Loan EMI Calculator
Calculate monthly EMI for home, car, personal loans • Compare options easily
General Loan Calculator
Calculate EMI for personal loans, education loans, or any loan type
How to Use This EMI Calculator
Our EMI calculator helps you calculate monthly installments for any type of loan - home loans, car loans, personal loans, education loans, or business loans. Simply select your loan type, enter the loan amount (or property/car price with down payment), interest rate, and tenure in years and months. The calculator instantly shows your monthly EMI, total interest payable, and overall loan cost.
Perfect for comparing loan offers from different banks, determining affordability before applying, planning your monthly budget, or understanding the true cost of borrowing. The calculator provides a visual breakdown showing what percentage of your total payment goes toward principal versus interest.
Why Use Our EMI Calculator?
Accurate Calculations: Uses the standard EMI formula to provide precise monthly payment amounts matching what banks calculate.
Multiple Loan Types: Dedicated calculators for home loans, car loans, and general personal loans with relevant fields for each.
Total Cost Visibility: See not just your EMI but also total interest payable and overall loan cost over the entire tenure.
Visual Breakdown: Interactive chart showing the proportion of principal versus interest in your total payment.
Flexible Tenure: Enter loan tenure in both years and months for precise calculation matching actual loan terms.
Compare Options: Quickly test different scenarios - higher down payment, longer tenure, or lower interest rates to find the best option.
Budget Planning: Determine if the monthly EMI fits your budget before committing to a loan.
Free & Private: No registration required, all calculations happen in your browser, no data stored or shared.
Key Features
- ✓Calculate EMI for home, car, and personal loans
- ✓Automatic loan amount calculation from property/car price
- ✓Support for decimal interest rates (e.g., 8.5%, 10.25%)
- ✓Flexible tenure input in years and months
- ✓Total interest and payment breakdown
- ✓Visual principal vs interest chart
- ✓Real-time calculation as you type
- ✓Share results via text or social media
- ✓Indian number format with commas
- ✓Mobile-friendly responsive design
- ✓Works offline once loaded
- ✓100% free, no ads, no registration
Understanding the EMI Formula
EMI Calculation Formula:
EMI = [P × R × (1+R)^N] / [(1+R)^N - 1]
P = Principal loan amount
R = Monthly interest rate (Annual rate ÷ 12 ÷ 100)
N = Total number of monthly installments (tenure in months)
Example Calculation: For a loan of ₹10,00,000 at 10% annual interest for 5 years:
• Monthly interest rate (R) = 10 ÷ 12 ÷ 100 = 0.00833
• Number of months (N) = 5 × 12 = 60
• EMI = [10,00,000 × 0.00833 × (1.00833)^60] / [(1.00833)^60 - 1]
• Monthly EMI = ₹21,247
• Total amount payable = ₹21,247 × 60 = ₹12,74,820
• Total interest = ₹12,74,820 - ₹10,00,000 = ₹2,74,820
Types of Loans and Interest Rates
Home Loan / Housing Loan
Loans for purchasing property, construction, or home renovation. Home loans offer the lowest interest rates among all loan types.
Interest Rate: 7.5% - 9.5% per annum
Typical Tenure: 15-30 years (180-360 months)
Loan Amount: Up to 90% of property value (10-20% down payment required)
Tax Benefits: Deduction up to ₹2 lakhs on interest (Section 24) and ₹1.5 lakhs on principal (Section 80C)
Car Loan / Vehicle Loan
Loans for purchasing new or used cars, motorcycles, or commercial vehicles.
Interest Rate: 8.5% - 12% per annum
Typical Tenure: 3-7 years (36-84 months)
Loan Amount: Up to 90% of on-road vehicle price (10-30% down payment typical)
Note: Interest rates vary based on vehicle type, new vs used, and your credit score
Personal Loan
Unsecured loans for medical emergencies, weddings, education, debt consolidation, or any personal need.
Interest Rate: 10.5% - 24% per annum
Typical Tenure: 1-5 years (12-60 months)
Loan Amount: ₹50,000 to ₹40 lakhs (based on income and credit score)
Processing: Quick approval, minimal documentation, no collateral required
Education Loan
Loans for higher education in India or abroad, covering tuition, accommodation, and living expenses.
Interest Rate: 8% - 15% per annum
Typical Tenure: 5-15 years (repayment after course completion + moratorium period)
Loan Amount: Up to ₹1.5 crores for study abroad
Tax Benefits: Interest deduction under Section 80E (no upper limit)
Business Loan
Loans for starting or expanding a business, working capital, equipment purchase, or business operations.
Interest Rate: 11% - 20% per annum
Typical Tenure: 1-10 years
Loan Amount: ₹1 lakh to ₹50 crores (based on business vintage and revenue)
Common Use Cases
Home Purchase Planning: Calculate affordable property price based on your monthly budget and available down payment using the home loan calculator.
Car Affordability: Determine if you can afford your dream car by checking monthly EMI with different down payment scenarios using the car loan calculator.
Loan Comparison: Compare offers from multiple banks or NBFCs by entering different interest rates to find the cheapest loan option.
Pre-Approval Budget: Know your exact monthly commitment before applying for a loan to ensure it fits your income and expenses.
Refinancing Decision: Calculate if refinancing your existing loan at a lower interest rate will save money after considering processing fees.
Tenure Optimization: Compare short tenure (lower total interest) vs long tenure (lower monthly EMI) to choose what works best for you.
Down Payment Strategy: See how increasing your down payment reduces both EMI and total interest payable over the loan tenure.
Prepayment Planning: Calculate current loan details to plan partial prepayments that can significantly reduce interest burden.
How to Reduce Your EMI
- 1.Increase Down Payment: Higher down payment means lower principal, directly reducing your EMI. Aim for at least 20% down payment for home loans.
- 2.Choose Longer Tenure: Extending loan tenure reduces monthly EMI but increases total interest. Use this option if you need lower monthly payments.
- 3.Negotiate Interest Rates: Compare offers from multiple lenders. Even 0.5% lower rate can save lakhs over a long tenure.
- 4.Improve Credit Score: A higher CIBIL score (750+) qualifies you for lower interest rates, directly reducing your EMI.
- 5.Make Prepayments: Pay extra toward principal whenever possible. Most banks allow prepayment without penalty on floating rate loans.
- 6.Refinance Your Loan: If interest rates have dropped, consider refinancing (balance transfer) to a cheaper loan.
- 7.Add a Co-Applicant: Having a co-borrower with good income can improve loan terms and reduce interest rates.
- 8.Choose Right Loan Type: Home loans have lower rates than personal loans. If possible, prefer secured loans over unsecured ones.
Fixed vs Floating Interest Rates
Fixed Interest Rate: The interest rate remains constant throughout the loan tenure. Your EMI stays the same from first month to last month, making budgeting easier. Fixed rates are typically 1-2.5% higher than floating rates initially.
Advantages: Predictable payments, protection from rate hikes, easier financial planning, no surprise increases.
Disadvantages: No benefit if market rates fall, higher initial rates, less flexibility.
Floating Interest Rate: The interest rate fluctuates based on market conditions and RBI policy rates. Your EMI can increase or decrease during the loan tenure. Most home loans in India are on floating rates.
Advantages: Lower initial rates, benefit when interest rates fall, can switch to fixed rate later.
Disadvantages: EMI uncertainty, can increase significantly if rates rise, difficult to budget long-term.
Recommendation: Floating rates are generally better for long-tenure loans like home loans, as rates tend to decrease over time. Fixed rates work well for short-tenure loans or if you expect rates to rise significantly.
EMI to Income Ratio Guidelines
| EMI / Income Ratio | Financial Health | Recommendation |
|---|---|---|
| Below 30% | Excellent | Comfortable repayment, room for savings and emergencies |
| 30% - 40% | Good | Manageable, maintain emergency fund |
| 40% - 50% | Moderate | Tight budget, avoid additional loans |
| 50% - 60% | Strained | Financial stress, consider prepayment or refinancing |
| Above 60% | Risky | High default risk, restructure loans immediately |
Example: If your monthly income is ₹50,000 and EMI is ₹15,000, your ratio is 30% (acceptable). Banks typically approve loans where total EMI doesn't exceed 50% of income.
Loan Eligibility Criteria
Age: Typically 21-65 years. Younger applicants get longer tenure options.
Income: Minimum monthly income varies by lender (₹15,000 - ₹25,000 for personal loans, higher for home loans). Stable income source required.
Employment: Salaried employees need 2+ years work experience. Self-employed need 3+ years business vintage with profit.
Credit Score (CIBIL): Minimum 650 for loan approval, 750+ for best interest rates. Score above 800 gets premium rates.
Debt-to-Income Ratio: Total EMI (all loans) shouldn't exceed 50% of monthly income for new loan approval.
Down Payment: 10-20% for home loans, 10-30% for car loans. Higher down payment improves approval chances and reduces interest.
Documentation: ID proof, address proof, income proof (salary slips/ITR), bank statements, employment proof required.
Property Documents: For home loans - sale deed, NOC, approved building plans, property tax receipts, encumbrance certificate.
Tax Benefits on Home Loans
Section 24 (Interest Deduction): Claim deduction up to ₹2,00,000 per year on home loan interest for self-occupied property. No upper limit for let-out property.
Section 80C (Principal Deduction): Claim deduction up to ₹1,50,000 per year on principal repayment. This is part of the overall ₹1.5 lakh limit under Section 80C.
Section 80EE (Additional Interest): First-time home buyers can claim additional ₹50,000 deduction on interest for loans up to ₹35 lakhs for properties valued up to ₹50 lakhs.
Section 80EEA: Additional ₹1,50,000 deduction on interest for affordable housing (property value up to ₹45 lakhs, loan sanctioned between April 2019 - March 2022).
Stamp Duty and Registration: Deduction under Section 80C for stamp duty and registration charges in the year of payment (within overall ₹1.5 lakh limit).
Joint Home Loan: Each co-borrower can claim separate deductions, effectively doubling the tax benefit for couples.
Note: Tax laws change periodically. Consult a tax advisor for current regulations and eligibility.
Prepayment and Foreclosure
What is Prepayment? Paying extra money toward your loan principal before the scheduled EMI date. This reduces your outstanding principal and saves interest.
Partial Prepayment: Pay lump sum amounts periodically while continuing regular EMIs. You can either reduce EMI amount or reduce tenure.
Full Prepayment (Foreclosure): Paying the entire outstanding amount at once to close the loan. Most beneficial if you have windfall gains.
Prepayment Charges:
• Floating rate loans: RBI mandates zero prepayment charges for home loans
• Fixed rate loans: Banks can charge 2-5% prepayment penalty
• Personal loans: Usually 2-6% prepayment charges
• Car loans: Typically 4-6% foreclosure charges
Prepayment Strategy: Best done in the first 5-7 years when interest component is highest. Even ₹10,000-50,000 prepayment annually can save lakhs in interest over 20 years.
Example: ₹50 lakh home loan at 9% for 20 years. Regular EMI = ₹44,986. Prepaying ₹50,000 annually saves ₹14.7 lakhs in interest and closes loan 4 years earlier!
Top Banks and Their Current Interest Rates (2026)
Note: Interest rates are indicative and change frequently based on RBI policy and lender discretion. Always check current rates before applying.
Home Loans:
• SBI, HDFC, ICICI: 8.5% - 9.5%
• Axis, Kotak, PNB: 8.75% - 9.75%
• LIC Housing, DHFL: 8.25% - 9.25%
Car Loans:
• SBI, HDFC, ICICI: 8.7% - 11%
• Bajaj Finserv, Tata Capital: 9.5% - 12%
Personal Loans:
• HDFC, ICICI, SBI: 10.5% - 21%
• Bajaj Finserv: 11% - 22%
• NBFCs: 12% - 24%
Rate Factors: Your actual rate depends on credit score, income, employment type, loan amount, tenure, and relationship with bank. Premium customers get 0.5-1% lower rates.
Common Loan Mistakes to Avoid
- ✗Not Comparing Offers: Don't accept the first loan offer. Compare at least 3-5 lenders for interest rates, processing fees, and prepayment terms.
- ✗Ignoring Hidden Charges: Processing fees, documentation charges, insurance, and late payment penalties can add significantly to loan cost.
- ✗Maxing Out Eligibility: Just because you're eligible for ₹50 lakhs doesn't mean you should borrow that much. Keep EMI below 40% of income.
- ✗Choosing Longest Tenure: While it reduces EMI, longer tenure means paying 2-3x more in total interest over the loan life.
- ✗No Emergency Fund: Don't empty all savings for down payment. Maintain 6-12 months expenses as emergency fund.
- ✗Ignoring Insurance: Term insurance and health insurance are crucial when you have loan obligations. Don't burden family with loan in case of emergency.
- ✗Missing EMI Payments: Even one missed payment damages credit score. Set up auto-debit to never miss EMI dates.
- ✗Not Reading Fine Print: Understand prepayment clauses, rate revision terms, foreclosure charges, and default penalties before signing.
Frequently Asked Questions
How is EMI calculated?
EMI is calculated using the formula: [P × R × (1+R)^N] / [(1+R)^N-1], where P is principal, R is monthly interest rate (annual rate ÷ 12 ÷ 100), and N is tenure in months. Our calculator does this automatically for accurate results.
What is a good EMI to income ratio?
Financial experts recommend keeping total EMI below 40-50% of monthly income. Below 30% is excellent, 30-40% is good, 40-50% is acceptable, and above 50% is risky. This ensures you have enough for living expenses and savings.
Should I choose short or long loan tenure?
Short tenure means higher EMI but much lower total interest. Long tenure means lower EMI but significantly higher total cost. Choose based on your monthly budget - if EMI is comfortable at 40% income, prefer shorter tenure to save on interest.
Can I prepay my loan to reduce EMI?
Yes, prepaying reduces outstanding principal. You can either reduce EMI amount (keeping tenure same) or reduce tenure (keeping EMI same). Most banks allow free prepayment on floating rate home loans. Check for prepayment charges on other loan types.
What happens if I miss an EMI payment?
Missing EMI leads to late payment charges (typically ₹500-1000), damages your credit score, and after 90 days the loan becomes NPA (Non-Performing Asset). Banks can initiate legal action and seize collateral. Always inform bank in advance if facing payment difficulty.
Is EMI same every month?
For fixed rate loans, EMI remains constant. For floating rate loans, EMI can change when interest rates change (typically reviewed quarterly or annually). In early years, most EMI goes toward interest; in later years, more goes toward principal.
How does down payment affect EMI?
Higher down payment = lower loan amount = lower EMI. For example, ₹50 lakh property with ₹10 lakh down payment means ₹40 lakh loan. With ₹15 lakh down payment, loan reduces to ₹35 lakh, reducing EMI by about 12.5%.
Can I get a home loan without a job?
Salaried employment helps, but self-employed individuals, business owners, and freelancers can get loans by showing income tax returns, business financial statements, and bank statements proving regular income. Requirements are stricter without salaried job.
What is the difference between EMI and interest?
EMI is the total monthly payment (principal + interest). In early months, interest is the major component. As principal reduces, interest reduces and principal component increases. Use amortization schedule to see exact breakdown for each month.
How can I improve my loan eligibility?
Improve CIBIL score to 750+, increase income, add co-applicant, reduce existing EMIs, maintain steady employment, save for larger down payment, maintain good banking relationship, and keep debt-to-income ratio below 40%.