Short answer
EMI is the fixed monthly payment that clears a loan with interest over its tenure. It is worked out as EMI = P × r × (1 + r)n ÷ [(1 + r)n − 1], where P is the loan amount, r is the yearly rate divided by 12 and by 100, and n is the number of months.
A ₹10 lakh loan at 8.5% for 20 years has an EMI of ₹8,678 and total interest of ₹10,82,776. A ₹50 lakh home loan on the same terms costs ₹43,391 a month. A shorter tenure raises the EMI but cuts the total interest sharply.
How to use this EMI calculator
- Pick the loan typeSearch for home, car, personal, business or education loan. The calculator fills in a typical rate and tenure, which you can change.
- Enter the amount, rate and tenureType the figures or drag the sliders. Switch tenure between years and months for short loans.
- Add the fee or a prepayment if you wantOpen the fee or prepayment option to see the true cost of the loan, or how much interest a lump-sum payment saves.
- Read the result and the scheduleYou get the EMI, total interest, total payable, a chart and a dated schedule by calendar or financial year. Download it as PDF or Excel, or copy a link that opens with your figures filled in.
- Check rate changes and your limitThe rate table shows the EMI if your floating rate rises or falls. The "How much can I borrow?" tab shows the largest loan your income supports.
EMI formula with worked examples
Banks in India charge interest on the reducing balance. Each month, interest is worked out on the loan still outstanding, and the rest of the EMI repays principal. That is why early EMIs are mostly interest and later EMIs are mostly principal.
r = 8.5 ÷ 12 ÷ 100 = 0.007083 and n = 240 months. In the first EMI, ₹35,417 is interest and only ₹7,974 is principal.
EMI ₹43,391 · Total interest ₹54,13,879 · Total payable ₹1,04,13,879
r = 0.007917 and n = 60 months. Interest adds about 26% to the price of the car over five years.
EMI ₹16,801 · Total interest ₹2,08,089 · Total payable ₹10,08,089
r = 0.01 and n = 36 months. A short tenure keeps the interest low even at a higher rate.
EMI ₹9,964 · Total interest ₹58,715 · Total payable ₹3,58,715
EMI per ₹1 lakh at different rates and tenures
Multiply the figure by your loan amount in lakh. For a ₹25 lakh loan at 9% for 20 years, the EMI is 25 × ₹900 = ₹22,500.
| Rate | 1 yr | 2 yrs | 3 yrs | 5 yrs | 7 yrs | 10 yrs | 15 yrs | 20 yrs | 25 yrs | 30 yrs |
|---|---|---|---|---|---|---|---|---|---|---|
| 7% | ₹8,653 | ₹4,477 | ₹3,088 | ₹1,980 | ₹1,509 | ₹1,161 | ₹899 | ₹775 | ₹707 | ₹665 |
| 7.5% | ₹8,676 | ₹4,500 | ₹3,111 | ₹2,004 | ₹1,534 | ₹1,187 | ₹927 | ₹806 | ₹739 | ₹699 |
| 8% | ₹8,699 | ₹4,523 | ₹3,134 | ₹2,028 | ₹1,559 | ₹1,213 | ₹956 | ₹836 | ₹772 | ₹734 |
| 8.5% | ₹8,722 | ₹4,546 | ₹3,157 | ₹2,052 | ₹1,584 | ₹1,240 | ₹985 | ₹868 | ₹805 | ₹769 |
| 9% | ₹8,745 | ₹4,568 | ₹3,180 | ₹2,076 | ₹1,609 | ₹1,267 | ₹1,014 | ₹900 | ₹839 | ₹805 |
| 9.5% | ₹8,768 | ₹4,591 | ₹3,203 | ₹2,100 | ₹1,634 | ₹1,294 | ₹1,044 | ₹932 | ₹874 | ₹841 |
| 10% | ₹8,792 | ₹4,614 | ₹3,227 | ₹2,125 | ₹1,660 | ₹1,322 | ₹1,075 | ₹965 | ₹909 | ₹878 |
| 10.5% | ₹8,815 | ₹4,638 | ₹3,250 | ₹2,149 | ₹1,686 | ₹1,349 | ₹1,105 | ₹998 | ₹944 | ₹915 |
| 11% | ₹8,838 | ₹4,661 | ₹3,274 | ₹2,174 | ₹1,712 | ₹1,378 | ₹1,137 | ₹1,032 | ₹980 | ₹952 |
| 12% | ₹8,885 | ₹4,707 | ₹3,321 | ₹2,224 | ₹1,765 | ₹1,435 | ₹1,200 | ₹1,101 | ₹1,053 | ₹1,029 |
| 13% | ₹8,932 | ₹4,754 | ₹3,369 | ₹2,275 | ₹1,819 | ₹1,493 | ₹1,265 | ₹1,172 | ₹1,128 | ₹1,106 |
| 14% | ₹8,979 | ₹4,801 | ₹3,418 | ₹2,327 | ₹1,874 | ₹1,553 | ₹1,332 | ₹1,244 | ₹1,204 | ₹1,185 |
| 16% | ₹9,073 | ₹4,896 | ₹3,516 | ₹2,432 | ₹1,986 | ₹1,675 | ₹1,469 | ₹1,391 | ₹1,359 | ₹1,345 |
| 18% | ₹9,168 | ₹4,992 | ₹3,615 | ₹2,539 | ₹2,102 | ₹1,802 | ₹1,610 | ₹1,543 | ₹1,517 | ₹1,507 |
EMI for common loan amounts
EMIs at 8.5% a year, close to where many home loans are priced after the October 2026 repo rate change. Use the calculator for your exact rate.
| Loan amount | 10 years | 15 years | 20 years | 25 years | 30 years |
|---|---|---|---|---|---|
| ₹10 lakh | ₹12,399 | ₹9,847 | ₹8,678 | ₹8,052 | ₹7,689 |
| ₹20 lakh | ₹24,797 | ₹19,695 | ₹17,356 | ₹16,105 | ₹15,378 |
| ₹25 lakh | ₹30,996 | ₹24,618 | ₹21,696 | ₹20,131 | ₹19,223 |
| ₹30 lakh | ₹37,196 | ₹29,542 | ₹26,035 | ₹24,157 | ₹23,067 |
| ₹40 lakh | ₹49,594 | ₹39,390 | ₹34,713 | ₹32,209 | ₹30,757 |
| ₹50 lakh | ₹61,993 | ₹49,237 | ₹43,391 | ₹40,261 | ₹38,446 |
| ₹75 lakh | ₹92,989 | ₹73,855 | ₹65,087 | ₹60,392 | ₹57,669 |
| ₹1 crore | ₹1,23,986 | ₹98,474 | ₹86,782 | ₹80,523 | ₹76,891 |
Typical interest rates by loan type, October 2026
Indicative ranges for salaried and self-employed borrowers with a good credit score. Your lender's offer depends on your credit score, income, the loan amount and whether the rate is fixed or floating.
| Loan type | Typical rate | Max tenure | Processing fee | Tax benefit |
|---|---|---|---|---|
| Home loan | 7.5%–10% | 30 years | 0.25%–1% | Interest up to ₹2 lakh (Sec 22(2), earlier 24(b)) and principal up to ₹1.5 lakh (Sec 123, earlier 80C), old regime |
| Home loan balance transfer or top-up | 7.75%–10.5% | 30 years | 0.25%–1% | Same as home loan if used for the house |
| Loan against property (LAP) | 9%–12.5% | 20 years | 0.5%–2% | Business expense if used for business |
| Plot or land loan | 8.25%–11% | 20 years | 0.25%–1% | None until a house is built |
| New car loan | 8.5%–11% | 7 years | 0.25%–1% | Business expense if used for business |
| Used car loan | 11%–16% | 5 years | 1%–2.5% | Business expense if used for business |
| Two-wheeler loan | 10%–18% | 4 years | 1%–3% | None for personal use |
| Electric vehicle loan | 8%–12% | 7 years | 0.25%–1% | Sec 132 (earlier 80EEB) only for loans sanctioned 2019–2023 |
| Personal loan | 10.5%–24% | 7 years | 1%–3% | None for personal use |
| Business loan (unsecured) | 14%–24% | 5 years | 1%–3% | Business expense, both regimes |
| MSME secured or Mudra loan | 9%–14% | 7 years | 0%–1% | Business expense, both regimes |
| Education loan | 8.5%–13% | 15 years | 0%–1% | Full interest for 8 years (Sec 129, earlier 80E), old regime |
| Gold loan | 9%–18% | 3 years | 0.25%–1% | None for personal use |
Flat rate vs reducing balance rate
A flat rate charges interest on the full loan for the whole tenure, even as you repay it. A reducing balance rate charges interest only on what is still outstanding. The same number means very different costs.
| ₹1 lakh for 3 years | Flat 10% | Reducing 10% |
|---|---|---|
| Monthly EMI | ₹3,611 | ₹3,227 |
| Total interest | ₹30,000 | ₹16,162 |
| Equivalent reducing rate | About 17.9% | 10% |
Consumer durable loans, some two-wheeler loans and many informal lenders quote flat rates. Ask the lender for the reducing balance rate or the annual percentage rate (APR) in the Key Fact Statement before you sign. RBI requires banks and NBFCs to give a Key Fact Statement for retail and MSME loans.
How part-prepayment reduces your interest
Any lump sum you pay goes straight to principal, so every later EMI carries less interest. The earlier you prepay, the more you save.
Keep the EMI and cut the tenure: the loan closes 36 months early and saves ₹10,69,153 in interest.
Keep the tenure and cut the EMI: the EMI falls from ₹43,391 to ₹38,467 and the interest saving is ₹3,86,266.
Cutting the tenure saves almost three times as much interest.
Banks and NBFCs cannot charge a prepayment or foreclosure penalty on floating-rate loans taken by individuals for non-business purposes. For loans sanctioned or renewed from 1 January 2026, this also covers floating-rate business loans of individuals and micro and small enterprises, within limits set by RBI. Fixed-rate loans can still carry a charge, so check your loan agreement.
How the October 2026 repo rate hike affects your EMI
RBI raised the repo rate by 0.25% from 5.25% to 5.50% on 7 October 2026. Most floating home loans are linked to the repo rate, so their rate goes up by the same 0.25% at the next reset date in your loan agreement.
- A ₹50 lakh, 20-year loan moving from 8.5% to 8.75% adds about ₹795 to the EMI.
- A ₹30 lakh, 20-year loan on the same change adds about ₹477.
- Many banks keep the EMI the same and extend the tenure instead. That costs more interest overall, so ask your lender which option applies and choose a higher EMI if you can.
Tax benefits on loan EMIs
The Income-tax Act, 2025 applies from 1 April 2026. The deductions below keep their earlier limits but have new section numbers.
- Home loan interest: up to ₹2 lakh a year for a self-occupied house under Section 22(2) (earlier Section 24(b)), only in the old tax regime. For a let-out house, interest is deductible against rent in both regimes.
- Home loan principal: up to ₹1.5 lakh a year under Section 123 (earlier Section 80C), shared with PF, PPF and insurance, only in the old regime.
- Education loan interest: the full interest, with no cap, for up to 8 years under Section 129 (earlier Section 80E), only in the old regime.
- Business loan interest: deductible as a business expense when the money is used for the business, under either regime.
- Personal and car loans: no deduction for personal use. If the money funds a business or a house, interest can be claimed under that head.
Compare both regimes before you choose. If your home loan interest and other deductions are small, the new regime's lower rates can still leave you with less tax.
What happens if you miss an EMI
- The lender charges a bounce charge and a penal charge. Since 2024, RBI rules allow only a fixed penal charge, not penal interest added to your rate.
- The missed payment is reported to credit bureaus such as CIBIL, which lowers your credit score.
- After 90 days overdue, the loan is classified as a non-performing asset and the lender can start recovery.
If you expect trouble, talk to the lender before the due date. They may allow a short moratorium, a tenure extension or restructuring.
Frequently asked questions
How is EMI calculated?
EMI = P × r × (1 + r)^n ÷ [(1 + r)^n − 1], where P is the loan amount, r is the monthly rate (yearly rate ÷ 12 ÷ 100) and n is the tenure in months. For ₹10 lakh at 8.5% for 20 years, the EMI is ₹8,678.
What is the EMI for a ₹50 lakh home loan?
At 8.5% a year, the EMI is ₹49,237 for 15 years, ₹43,391 for 20 years and ₹38,446 for 30 years. Each 0.25% rise in the rate adds roughly ₹800 to the 20-year EMI.
What is the EMI per ₹1 lakh?
At 8.5%, it is ₹868 for 20 years, ₹1,240 for 10 years and ₹2,052 for 5 years. At 12% for 5 years it is ₹2,224. Multiply by your loan amount in lakh.
Does a longer tenure reduce the total interest?
No. A longer tenure lowers the EMI but increases the total interest. On ₹50 lakh at 8.5%, total interest is ₹38,62,656 over 15 years and ₹88,40,443 over 30 years.
How does the October 2026 repo rate hike affect my EMI?
RBI raised the repo rate from 5.25% to 5.50% on 7 October 2026. Repo-linked floating loans go up by 0.25% at the next reset date. On a ₹50 lakh, 20-year loan, that adds about ₹795 a month, unless the bank extends the tenure instead.
Should I use a prepayment to cut the tenure or the EMI?
Cutting the tenure saves more. A ₹5 lakh prepayment after 5 years on a ₹50 lakh, 8.5%, 20-year loan saves ₹10.69 lakh in interest if you keep the EMI, and ₹3.86 lakh if you lower the EMI.
What is the difference between flat and reducing balance rates?
A flat rate charges interest on the full loan for the whole tenure. A reducing rate charges it only on the outstanding balance. A 10% flat rate over 3 years costs about the same as a 17.9% reducing rate.
Can I claim tax deduction on my home loan EMI?
In the old tax regime, yes. Interest up to ₹2 lakh a year is deductible under Section 22(2) of the Income-tax Act, 2025 (earlier Section 24(b)), and principal up to ₹1.5 lakh under Section 123 (earlier Section 80C). In the new regime, there is no deduction for a self-occupied house.
Is there a penalty for prepaying a home loan?
Not on a floating-rate loan taken by an individual for a non-business purpose. RBI does not allow banks or NBFCs to charge foreclosure or prepayment charges on such loans. Fixed-rate loans can carry a charge set out in the loan agreement.
What is a safe EMI-to-income ratio?
Keep all your EMIs within 40% to 50% of your net monthly income. Lenders call this the FOIR. On a ₹1 lakh monthly income with no other loans, a 50% limit allows an EMI of ₹50,000, which supports a loan of about ₹57.6 lakh at 8.5% for 20 years.
Is GST charged on the loan processing fee?
Yes. 18% GST applies to the processing fee and other charges, but not to the interest or the EMI. A 0.5% fee on a ₹50 lakh loan is ₹25,000 plus ₹4,500 GST.
What is EMI in advance and EMI in arrears?
In arrears, the first EMI is paid a month after the loan is disbursed. In advance, the first EMI is paid on the day of disbursal, which car dealers often use. On an ₹8 lakh car loan at 9.5% for 5 years, the EMI is ₹16,801 in arrears and ₹16,670 in advance, at the same interest rate, because you start repaying a month earlier.
Can I download my EMI schedule as PDF or Excel?
Yes. Below the schedule, use Download PDF or Download Excel. Copy share link creates a link that opens this calculator with your loan amount, rate, tenure, first EMI month and prepayment already filled in.
What happens if I miss an EMI?
You pay a bounce charge and a penal charge, and the delay is reported to credit bureaus, which lowers your score. If an EMI stays unpaid for over 90 days, the loan becomes a non-performing asset and the lender can start recovery.