Finance & Banking CalcyZone Calculator

EMI Calculator (Home, Car & Personal Loan)

Calculate your monthly EMI for a home, car or personal loan in India, see the full amortisation schedule, and find out how much interest a prepayment saves.

Monthly EMI

₹43,391.16

Total interest

₹54,13,879

Total amount paid

₹1,04,13,879

Loan closes in

240 months

Interest saved by prepaying

₹0

Months saved

Step-by-step working

r = 8.5 / 12 / 100 = 0.007083
n = 20 × 12 = 240 months
(1 + r)^n = 5.441243
EMI = 50,00,000 × 0.007083 × 5.4412 / (5.4412 − 1) = ₹43,391.16

Year-wise amortisation schedule
Year	Principal	Interest	Prepayment	Closing balance
1	₹99,511	₹4,21,182	₹0	₹49,00,489
2	₹1,08,307	₹4,12,387	₹0	₹47,92,181
3	₹1,17,881	₹4,02,813	₹0	₹46,74,300
4	₹1,28,300	₹3,92,394	₹0	₹45,46,000
5	₹1,39,641	₹3,81,053	₹0	₹44,06,359
6	₹1,51,984	₹3,68,710	₹0	₹42,54,375
7	₹1,65,418	₹3,55,276	₹0	₹40,88,957
8	₹1,80,039	₹3,40,655	₹0	₹39,08,918
9	₹1,95,953	₹3,24,741	₹0	₹37,12,965
10	₹2,13,274	₹3,07,420	₹0	₹34,99,691
11	₹2,32,125	₹2,88,569	₹0	₹32,67,566
12	₹2,52,643	₹2,68,051	₹0	₹30,14,923
13	₹2,74,974	₹2,45,720	₹0	₹27,39,949
14	₹2,99,279	₹2,21,415	₹0	₹24,40,670
15	₹3,25,733	₹1,94,961	₹0	₹21,14,937
16	₹3,54,525	₹1,66,169	₹0	₹17,60,412
17	₹3,85,862	₹1,34,832	₹0	₹13,74,550
18	₹4,19,968	₹1,00,726	₹0	₹9,54,582
19	₹4,57,090	₹63,604	₹0	₹4,97,492
20	₹4,97,492	₹23,202	₹0	₹0

Mathematical Formula

EMI = P × r × (1 + r)^n / ((1 + r)^n − 1), where P = loan amount, r = annual rate / 12 / 100, n = tenure in months. Each month: interest = balance × r; principal = EMI − interest; prepayments reduce the balance (tenure shortens, EMI unchanged).

Overview & Explanation

An Equated Monthly Instalment (EMI) is the fixed amount you pay every month to repay a reducing-balance loan. Indian banks and NBFCs compute home, car and personal loan EMIs with the same formula; only the rate and tenure differ.

How It Works

Convert the annual rate to a monthly rate r and the tenure to months n.
Apply the EMI formula to get the fixed instalment.
Build the schedule month by month: interest on the outstanding balance, the rest of the EMI repays principal.
Any prepayment is deducted from the balance straight away, so later interest falls and the loan closes earlier.

Practical Applications

Checking affordability before applying for a home loan.
Comparing car-loan offers from dealers and banks.
Deciding whether to prepay a loan or invest the surplus.

Example 1: ₹50 lakh home loan, 8.5%, 20 years

A typical home loan with no prepayment.

Inputs

Loan type: Home loan · Loan amount (₹): 5000000 · Interest rate (% p.a.): 8.5 · Tenure (years): 20

= entered

Step 1

r = 8.5 / 12 / 100 = 0.007083

Step 2

n = 20 × 12 = 240 months

Step 3

(1 + r)^n = 5.441243

Step 4

EMI = 50,00,000 × 0.007083 × 5.4412 / (5.4412 − 1) = ₹43,391.16

Monthly EMI

Result

= ₹43,391.16

Example 2: Same loan with ₹5,000 extra each month

Shows the interest and months saved by a small monthly prepayment.

Inputs

Loan type: Home loan · Loan amount (₹): 5000000 · Interest rate (% p.a.): 8.5 · Tenure (years): 20 · Extra prepayment every month (₹): 5000

= entered

Step 1

r = 8.5 / 12 / 100 = 0.007083

Step 2

n = 20 × 12 = 240 months

Step 3

(1 + r)^n = 5.441243

Step 4

EMI = 50,00,000 × 0.007083 × 5.4412 / (5.4412 − 1) = ₹43,391.16

Step 5

Prepayments are subtracted from the balance in the month paid; the EMI stays the same, so the loan ends sooner.

Monthly EMI

Result

= ₹43,391.16

How it's calculated & sources

Frequently Asked Questions

How is EMI calculated in India?

Banks use EMI = P × r × (1+r)^n / ((1+r)^n − 1) on a monthly reducing balance, where r is the annual rate divided by 1,200 and n is the number of months.

Is prepaying a home loan worth it?

Prepayment reduces the outstanding principal immediately, so every future month carries less interest. Early in the tenure, even small prepayments save a large amount of interest. RBI rules bar prepayment penalties on floating-rate loans to individuals.

Does prepayment reduce EMI or tenure?

This calculator keeps the EMI fixed and shortens the tenure, which saves the most interest. Most banks also let you choose a lower EMI instead.

Why is the interest part so high in early EMIs?

Interest is charged on the outstanding balance, which is largest at the start. As principal is repaid, the interest share of each EMI falls.

Do car and personal loans use the same formula?

Yes. They are reducing-balance loans too; only the rate (often 9–16% for personal loans) and the shorter tenure differ. Flat-rate offers must be converted to a reducing rate to compare.