An EMI, or Equated Monthly Instalment, is the fixed amount you pay every month towards repaying a loan — combining both principal and interest — until the loan is fully repaid. Whether you're evaluating a home loan, car loan, or personal loan offer, knowing your exact EMI upfront helps you plan your monthly budget and compare offers from different lenders.
EMI is calculated using the reducing-balance method: EMI = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1), where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the total number of monthly instalments. In the early months of a loan, a larger portion of your EMI goes towards interest; as the loan matures, more of it goes towards principal repayment — this is why loan amortisation schedules show a gradually reducing interest component over time.
This calculator gives you your monthly EMI, total interest payable over the loan tenure, and the total amount repayable, so you can see the full cost of borrowing before you commit.
Most lenders let you choose — prepayment can either reduce your EMI while keeping tenure the same, or reduce your tenure while keeping EMI the same. Reducing tenure typically saves you more on total interest.
Yes, under the Old Tax Regime, home loan interest is deductible under Section 24(b) up to ₹2 lakh per year for a self-occupied property, and principal repayment qualifies under Section 80C.
Because interest is charged on the outstanding balance every month over the full tenure — longer tenures reduce your EMI but significantly increase total interest paid.
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