Find Out Exactly What Your Loan Will Cost You Every Month
Enter your loan amount, interest rate, and repayment period – this EMI calculator instantly shows your monthly instalment (EMI), the total interest you will pay, and a year-by-year amortisation schedule so you can see how your outstanding balance shrinks over time. Works for home loans, car loans, personal loans, and education loans.
How to Use This EMI Calculator
- Loan amount (₹): Enter the total amount you want to borrow – for example, ₹30,00,000 for a home loan.
- Annual interest rate (%): Use the rate your bank has quoted. For home loans this is usually between 8.5% and 10.5% in 2025.
- Loan tenure: Enter how many years (or months) you want to repay the loan.
- Hit Calculate: Your monthly EMI, total amount payable, and total interest charged appear instantly. Scroll down to see the full amortisation table.
You can change any value and the result updates on the spot – great for comparing a 15-year vs a 20-year home loan, or checking what happens if the rate moves by 0.5%.
Worked Example – ₹25 Lakh Home Loan at 9% for 20 Years
Let us put in real numbers so you can check the calculator makes sense.
- Loan amount: ₹25,00,000
- Interest rate: 9% per annum
- Tenure: 20 years (240 months)
The calculator gives:
| Output | Amount |
|---|---|
| Monthly EMI | ₹22,493 |
| Total amount paid (20 yrs) | ₹53,98,320 |
| Total interest paid | ₹28,98,320 |
| Principal repaid | ₹25,00,000 |
So for every ₹1 lakh you borrow at 9% over 20 years, you pay back roughly ₹2.16 lakh in total. Reducing the tenure to 15 years raises the EMI to about ₹25,357 but saves you nearly ₹8.5 lakh in interest – that is the trade-off this tool helps you see clearly.
How EMI Is Calculated – The Formula Explained
EMI stands for Equated Monthly Instalment. Banks use a standard formula based on reducing-balance (compound) interest – meaning each month's interest is charged only on whatever principal is still outstanding, not on the original loan amount.
The formula is:
EMI = P × r × (1 + r)^n
───────────────────
(1 + r)^n – 1
Where:
P = Principal loan amount (e.g. ₹25,00,000)
r = Monthly interest rate = Annual rate ÷ 12 ÷ 100
(e.g. 9% per year → r = 9 ÷ 12 ÷ 100 = 0.0075)
n = Total number of monthly instalments
(e.g. 20 years × 12 = 240)Plugging in the example: P = 25,00,000 · r = 0.0075 · n = 240 → EMI ≈ ₹22,493. Every bank in India uses this same reducing-balance method for retail loans.
What Is an Amortisation Schedule?
The amortisation schedule (the table below the chart) shows you how each EMI is split between interest and principal repayment – month by month or year by year.
- Early EMIs: Most of your payment goes toward interest, very little toward reducing the loan. In the example above, nearly ₹18,750 of the very first EMI is interest and only ₹3,743 reduces the principal.
- Later EMIs: As the outstanding balance falls, interest shrinks and more of each EMI chips away at the principal.
- Outstanding balance column: Shows exactly how much you still owe after each payment – useful if you are planning a part-prepayment.
This is why making even one or two lump-sum prepayments early in the loan life saves far more interest than the same payment made in Year 15.
Current Loan Rate Landscape – FY 2025-26
These are typical ranges as of mid-2025. Your actual rate depends on your credit score, lender, and loan type. Always confirm with your bank before signing.
| Loan Type | Typical Rate Range (2025) | Common Tenure |
|---|---|---|
| Home Loan | 8.50% – 10.50% | 10 – 30 years |
| Car Loan | 8.75% – 12.00% | 1 – 7 years |
| Personal Loan | 10.50% – 24.00% | 1 – 5 years |
| Education Loan | 8.00% – 15.00% | 5 – 15 years |
The Reserve Bank of India (RBI) sets the repo rate which influences the base rates all banks use. When the repo rate changes, floating-rate loan EMIs change too.
Home Loan Tax Benefit (Section 24 & 80C) – AY 2026-27
- Section 24(b): Deduction of up to ₹2 lakh per year on home loan interest (self-occupied property) under the old tax regime.
- Section 80C: Principal repayment qualifies for deduction up to the ₹1.5 lakh annual limit (shared with other 80C investments).
- These deductions are available only if you opt for the old tax regime. Under the new default regime (FY 2025-26 onwards), these specific deductions are not available.
Source: Income Tax Department (incometax.gov.in).
Practical Tips to Lower Your EMI or Total Interest
- Make a bigger down payment. Borrowing ₹20 lakh instead of ₹25 lakh saves you roughly ₹5.8 lakh in interest over 20 years at 9%.
- Choose a shorter tenure if you can afford the higher EMI. Use the calculator to see exactly how much you save – it is usually a large number.
- Prepay whenever you get a bonus or windfall. Even ₹50,000 extra in Year 2 can cut months off your loan and save well over ₹1 lakh in interest.
- Negotiate a lower rate. A 0.25% rate reduction on a ₹50 lakh home loan over 20 years saves around ₹3 lakh. Use this tool to confirm before negotiating with your bank.
- Watch the processing fee. Banks sometimes charge 0.5%–2% of the loan amount upfront. Factor this into your total cost.
Common Mistakes to Avoid
- Confusing flat rate with reducing rate. Some lenders (especially two-wheeler or consumer durable loans) quote a flat interest rate, which is effectively much higher than a reducing-balance rate. The effective reducing-balance rate is roughly 1.8× the flat rate. This calculator uses the standard reducing-balance method that all banks must use for home and car loans per RBI guidelines.
- Ignoring GST on processing fees. Processing fees attract 18% GST, adding to your upfront cost.
- Forgetting that floating rates change. If you have a floating-rate loan, your EMI or tenure adjusts when the repo rate changes. Use this tool to model different rate scenarios.
Your Data Stays Private
Everything you enter here – loan amount, rate, tenure – is processed entirely in your browser. No figures are sent to any server, stored, or shared with anyone. You can use it freely and confidently.
Bottom line: A few seconds with this loan EMI calculator can save you lakhs of rupees by helping you choose the right loan size, tenure, and prepayment plan – try it with your own numbers right now.