How to use EMI Calculator
An equated monthly instalment is a regular payment towards a loan. It pays both interest and principal. Early payments usually contain more interest because the outstanding balance is larger; later payments repay more principal. Use the monthly schedule to see this change rather than looking at the EMI alone.
Enter the sanctioned loan amount, an annual interest rate and the number of monthly payments. Home, car and personal loans can all use this reducing-balance model. A longer term generally lowers the monthly payment while increasing the total interest at the same rate.
Compare scenarios using the total repayment as well as the monthly EMI. The calculation keeps the rate fixed and assumes the first payment is one month after disbursement. A lender’s floating rate, processing fee, insurance, rounded instalments or daily interest convention can change the amount you actually pay.
The formula
A worked example
Loan amount (₹): 5000000 · Annual interest rate (%): 8.5 · Duration (months): 240
Monthly EMI: ₹43,391.16
Fixed rate, monthly repayment; lender fees and daily interest are excluded.
Questions about this calculation
Can I use this for a home loan?
Yes, for a loan with regular monthly payments and the fixed-rate assumptions shown here. The same model also works for car and personal loans.
What happens at a zero interest rate?
The calculator divides the loan amount by the number of payments.
Does this include bank fees?
No. Fees, insurance, taxes and rate changes are excluded. Ask your lender for its repayment schedule.
Formula checks: 2026-10-08. Assumptions & corrections.