India EMI Calculator

EMI = P × r × (1+r)^n / ((1+r)^n - 1), where P is principal, r is monthly interest rate (annual rate / 12 / 100), n is total number of months. A ₹10 lakh personal loan at 12% over 5 years (60 months): r = 0.01, EMI = ₹22,244. Total payment = ₹13.35 lakh, of which ₹3.35 lakh is interest. Compare to a 15% rate over the same term: EMI ₹23,790, ₹4.27 lakh interest - small rate difference, big lifetime cost.

EMI works for any equated-instalment loan: home loan, car loan, personal loan, education loan. The structure is identical; only the rate, tenure, and use case differ. Home loans typically run 7-9% over 15-30 years; personal loans 11-18% over 1-5 years; car loans 8-12% over 5-7 years; education loans 9-12% over 5-15 years.

Each EMI is the same amount but the split between principal and interest changes. Early EMIs are mostly interest (about 75-80% interest in year 1 for a typical home loan). By year 10 of a 20-year loan, the split is about 50/50. Late EMIs are mostly principal. This is why early prepayments save dramatically more interest than late prepayments.

₹10 lakh prepayment in year 3 of a 20-year ₹50 lakh home loan saves about ₹15-18 lakh in interest. The same ₹10 lakh prepayment in year 15 saves only ₹3-4 lakh in interest. The math heavily rewards early aggressive principal reduction. The [India Home Loan EMI Calculator](/india-home-loan-emi-calculator) handles the home-loan-specific case.

Longer tenure: lower EMI, much higher total interest. ₹10 lakh at 12% over 5 years has EMI ₹22,244 and total interest ₹3.35 lakh. Same ₹10 lakh over 7 years: EMI ₹17,652, interest ₹4.83 lakh. Over 10 years: EMI ₹14,347, interest ₹7.21 lakh.

Pick the shortest tenure your budget allows. Many borrowers default to maximum tenure for the lowest EMI without realising the lifetime cost. A common rule: EMI total (across all loans) should stay under 40% of monthly take-home pay. If shortening tenure pushes that ratio above 40%, take the longer tenure but make voluntary prepayments when you can.

Fixed: rate locked for the loan duration (or a fixed period). Predictable EMI. Usually 0.5-1% higher than starting floating rate. Floating: linked to RLLR (Repo Linked Lending Rate) or MCLR. Resets when RBI changes repo rate. Typically lower starting rate but exposed to rate hikes.

Most home loans in India are floating - the long tenure means fixed-rate guarantee comes at a high premium. Personal loans tend to be fixed because they're short. Car loans are usually fixed too. The 2022-2023 rate cycle (repo rate up 2.5%) increased many home loan EMIs by ₹2-5k/month - factor this into household budgets even if you started at a low rate.