.
  • Documentation: KYC, income proofs, bank statements, property/car docs (as applicable).

About the FinSarthi EMI Calculator (Features & How to Use)

The FinSarthi EMI Calculator gives you instant, accurate EMI results and a complete amortization schedule. It’s built for Indian loans and real-life planning.

Key Features

  • Accurate EMI computation: Reducing-balance formula with monthly rest.
  • Full amortization schedule: EMI-by-EMI interest/principal split, outstanding balance.
  • Prepayment simulator: One-time or multiple part-payments — see impact on tenure/interest.
  • Compare scenarios: Fixed vs floating, different tenures/rates side-by-side.
  • Processing fee & insurance add-ons: See total cost of borrowing with all charges.
  • Share & export: Download CSV/PDF schedule; share link with prefilled inputs.
  • Mobile-friendly + privacy-first: Works fast on all devices; we don’t store your data.

How to Use (Step-by-Step)

  1. Enter Loan Amount, Annual Interest Rate, and Tenure (months/years).
  2. (Optional) Add Processing Fee and insurance if applicable.
  3. Click Calculate to see EMI, total interest, and total payment.
  4. Open the Amortization Schedule to view month-wise breakup.
  5. (Optional) Add a Prepayment (amount + month) and choose “reduce tenure” or “reduce EMI”.
  6. Compare scenarios and download the schedule if needed.

Worked Examples

1) Home Loan

  • Loan: ₹50,00,000
  • Rate: 8.5% p.a. (r = 0.085/12)
  • Tenure: 240 months
  • EMI: Use calculator → shows EMI, total interest (often nearly equals/exceeds principal on long tenures).
  • Part-payment: Add ₹2,00,000 in month 24 → watch tenure drop and interest saved.

2) Car Loan

  • Loan: ₹10,00,000 @ 10% p.a., 60 months
  • EMI & schedule shown instantly; try adding small part-payments in months 12 & 24.

3) Personal Loan

  • Loan: ₹3,00,000 @ 14% p.a., 36 months
  • See higher interest load vs secured loans; shorter tenure saves interest.

Smart Tips to Reduce EMI Burden

  • Improve credit score for better rates.
  • Choose a slightly longer tenure to lower EMI (but prepay later to cut interest).
  • Make periodic part-payments (bonuses, tax refunds).
  • Refinance/balance transfer if rates drop or you qualify for a better offer.

FAQs on EMI (Expanded)

1) Why does my first EMI have the highest interest portion?

Interest is charged on outstanding principal. At the beginning, principal is highest, so interest share is larger.

2) Is EMI the same under fixed and floating rates?

Fixed: EMI stays the same. Floating: EMI or tenure can change when the lender revises rates.

3) What’s better — reducing EMI or reducing tenure after prepayment?

Reducing tenure usually saves more total interest. Reducing EMI improves monthly cash flow. Pick what you need most.

4) Are processing fees refundable if the loan doesn’t get disbursed?

Usually non-refundable once processed. Confirm terms with the lender.

5) Why is the “flat rate” EMI misleading?

Flat rate charges interest on the full principal for the whole tenure, ignoring monthly reduction — making it look cheaper than it is.

6) What is “monthly rest”, “daily rest”?

It’s the frequency of recalculating interest on outstanding principal. Monthly rest is common; daily rest benefits you slightly more if payments vary.

7) Can I align EMI date with salary credit?

Yes, most lenders allow choosing a suitable EMI date. Keep funds ready a day earlier to avoid bounce charges.

8) What is bounce/penal charge?

A fee for missed/returned EMIs plus penal interest for overdue days. Set up auto-debit and maintain balance to avoid it.

9) Will multiple loans hurt my eligibility?

Yes, higher total EMIs increase DTI and can reduce your eligible loan amount or increase offered interest rates.

10) Can I foreclose a floating-rate home loan without charges?

Many lenders allow zero/low foreclosure charges on floating-rate home loans for individuals. Check your agreement.

11) How does a balance transfer work?

You shift your outstanding loan to another lender offering a lower rate. Factor in processing/other charges and remaining tenure before deciding.

12) Why does a longer tenure cost more interest even if EMI is affordable?

Because you pay interest for many more months. Lower EMI is easier monthly, but increases total interest outgo.

13) Can I pay extra EMI every year instead of a lump-sum?

Yes — many use a “1 extra EMI per year” strategy. Our prepayment simulator can model this.

14) What documents do I need for a balance transfer?

Existing loan statement, list of documents (LOD), foreclosure letter/NoC, KYC, income proofs, property/vehicle papers as applicable.

15) Will part-payment change my EMI automatically?

Depends on lender policy. Some reduce tenure by default; others offer a choice. Confirm and get a revised schedule.

Final Thoughts – Plan Smart with the FinSarthi EMI Calculator

Loans are useful tools — if planned right. Use the FinSarthi EMI Calculator to find your EMI, view the full schedule, add prepayments, compare scenarios, and understand your total cost. Tweak tenure, rate, and extra payments to get a plan that fits your budget today and saves interest tomorrow.