EMI Calculator
Calculate your monthly loan EMI for home, car or personal loan
Yearly Amortization Schedule
| Year | Principal Paid | Interest Paid | Total Payment | Balance |
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What is EMI?
EMI (Equated Monthly Instalment) is a fixed monthly payment made by a borrower to a lender on a specified date each month. EMIs are used to pay off both the loan principal and the interest over a specified number of years.
EMI Calculation Formula
EMI = P × r × (1 + r)^n / ((1 + r)^n - 1)
Where:
P = Principal loan amount
r = Monthly interest rate = Annual rate / 12 / 100
n = Number of months = Years × 12
Types of Loans
Home Loan: Typically 8–9.5% interest, up to 30 years tenure. Longest tenure and lowest rate among all loan types.
Car Loan: Typically 8–12% interest, 1–7 years tenure. Rate depends on vehicle type and bank.
Personal Loan: Typically 10–24% interest, 1–5 years tenure. Highest rate as it is unsecured.
Frequently Asked Questions
What happens if I pay extra EMI?
Paying extra EMI reduces your principal faster, saving significant interest over the loan tenure. Most banks allow partial prepayment without penalty for floating rate loans.
Does EMI change with interest rate change?
For floating rate loans, EMI may change when the RBI changes repo rates. For fixed rate loans, EMI remains the same throughout the tenure.
What is a good EMI to income ratio?
Financial advisors recommend keeping total EMI obligations below 40–50% of your monthly net income. Exceeding this can strain your finances and reduce approval chances.