EMI Calculator
Calculate your monthly EMI for home loan, car loan, personal loan or education loan. Enter loan amount, interest rate, and tenure to get EMI, total interest, and full payment breakdown.
₹10.00 L
Results
You pay ₹10.83 L as interest — 108% of principal
Frequently Asked Questions
What is EMI and how is it calculated?
EMI (Equated Monthly Instalment) is the fixed monthly payment for a loan. Formula: EMI = P × r × (1+r)^n / [(1+r)^n – 1]. Where P = principal, r = monthly interest rate (annual rate ÷ 12 ÷ 100), n = tenure in months. Example: ₹10L home loan at 8.5% for 20 years: r = 8.5/12/100 = 0.00708; n = 240; EMI = ₹8,678/month.
What is a good EMI to income ratio?
Financial advisors recommend keeping total EMI below 40–50% of take-home salary. For home loans specifically, EMI should be under 30–35% of salary. Example: If take-home is ₹50,000/month, total EMIs should not exceed ₹20,000–25,000. Higher EMI-to-income ratio means less money for savings and emergencies.
How to reduce home loan EMI?
4 ways: (1) Higher down payment — borrow less, (2) Longer tenure — spreads payments but increases total interest, (3) Lower interest rate — negotiate or switch lenders, (4) Part prepayment — reduces principal and future EMIs. Paying even 1 extra EMI per year can cut 3–4 years off a 20-year loan.
What is the difference between flat rate and reducing balance?
Flat rate: Interest calculated on original principal throughout. 10% flat on ₹10L = ₹1L/year. Reducing balance (most bank loans): Interest calculated on outstanding principal, which decreases each month. 10% reducing on ₹10L is equivalent to ~18% flat rate. Always check which method your lender uses.
How much home loan can I get on my salary?
General rule: banks offer 60× monthly salary as home loan. Salary ₹30,000 → ₹18L. Salary ₹50,000 → ₹30L. Salary ₹1L → ₹60L. Actual amount depends on: existing EMIs, credit score (750+ for best rates), age, job stability. FOIR (Fixed Obligation to Income Ratio) should be under 50%.
Is it better to increase EMI or tenure for prepayment?
Increasing EMI is better — you pay off faster, saving significantly on total interest. Example: ₹30L loan at 8.5% for 20 years (EMI ₹26,035). Increasing EMI by ₹5,000 saves ~₹8L in interest and cuts tenure by ~5 years. Increasing tenure only reduces monthly burden without saving on interest.