An EMI calculator turns a loan amount, annual interest rate and tenure in months into the equated monthly installment (EMI), the fixed amount you repay each month. EMI = P × R × (1 + R)N ÷ ((1 + R)N − 1), where R is the monthly rate and N the tenure in months. A ₹10,00,000 loan at 8.5% for 20 years has an EMI of about ₹8,678, and you pay about ₹10.83 lakh in interest.
The EMI calculator uses the same formula in any currency.
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How to use the EMI calculator
- In the EMI calculator, enter the loan amount, for example 500000.
- Enter the annual interest rate quoted by the lender, for example 10.5.
- Enter the tenure in months: 3 years = 36, 20 years = 240.
- Read the EMI. Multiply it by the number of months for the total payable; subtract the loan amount for the total interest.
The EMI calculator assumes a fixed rate for the whole tenure and no fees. Processing fees and insurance added to the loan change the real cost.
EMI formula and how to calculate EMI
- Monthly rate R = annual rate ÷ 12 ÷ 100. At 8.5%, R = 0.0070833.
- Tenure N in months. 20 years = 240.
- EMI = P × R × (1 + R)N ÷ ((1 + R)N − 1)
- Total payable = EMI × N; total interest = total payable − P
EMI calculator worked example
₹5,00,000 personal loan at 10.5% for 36 months:
- R = 10.5 ÷ 12 ÷ 100 = 0.00875
- EMI ≈ ₹16,251
- Total payable ≈ ₹5,85,044, so interest ≈ ₹85,044
EMI by tenure
₹10,00,000 at 8.5%:
| Tenure | EMI | Total interest |
|---|---|---|
| 5 years (60 months) | ₹20,517 | ₹2,30,992 |
| 10 years (120 months) | ₹12,399 | ₹4,87,828 |
| 15 years (180 months) | ₹9,847 | ₹7,72,531 |
| 20 years (240 months) | ₹8,678 | ₹10,82,776 |
Doubling the tenure from 10 to 20 years lowers the EMI by about 30% but more than doubles the interest.
How much of your EMI is interest?
Early EMIs are mostly interest. On ₹10,00,000 at 8.5% for 20 years, the first 12 EMIs total about ₹1,04,139, of which about ₹84,236 is interest and only ₹19,902 reduces the principal.
Effect of a prepayment
Using the same loan, a ₹1,00,000 prepayment after the first year, keeping the EMI unchanged, shortens the remaining tenure from 228 to about 180 months, around 4 years sooner, and saves roughly ₹3.2 lakh in interest. Under the RBI’s Pre-payment Charges on Loans Directions, 2025, lenders may not charge a prepayment fee on floating-rate loans to individuals for non-business purposes that are sanctioned or renewed from January 1, 2026. For fixed-rate loans, check your loan agreement.
Reducing balance vs flat rate
The EMI formula uses a reducing balance: interest is charged only on what you still owe. Some lenders quote a flat rate, where interest is charged on the original amount for the whole tenure. A flat rate looks lower but costs more. For example, a 10% flat rate on ₹1,00,000 for 3 years costs ₹30,000 in interest, while a 10% reducing-balance rate costs about ₹16,162. Always compare reducing-balance rates or APRs.
When the interest rate changes
On floating-rate loans, a rate change alters either the EMI or the remaining tenure. Under the RBI’s 2023 circular on EMI-based personal loans, lenders must tell you about the impact, let you choose a higher EMI, a longer tenure or a mix, and let you prepay; they may also offer a switch to a fixed rate. A prepayment lowers the outstanding principal, so you can keep the EMI and finish sooner or keep the tenure and pay a lower EMI.
EMI by interest rate
EMI per ₹1,00,000 borrowed, as the EMI calculator works it out, so you can scale to any loan amount:
| Rate | 5 years | 10 years | 15 years | 20 years |
|---|---|---|---|---|
| 7.5% | ₹2,004 | ₹1,187 | ₹927 | ₹806 |
| 8.5% | ₹2,052 | ₹1,240 | ₹985 | ₹868 |
| 9.5% | ₹2,100 | ₹1,294 | ₹1,044 | ₹932 |
| 10.5% | ₹2,149 | ₹1,349 | ₹1,105 | ₹998 |
| 12% | ₹2,224 | ₹1,435 | ₹1,200 | ₹1,101 |
For ₹25 lakh, multiply the row by 25. A 1 percentage point rise on a 20-year loan adds about ₹60 to ₹70 a month per lakh at these rates.
Estimates for education only, not financial advice. Your lender’s figures are final.
Related converters and calculators
Related tools:
- Loan calculator: with amortization schedule
- Mortgage calculator: US home loans
- SIP calculator: prepay or invest
- Compound interest calculator: growth of savings
- Amortization calculator: yearly summary
Sources
The EMI calculator is based on these sources: RBI: Reset of floating interest rate on EMI-based personal loans (2023, updated 2025); RBI: Pre-payment Charges on Loans Directions, 2025; CFPB: What is amortization?.
Questions about this calculator
What is the EMI formula?
EMI = P × R × (1 + R)^N / ((1 + R)^N − 1), where P is the loan amount, R the monthly rate (annual rate ÷ 12 ÷ 100) and N the tenure in months.
What is the EMI on a ₹10 lakh loan?
At 8.5%, about ₹20,517 for 5 years, ₹12,399 for 10 years and ₹8,678 for 20 years.
Does a longer tenure reduce EMI?
Yes, but it increases the total interest you pay, often by a large amount.
Is EMI calculated on a flat or reducing balance?
Standard bank EMIs use a reducing balance, so interest falls as you repay. A flat-rate quote charges interest on the full original amount and costs more.
Can I prepay a floating-rate loan without a fee?
For floating-rate loans to individuals for non-business purposes sanctioned or renewed from January 1, 2026, RBI rules bar prepayment charges.
Check the assumptions and units before relying on a result. Financial, tax and health estimates do not replace advice for your individual circumstances.
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