EMI Calculator for Home, Car & Personal Loans
An EMI (Equated Monthly Instalment) is the fixed amount you repay each month on a loan - part interest, part principal. This calculator shows your EMI, the total interest you'll pay over the loan, and a year-by-year repayment schedule with how much of the loan is cleared at each stage. It handles home, car and personal loans, in arrears or in advance.
- Principal
- Interest
Year-by-year repayment schedule
| Year | Principal paid | Interest paid | Total paid | Balance | Loan paid to date |
|---|---|---|---|---|---|
| 1 | ₹1,65,830 | ₹83,270 | ₹2,49,100 | ₹8,34,170 | 16.58% |
| 2 | ₹1,81,386 | ₹67,714 | ₹2,49,100 | ₹6,52,784 | 34.72% |
| 3 | ₹1,98,401 | ₹50,699 | ₹2,49,100 | ₹4,54,383 | 54.56% |
| 4 | ₹2,17,013 | ₹32,088 | ₹2,49,100 | ₹2,37,370 | 76.26% |
| 5 | ₹2,37,370 | ₹11,730 | ₹2,49,100 | ₹0 | 100% |
How to calculate EMI
Every EMI is the same, but its split changes over time: early instalments are mostly interest, and later ones are mostly principal, because interest is charged on the shrinking outstanding balance. This is called a reducing-balance loan.
EMI = P · r · (1 + r)ⁿ / ((1 + r)ⁿ − 1)Example. A ₹10,00,000 loan at 9% for 5 years has an EMI of about ₹20,758, with roughly ₹2.45 lakh paid as interest over the full term.
Home loan, car loan and personal loan EMIs
The EMI formula is identical for all three - what differs is the rate and the tenure a lender will offer. Home loans run 15-30 years at the lowest rates because the property secures them. Car loans are typically 3-7 years at a few points higher. Personal loans are unsecured, so they carry the highest rates and the shortest terms, often 1-5 years. Enter whichever combination you have been quoted; the maths does not change.
EMI in arrears vs EMI in advance
Almost every loan is in arrears: the instalment is paid at the end of each month, after a month of interest has accrued. Some car and consumer lenders instead take the first EMI at disbursement, which is called EMI in advance. Because every payment arrives a month earlier, the instalment itself is slightly smaller and you pay less total interest - on a 10 lakh loan at 9% over 5 years, about 9,000 less. If a lender quotes an unusually low EMI, check which scheme they are using before comparing it with anyone else's.
How to lower your EMI or interest
A longer tenure lowers the monthly EMI but increases total interest, because the principal is outstanding for longer. A shorter tenure does the opposite. Prepaying - especially early in the loan, when the balance is highest - can dramatically cut the total interest you pay.
Frequently asked questions
How is EMI calculated on a home loan?
The same way as any reducing-balance loan: EMI = P x r x (1+r)^n / ((1+r)^n - 1), where P is the loan amount, r the monthly interest rate (annual rate divided by 12 and by 100) and n the number of months. A 50 lakh home loan at 8.5% over 20 years works out to an EMI of about 43,391.
What is EMI in advance, and is it cheaper?
In advance means the first instalment is taken at disbursement rather than at the end of the first month. Every payment then arrives a month earlier, so the instalment is smaller by a factor of (1 + monthly rate) and the total interest is lower. It is genuinely cheaper, but you part with the first EMI immediately - so compare the total paid, not just the monthly figure.
How much of my loan will be paid off after five years?
Less than you would expect on a long loan. The year-by-year schedule above shows it directly in the 'loan paid to date' column. On a 20-year home loan at 8-9%, only about 11 to 13 percent of the principal is cleared after five years - a quarter of the way through the term - because the early instalments are almost entirely interest.
What is a reducing-balance loan?
Interest is charged only on the remaining outstanding principal, which falls every month. Almost all modern home, car and personal loans use this method, and so does this calculator.
Does a longer tenure save money?
It lowers your monthly EMI, making it more affordable, but you pay more total interest because the loan runs longer. Choose the shortest tenure your budget comfortably allows.
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