EMI Calculator: Home, Car & Personal Loan EMI
Year-by-year repayment schedule
How EMI is calculated
An equated monthly instalment (EMI) is a fixed payment that covers both interest and part of the principal. Banks use the formula EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly instalments.
In the early years most of each EMI goes towards interest. As the outstanding principal falls, the interest part shrinks and more of each payment reduces the loan. The schedule above shows that shift year by year.
What changes your EMI
- Interest rate: most home loans in India are linked to an external benchmark such as the RBI repo rate. When the repo rate moves, your bank usually changes the tenure rather than the EMI. Try adding 0.25% to see the effect of a rate hike.
- Tenure: a longer tenure lowers the EMI but raises total interest sharply. Compare 15 and 25 years for the same loan.
- Prepayment: paying extra early in the loan cuts interest the most, because that is when the interest share is highest. Banks may not charge prepayment penalties on floating-rate home loans taken by individuals.
This is an estimate for planning only and is not financial advice. Processing fees, insurance and rounding by your lender are not included.