Calculate Equated Monthly Installment (EMI) for Home Loan, Car Loan, Personal Loan, Education Loan, and Business Loan with detailed amortization schedule and interest breakdown
Use our loan comparison feature below to compare different tenure options and find the best fit for your budget.
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An Equated Monthly Installment (EMI) is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. EMIs are used to pay off both interest and principal each month, so that over a specified number of years, the loan is paid off in full[citation:2].
The EMI calculation formula is based on the mathematical principle of amortization. The formula used is:
EMI = [P × R × (1+R)^N] / [(1+R)^N-1]
Where:
For example, if you take a loan of ₹30,00,000 at an annual interest rate of 8.5% for a tenure of 20 years (240 months), the calculation would be:
An amortization schedule is a table that shows the breakdown of each EMI payment into principal and interest components over the entire loan tenure. In the initial years, a larger portion of the EMI goes toward interest payment, while in the later years, a larger portion goes toward principal repayment[citation:4].
Home loans typically have the longest tenures (up to 30 years) and relatively lower interest rates. The EMI for home loans is calculated using reducing balance method, where interest is calculated on the outstanding principal each month[citation:2].
Car loans usually have shorter tenures (3-7 years) and higher interest rates compared to home loans. The EMI remains fixed throughout the tenure unless you opt for a floating rate loan.
Personal loans are unsecured loans with higher interest rates and shorter tenures (1-5 years). The EMI calculation follows the same formula but may include processing fees in the total cost[citation:7].
Education loans often have a moratorium period where only interest needs to be paid. The EMI calculation begins after the moratorium period ends.
Making prepayments or part-payments can significantly reduce your total interest outgo and loan tenure. Our loan prepayment calculator helps you understand the impact of extra payments.
Fixed rate loans have constant EMIs throughout the tenure, while floating rate loans have EMIs that change with market interest rates. Consider your risk appetite when choosing between them.
Transferring your loan to another lender offering lower interest rates can reduce your EMI or shorten your loan tenure. However, consider the balance transfer charges before making a decision.
While EMI is the most common loan repayment method, alternatives include:
Certain loans offer tax benefits on EMI payments:
Disclaimer: This EMI calculator provides estimates based on standard formulas and assumptions. Actual loan terms, interest rates, and EMIs may vary based on the lender's policies, your credit profile, and other factors. Always consult with your financial advisor or lender for exact calculations and terms[citation:2].