PocketEMI Calculator
Compute the Equated Monthly Instalment (EMI) for any loan — home, car, education or personal. Enter the principal, annual interest rate and tenure; the calculator instantly returns the monthly EMI, total interest payable and total amount repaid, along with a 12-month amortization schedule and an optional prepayment impact toggle.
Visual breakdown
Amortization visualization
First 12 months — principal (teal) vs interest (amber) per EMI
Amortization schedule (first 12 months)
| Month | Principal | Interest | EMI | Balance |
|---|
Each row shows how the EMI splits into interest (charged on the outstanding balance) and principal (the rest). The balance column shrinks every month until it reaches zero.
How EMI is calculated
The EMI is computed using the standard reducing-balance formula, which is what every major Indian bank uses for home, car and personal loans. The key idea: interest is charged every month on the outstanding principal, not on the original loan amount. So in the early years, most of your EMI goes towards interest; towards the end, most of it goes towards principal.
EMI formula
where:
- P = principal (loan amount)
- r = monthly interest rate = annual rate ÷ 12 ÷ 100
- n = loan tenure in months
Total payment = EMI × n • Total interest = (EMI × n) − P
For example, a ₹10 lakh loan at 9.5% p.a. for 5 years (60 months) gives r = 0.007917 and n = 60. Plugging in: EMI = 10,00,000 × [0.007917 × (1.007917)60] / [(1.007917)60 − 1] ≈ ₹21,002 per month. Total payment = ₹12,60,120 and total interest = ₹2,60,120.
Worked example
₹50 lakh home loan @ 9% p.a. for 20 years
- Principal
- ₹50,00,000
- Interest rate
- 9% p.a. (r = 0.0075/month)
- Tenure
- 240 months (20 years)
- Monthly EMI
- ₹44,986
- Total interest
- ₹57,96,713
- Total payable
- ₹1,07,96,713
Same loan with ₹5,000 monthly prepayment
- New EMI
- ₹49,986 (EMI + prepay)
- New tenure
- 186 months (saves 54 months)
- New total interest
- ~₹42,79,581
- Interest saved
- ~₹15,17,130
Frequently Asked Questions
What is EMI and how is it calculated?
EMI stands for Equated Monthly Instalment — the fixed monthly payment you make to repay a loan over its tenure. Despite being "equated", an EMI is not split equally between principal and interest. The lender calculates interest each month on the outstanding principal, and the rest of the EMI reduces the principal. So early EMIs are mostly interest, and later EMIs are mostly principal.
The mathematical formula is EMI = P × [r(1+r)n] / [(1+r)n − 1], where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the tenure in months. This formula assumes a fixed rate and equal monthly payments — for floating-rate loans, the EMI can change at each reset.
How does prepayment affect my loan EMI?
Prepayment — also called part-prepayment or foreclosure — directly reduces your outstanding principal. Most Indian banks allow prepayment on floating-rate home loans with zero charges (RBI mandates this for individual borrowers). Fixed-rate loans may have a 2-4% prepayment penalty, though SBI and most PSU banks waive it.
After prepayment you typically get two choices: (1) keep EMI the same and shorten the tenure (this saves the most interest), or (2) keep tenure the same and reduce the EMI (this improves monthly cash flow but saves less). Even a modest ₹5,000 monthly prepayment on a 20-year ₹50 lakh home loan can save ₹8+ lakh in interest and shave 3-4 years off the tenure. Use the prepayment input above to see your savings.
What is a typical home loan interest rate in India?
As of 2024-25, home loan interest rates in India typically range from 8.4% to 9.8% per annum for salaried borrowers. PSU banks (SBI, Punjab National, Bank of Baroda) usually offer the lowest rates linked to RLLR/EBLR. Private banks (HDFC, ICICI, Axis) are 10-30 bps higher but with faster processing. NBFCs and HFCs (Bajaj, LIC Housing, Tata Capital) can be higher still but are more flexible on eligibility.
Personal loans are much costlier — typically 11% to 24% p.a., with some NBFCs charging even higher. Car loans usually sit between 9% and 13% p.a. depending on vehicle type and your credit score. A CIBIL score above 750 helps you negotiate the lowest available rate.
What is the difference between flat rate and reducing balance rate?
In a flat-rate loan, interest is computed on the original principal for the entire tenure — the principal effectively doesn't reduce. This is misleading because the quoted rate looks low, but the actual cost is much higher. Some NBFCs and used-car financiers still use flat rates for marketing.
In a reducing-balance loan (the industry standard for home loans and most personal loans), interest is charged only on the outstanding principal, which shrinks every month. A "12% flat" car loan for 5 years can effectively cost you around 21% on a reducing-balance basis — almost double the headline figure. Always insist on the reducing-balance rate when comparing loans, and read the sanction letter carefully.
Does the EMI change if RBI changes the repo rate?
For floating-rate loans (most home loans and some car loans in India), yes. RBI's Monetary Policy Committee reviews the repo rate roughly every two months. When it changes, your lender's external benchmark (typically repo-linked lending rate, RLLR, or EBLR) moves too, and your effective interest rate is reset — usually within 90 days.
At reset, the lender will typically offer you a choice: keep the EMI constant and extend the tenure, or keep the tenure constant and adjust the EMI. The default in most loan agreements is to keep the EMI constant, which protects your monthly cash flow but extends (or shortens) the loan. If your tenure has already been extended significantly, consider voluntarily increasing your EMI to claw back the interest cost.