Business
EMI Calculator
Work out the monthly instalment for a home, car, education or personal loan, see how much of the total goes to interest, and follow the balance year by year.
The yearly rate quoted by the lender.
How EMI is calculated
An EMI (equated monthly instalment) is the same amount every month. Early payments are mostly interest; later ones are mostly principal, because interest is charged on the balance still owed (a reducing balance).
EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)
P = loan amount, r = yearly rate ÷ 12 ÷ 100, n = number of months.
Example
- Loan
- ₹10,00,000
- Rate
- 8.5% a year (0.7083% a month)
- Tenure
- 20 years (240 months)
- EMI
- ₹8,678
- Total interest
- ₹10,82,776
Tenure versus total interest
A longer tenure lowers the EMI but raises the total interest sharply. For the same ₹10 lakh loan at 8.5%:
| Tenure | EMI | Total interest |
|---|---|---|
| 5 years | ₹20,517 | ₹2,30,992 |
| 10 years | ₹12,399 | ₹4,87,828 |
| 15 years | ₹9,847 | ₹7,72,531 |
| 20 years | ₹8,678 | ₹10,82,776 |
Common mistakes
Comparing EMIs, not total cost
A lower EMI over more years usually costs far more. Compare total interest, and fees, across offers.
Confusing flat and reducing rates
Some lenders quote a “flat” rate on the original amount. Over three years, a 10% flat rate costs about as much as an 18% reducing rate. This calculator uses the reducing balance, which is how most home, car and personal loans work.
Forgetting processing fees and insurance
These add to the real cost of the loan but are not part of the EMI.
Frequently asked questions
How is EMI calculated?
What is the EMI for a ₹10 lakh loan?
Does a longer tenure save money?
Does this include processing fees?
Last reviewed 4 October 2026. This tool runs in your browser; nothing you enter is stored or sent to Boostlix.