๐Ÿ‡ฎ๐Ÿ‡ณ India

EMI Calculator India 2026

Calculate your loan EMI instantly. Enter loan amount, interest rate, and tenure to see your monthly instalment, total interest, and amortization schedule. Compare multiple offers and see how prepayment saves you money. Works for personal loans, car loans, education loans, and more.

โ‚น
Total loan principal amount
%
Annual interest rate on reducing balance
yr
Total loan repayment period in years
Select a preset to auto-fill typical interest rate
No
Typically 1-3% of loan amount + 18% GST
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How to Use This Calculator

EMI Calculator tab

Enter your loan amount, interest rate (annual, reducing balance), and tenure in years. The calculator instantly shows your monthly EMI, total interest payable, and total payment. Select a loan type preset to auto-fill a typical interest rate. Expand "More options" to include processing fee with GST. View the yearly amortization schedule to see how principal and interest split changes over time.

Prepayment Impact tab

Enter the same loan details plus a lump sum prepayment amount and the month you plan to make it. The calculator shows how many months you save, how much interest you avoid, and compares the original vs new total interest. RBI mandates no prepayment penalty on floating rate loans.

Compare Offers tab

Enter the same loan amount and up to 3 different offers with different interest rates and tenures. The calculator finds the cheapest total cost and the lowest monthly EMI. A lower EMI does not always mean a cheaper loan — longer tenure increases total interest.

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The Formula

EMI (Equated Monthly Instalment) is calculated using the reducing balance method, which is the standard method used by all Indian banks and NBFCs as per RBI guidelines:

EMI = [P × r × (1+r)n] / [(1+r)n − 1]

Where:
P = Principal loan amount
r = Monthly interest rate (annual rate ÷ 12 ÷ 100)
n = Number of monthly instalments (tenure in years × 12)

Example:
Loan = โ‚น5,00,000 | Rate = 10.5% p.a. | Tenure = 5 years
r = 10.5 / 12 / 100 = 0.00875
n = 5 × 12 = 60 months
EMI = [5,00,000 × 0.00875 × (1.00875)60] / [(1.00875)60 − 1]
EMI = โ‚น10,747/month

Total interest: โ‚น10,747 × 60 − โ‚น5,00,000 = โ‚น1,44,798
Total payment: โ‚น6,44,798

Processing fee: Typically 1–3% of loan amount + 18% GST on the fee.
Prepayment: No penalty on floating rate loans (RBI circular, October 2014).

In the early months, a larger portion of the EMI goes towards interest. Over time, the interest component decreases and the principal component increases. This is visible in the amortization schedule.

Example

Priya — Personal loan of โ‚น5,00,000 at 10.5% for 5 years

Priya takes a personal loan of โ‚น5,00,000 from her bank at 10.5% p.a. (reducing balance) for 5 years. She also pays a 2% processing fee.

Step 1: Calculate EMI

Loan amountโ‚น5,00,000
Interest rate10.5% p.a.
Tenure5 years (60 months)
Monthly EMIโ‚น10,747

Step 2: Total cost

Total interest payableโ‚น1,44,798
Total paymentโ‚น6,44,798
Interest as % of principal28.96%

Step 3: Processing fee

Processing fee (2%)โ‚น10,000
GST on fee (18%)โ‚น1,800
Total upfront costโ‚น11,800
Effective loan costโ‚น1,56,598

Prepayment scenario

If Priya makes a lump sum prepayment of โ‚น50,000 after 12 months, she saves approximately 5 months and around โ‚น18,000 in interest. No prepayment penalty applies since most personal loans today are on floating rates.

FAQ

EMI stands for Equated Monthly Instalment. It is a fixed payment amount made by a borrower to a lender at a specified date each month. The EMI is calculated using the formula: EMI = [P x r x (1+r)^n] / [(1+r)^n - 1], where P is the principal, r is the monthly interest rate, and n is the number of months. Indian banks use the reducing balance method, where interest is charged on the outstanding balance each month, not on the original loan amount.
No prepayment penalty on floating rate loans. The RBI issued a circular in October 2014 mandating that banks cannot charge prepayment penalties on floating rate term loans taken by individual borrowers. However, fixed rate loans may carry a prepayment charge of 2–5% of the outstanding amount. Always check your loan agreement for specific terms. Making prepayments early in the tenure saves the most interest.
In a flat rate method, interest is calculated on the entire original loan amount for the full tenure. In the reducing balance method (used by all banks per RBI norms), interest is calculated on the outstanding balance, which decreases with each EMI payment. A flat rate of 10% is roughly equivalent to a reducing balance rate of 17–18%. This calculator uses the reducing balance method, which is the standard across Indian banking. Always ask lenders to quote the reducing balance rate.
The RBI repo rate (currently 5.25% as of the February 2026 MPC decision) is the rate at which RBI lends to commercial banks. When the repo rate changes, banks adjust their lending rates. If you have a floating rate loan linked to the repo rate or MCLR, your interest rate changes with RBI policy decisions. A 0.25% rate cut on a โ‚น50 lakh home loan with 20-year tenure reduces EMI by approximately โ‚น800/month. Fixed rate loans are not affected by repo rate changes.
Processing fees typically range from 1–3% of the loan amount, plus 18% GST on the fee. For example, a โ‚น10 lakh loan with a 2% processing fee = โ‚น20,000 + โ‚น3,600 GST = โ‚น23,600 upfront. Some banks offer zero or reduced processing fees during festive seasons. The fee is usually deducted from the loan disbursement amount or charged separately before disbursement. Always negotiate the processing fee — many banks are willing to reduce or waive it for existing customers.

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