EMI Calculator
Calculate EMI for any loan with principal, interest rate, and tenure
Current Market Rates: Home Loan: 6.5-20% | Personal Loan: 7-30% | Car Loan: 6-20% | Business Loan: 6-30%
₹9,650
(Principal + Interest)
Additional Charges
Shorter Tenure Impact
By reducing tenure by 2 years:
Current EMI:
₹9,650
New EMI:
₹9,998
EMI Increase:
+₹348
Total Interest Saved:
₹1,56,432
Interest Reduction:
11.9%
Current Tenure:
20 years
New Tenure:
18 years
Time Saved:
2 years
Recommendation: If you can afford ₹348 more monthly, you'll save ₹1,56,432 in interest and finish 2 years earlier.
Longer Tenure Impact
By extending tenure by 2 years:
Current EMI:
₹9,650
New EMI:
₹9,382
EMI Decrease:
-₹268
Additional Interest:
160848
Interest Increase:
12.2%
Current Tenure:
20 years
New Tenure:
22 years
Extra Time:
2 years
Consider: Lower EMI of ₹9,382 provides breathing room but costs ₹1,60,848 more in interest over 2 extra years.
Smart Financial Tips
Optimal EMI Strategy
Keep EMI under 40% of monthly income for comfortable repayment
Prepayment Priority
Use bonuses and extra income to reduce principal amount
Investment Balance
Invest 10-20% of EMI amount in SIP for wealth building
Emergency Planning
Maintain 6 months EMI as emergency fund
Grand Totals (20 Years)
Total EMI Paid
₹23,16,000
Total Principal Paid
₹10,00,000
Total Interest Paid
₹13,16,000
Total Tax Savings
₹2,63,200
(for home loans)
Net Cost After Tax
₹20,52,800
Year-Wise Summary Table
1,00,000
5
2
Net Savings after foreclosure fee: ₹91,492
Disclaimer: Actual foreclosure fees depend on lender terms. Check your loan agreement for exact charges.
EMI (Equated Monthly Installment) is the fixed amount you pay each month to repay your loan. It includes both the principal amount and the interest charged by the bank or financial institution. When you take a loan, the bank calculates your EMI using a specific formula that ensures you pay the same amount every month throughout your loan tenure. This makes budgeting easier as you know exactly how much you need to pay each month.
When you take a loan, the bank calculates your EMI using a specific formula that ensures you pay the same amount every month throughout your loan tenure. This makes budgeting easier as you know exactly how much you need to pay each month.
EMI Formula:
P = Principal loan amount
r = Monthly interest rate (Annual rate / 12 / 100)
n = Total number of months
For buying or building house
- • Up to 30 years tenure
- • Low interest rates
- • Tax benefits available
For new or used vehicles
- • Quick approval
- • 9-12% interest rate
- • Flexible tenure
For personal expenses
- • No collateral required
- • Quick funds
- • 10-15% interest rate
For business expansion
- • Working capital
- • Equipment financing
- • 12-20% interest rate
For higher studies
- • Moratorium period
- • Tax benefits
- • Flexible repayment
For two-wheelers
- • Fast processing
- • Minimal documentation
- • Competitive rates
Higher loan amount = Higher EMI
The principal amount directly affects your monthly payment. Borrow only what you need.
Higher interest rate = Higher EMI
Even a 0.5% difference can significantly impact your total payment. Compare rates from multiple banks.
Longer tenure = Lower EMI but higher total interest
Shorter tenure = Higher EMI but lower total cost. Choose based on your repayment capacity.
Plan Your Budget
Ensure your EMI doesn't exceed 40-50% of monthly income
Compare Offers
Compare interest rates and fees from multiple banks
Check Hidden Costs
Look for processing fees, prepayment charges, other costs
Maintain Good Credit
A good credit score (750+) helps get better interest rates
Consider Prepayment
Make extra payments when possible to reduce total interest
Emergency Fund
Maintain 6 months EMI as emergency fund
Example 1: Smart Home Loan Strategy
Meet Priya, 28-year-old software engineer earning ₹12 lakhs annually. She wants to buy a ₹75 lakh apartment with ₹15 lakh down payment.
Key Insight: By choosing 15-year loan, Priya saves ₹18.5L in interest but pays ₹7,080 more monthly. Since she earns ₹1L/month, the higher EMI is manageable and she saves significantly.
Advantages of EMI
No Large Upfront Payment
Preserve your savings and emergency funds
Credit Score Building
Regular EMI payments improve your credit history
Prepayment Flexibility
Reduce loan burden whenever you have extra funds
Tax Benefits
Home loan interest up to ₹2 lakhs deductible under 80C
Inflation Advantage
Inflation makes future EMIs relatively cheaper
Disadvantages to Consider
Higher Total Cost
Interest payments increase total expense
Default Risk
Missed payments affect credit score
Processing Fees
Additional charges on loan approval
Long-term Commitment
Monthly payments continue for years
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Calculations are estimates and not financial advice. Actual EMI may vary based on processing fees, prepayment charges, and other terms. Please consult with a financial advisor before making any loan decisions. All India calculators use Indian Rupee (INR) currency with Indian numbering standards (lakhs and crores).