Loan EMI Calculator

EMI (Equated Monthly Installment) is calculated using the standard amortization formula: EMI = P × r × (1+r)^n / ((1+r)^n − 1), where P is the principal amount, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments. The key insight of this formula is that early payments are predominantly interest, while later payments pay down more principal. This is why making extra principal payments early in a loan term saves disproportionately large amounts of total interest.

Understanding the full cost of a loan before signing is essential. A ₹10,00,000 home loan at 8.5% for 20 years means monthly EMI of approximately ₹8,678 — but by the end of 240 payments, you will have paid ₹20,82,720 total, meaning you paid more than double the original loan amount in total cost. Comparing EMIs at different tenures (15 vs 20 vs 25 years) or different interest rates (8.5% vs 9.0%) reveals the true financial impact. Use this calculator when evaluating home loans, car loans, personal loans, or any fixed-rate installment debt.