EMI Calculator
Calculate monthly installments for home, car, and personal loans
Home Loan Rates
8.5% - 12% p.a.
Car Loan Rates
7.5% - 15% p.a.
Personal Loan Rates
10% - 24% p.a.
Range: ₹1L - ₹10Cr | Current rate: 8.5% - 12%
Typical range: 8.5% - 12%
Maximum tenure: 30 years
An EMI (Equated Monthly Installment) Calculator is a financial tool that helps you determine the monthly payment amount for any loan. Whether you're planning to buy a home, car, or need funds for personal expenses, our EMI calculator provides accurate calculations to help you plan your finances effectively.
EMI is the fixed amount you pay to the lender every month until the loan is fully repaid. It consists of both principal and interest components, with the ratio changing over time. Initially, a larger portion goes toward interest, and gradually more goes toward the principal.
EMI Formula
EMI = P × r × (1 + r)^n / ((1 + r)^n - 1)
Where:
• P = Principal loan amount
• r = Monthly interest rate (annual rate ÷ 12)
• n = Total number of monthly installments
Example Calculation
Loan Amount: ₹10,00,000
Interest Rate: 9.5% per annum
Tenure: 15 years (180 months)
Monthly EMI: ₹10,442
Total Payment Breakdown
Total Amount Paid: ₹18,79,560
Principal: ₹10,00,000 (53.2%)
Interest: ₹8,79,560 (46.8%)
Interest Burden: ₹8,79,560
Home Loans
For purchasing or constructing residential properties
Key Features
- • Interest rates: 8.5% - 12% p.a.
- • Maximum tenure: up to 30 years
- • Loan amount: up to ₹10 crores
- • LTV ratio: up to 90%
- • Processing fee: 0.5% - 1% of loan amount
Tax Benefits
- • Principal: ₹1.5L under Section 80C
- • Interest: ₹2L under Section 24(b)
- • First-time buyers: Additional ₹50K
- • Stamp duty & registration fee deduction
Reduce EMI Amount
- • Increase loan tenure: Longer tenure = Lower EMI
- • Make larger down payment: Reduce principal amount
- • Shop for lower rates: Compare different lenders
- • Step-up EMI: Start with lower EMI, increase annually
Reduce Loan Tenure
- • Make prepayments: Reduce principal outstanding
- • Increase EMI amount: Pay more than required EMI
- • Use bonuses wisely: Apply lump sum toward principal
- • Loan refinancing: Switch to lower interest rate
Interest Savings Tips
- • Choose shorter tenure: Pay less total interest
- • Negotiate interest rates: Good credit score helps
- • Prepayment strategy: Save significant interest
- • Balance transfer: Switch to lower rate lender
Tax Planning
- • Home loan benefits: Section 80C & 24(b)
- • Joint loan advantages: Double tax benefits
- • Timing of purchases: Maximize deductions
- • Documentation: Keep all payment proofs
Loan amortization refers to the process of paying off debt through regular payments over time. Each EMI payment consists of two components: principal repayment and interest payment. The proportion of these components changes throughout the loan tenure.
Early Years
Interest component is higher as outstanding principal is maximum
Middle Years
Balanced split as outstanding principal reduces gradually
Final Years
Principal component dominates as outstanding amount is low
Amortization Insights
- • Prepayments in early years save more interest
- • Interest deduction is higher in initial years
- • Principal repayment accelerates over time
- • Total interest paid reduces with shorter tenure
What is the difference between EMI and Simple Interest?
EMI uses compound interest and includes both principal and interest in fixed monthly payments. Simple interest calculates interest only on the principal amount without compounding effects.
Can I change my EMI amount during the loan tenure?
Some lenders offer flexible EMI options like step-up or step-down EMIs. You can also prepay to reduce tenure or increase EMI amount voluntarily, but reducing EMI typically requires loan restructuring.
How does prepayment affect my EMI?
Prepayment reduces the outstanding principal. You can either keep the same EMI and reduce tenure, or reduce the EMI amount for the same tenure. Most lenders allow up to 25% prepayment annually without charges.
What happens if I miss an EMI payment?
Missing EMI payments can result in late payment charges, negative impact on credit score, and in extreme cases, asset seizure. Most lenders offer a grace period of 15-30 days before marking it as default.
Is it better to choose longer or shorter loan tenure?
Shorter tenure means higher EMI but lower total interest. Longer tenure means lower EMI but higher total interest. Choose based on your monthly cash flow and financial goals.
Can I get tax benefits on all types of loans?
Tax benefits are available primarily on home loans. Car loans and personal loans generally don't offer tax deductions unless used for business purposes.
How is EMI calculated for floating interest rate loans?
For floating rate loans, EMI is recalculated whenever interest rates change. Lenders either adjust the EMI amount or the tenure while keeping the other factor constant.
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