What your EMI will be, and what the loan really costs
An EMI (equated monthly instalment) is the fixed amount you pay the bank every month until a loan is cleared. This page opens our loan calculator in rupees with an example of ₹10,00,000 at 8.5% for 20 years. Change the three numbers to match your offer and it shows the EMI straight away, along with the total interest, the total you'll repay and how much of that is interest. Below, a year-by-year table shows how much principal and interest you pay each year and the balance left, so you can see how slowly a long loan shrinks at first. It works for home loans, car and bike loans, personal loans and education loans with a fixed EMI.
Updated September 2026
How to calculate your EMI
- 1Type the loan amount, for example 2500000 for ₹25 lakh.
- 2Type the yearly interest rate from your bank's offer.
- 3Type the tenure in years, plus extra months if any.
- 4Read your EMI, total interest and the yearly schedule.
Reading the results
The big number is your EMI. Under it, Total interest is what the loan costs you on top of what you borrowed, and Total you pay is both together. The coloured bar shows how the total splits: on a 20-year home loan at 8.5%, interest is slightly more than the loan itself.
The yearly table lists, for each year of the loan, how much of your EMIs went to principal, how much to interest, and what you still owe at the end of that year. It's the easiest way to see how much a part-payment in a given year could save.
Typical tenures and what they cost
- Home loans: usually 15 to 30 years. Going from 20 to 30 years cuts the EMI by only about 11% at 8.5%, but adds nearly two thirds more interest.
- Car loans: usually 3 to 7 years, at higher rates than home loans.
- Personal loans: usually 1 to 5 years, at the highest rates, because there's no security.
- Education loans: often start after the course ends; use the amount owed at that point.
Ways to pay less interest
A common rule of thumb is to keep all your EMIs together under about 40% of your take-home pay, so there's room for savings and emergencies.
- Make a bigger down payment so you borrow less.
- Choose a shorter tenure if the EMI still fits your budget.
- Make part-payments early in the loan, when they save the most interest; ask the bank to reduce the tenure rather than the EMI.
- Compare offers by their EMI and total interest, not just the headline rate, and ask about switching lenders if rates have fallen.
Features
- Monthly EMI in rupees (or any currency)
- Total interest and total amount paid
- Principal vs interest bar
- Year-by-year principal, interest and balance
- Tenure in years plus months
- Indian number format (₹10,00,000.00)
Frequently asked questions
What is the formula for EMI?
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r is the monthly rate (yearly rate ÷ 12 ÷ 100) and n is the number of months. For ₹10,00,000 at 8.5% for 20 years, r = 0.007083 and n = 240, giving an EMI of about ₹8,678.
How much EMI will I pay for a ₹20 lakh home loan?
At 8.5% a year, about ₹17,356 a month over 20 years, or about ₹15,378 over 30 years; the longer tenure costs roughly ₹13.7 lakh more in interest. Type your own rate and tenure to see your exact figure.
Is a longer tenure better?
It lowers the EMI but raises the total interest a lot, because you borrow the money for longer. Pick the shortest tenure whose EMI you can comfortably afford; the Total interest figure shows the difference immediately when you change the years.
Why does most of my early EMI go to interest?
Interest is charged on the balance still owed, which is highest at the start. As the balance falls, the interest part shrinks and more of each EMI repays the loan. The yearly table shows this clearly.
Does this include processing fees or insurance?
No. It covers the loan amount and interest only. Processing fees, insurance, GST on fees and other charges are extra, so check the bank's sanction letter.
Does it work for floating-rate loans?
It calculates with one fixed rate. For a floating-rate loan, it shows the EMI at today's rate; when the rate changes, the bank changes your EMI or tenure, and you can recalculate with the new rate and the balance left.