Enter Loan Details

Loan Amount (₹)

₹5,00,000

Annual Interest Rate (%)

8.5%

Loan Tenure (Years)

5 Years

Loan Type

Loan Summary

🏦

Enter loan details and click Calculate

Monthly EMI
—

Principal Amount

—

Total Interest

—

Total Amount Payable

—

Principal Interest

📅 Amortization Schedule (First 12 Months)

Month	EMI (₹)	Principal (₹)	Interest (₹)	Balance (₹)

What is EMI and How is it Calculated?

EMI (Equated Monthly Installment) is a fixed payment made by a borrower to a lender each month on a fixed date. Each EMI includes both principal repayment and interest charges.

EMI Formula

EMI = P × r × (1+r)ⁿ / [(1+r)ⁿ – 1]

Where: P = Principal loan amount | r = Monthly interest rate (Annual rate ÷ 12 ÷ 100) | n = Total number of months

Example Calculation

For a loan of ₹5,00,000 at 8.5% per annum for 5 years: Monthly EMI ≈ ₹10,224. Total payable ≈ ₹6,13,440. Total interest ≈ ₹1,13,440.

Tips to Reduce Your EMI

Make a larger down payment to reduce the principal. Opt for a longer tenure to reduce monthly EMI (though total interest increases). Always compare interest rates from multiple lenders before applying for a loan.

Frequently Asked Questions

How is EMI calculated on a loan?

EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1), where P = Principal, r = monthly interest rate, n = number of months. Our calculator does this automatically — just enter your loan amount, rate, and tenure.

What is a good EMI to income ratio?

Financial experts recommend keeping your total EMIs below 40–50% of your monthly take-home income. This ensures you have enough left for living expenses and savings.

What is a personal loan interest rate in India 2025?

Personal loan interest rates in India typically range from 10% to 24% per year depending on the lender and your credit score. Bank loans are usually cheaper than NBFCs. Always compare rates before applying.

Does prepaying a loan save money?

Yes. Prepaying reduces your outstanding principal, which reduces total interest paid. Even one extra EMI per year can reduce the loan tenure significantly. Note: some lenders charge a prepayment penalty.

🏦 Loan EMI Calculator