An EMI includes both principal and interest. In the early months most of the EMI is interest; over time the principal share grows. Prepaying part of the loan reduces either the EMI or the tenure.
How to use the EMI Calculator
- Loan amount
- Interest rate (p.a.)
- Loan tenure
- Processing fee
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter the loan amount, interest rate, tenure (years or months) and processing fee.
Tips
- Figures use the latest published rates; government scheme rates are revised every quarter.
- Choose between the old and new tax regimes carefully – deductions only count in the old regime.
- Keep proofs of investments and rent for your employer and the tax return.
- Use the official portal of each scheme for exact maturity values.
Common mistakes to avoid
- Assuming scheme interest rates are fixed for the whole term.
- Forgetting tax on interest from fixed and recurring deposits.
- Missing the yearly minimum deposit on PPF or Sukanya Samriddhi accounts.
Inputs explained
| Field | What to enter |
|---|---|
| Loan amount | Amount in ₹ |
| Interest rate (p.a.) | In % |
| Loan tenure | Units: years, months |
| Processing fee | In % |
What each result means
- Monthly EMI = pmt([Interest rate (p.a.)]÷1200, [Loan tenure], [Loan amount])
- Total interest payable = [Monthly EMI]×[Loan tenure] – [Loan amount]
- Total payment (principal + interest) = [Monthly EMI]×[Loan tenure]
- Processing fee (+18% GST) = [Loan amount]×[Processing fee]÷100×1.18
- Interest as a share of the total payment = [Total interest payable]÷[Total payment (principal + interest)]×100
- Effective annual rate including the fee = rate([Loan tenure], 0 – [Monthly EMI], [Loan amount] – [Processing fee (+18% GST)])×1200
Example values
How the main result changes when Loan amount changes and everything else stays at the example values above:
| Loan amount | Monthly EMI |
|---|---|
| 500,000 | 10,623.52 |
| 750,000 | 15,935.28 |
| 1,000,000 | 21,247.04 |
| 1,250,000 | 26,558.81 |
| 1,500,000 | 31,870.57 |
| 2,000,000 | 42,494.09 |
Formula
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), r = annual rate ÷ 12 ÷ 100, n = monthsTotal interest = EMI × n − PWorked example
Inputs — Loan amount: ₹1,000,000; Interest rate (p.a.): 10 %; Loan tenure: 5 years; Processing fee: 1 %.
Results — Monthly EMI = ₹21,247.04; Total interest payable = ₹274,822.68; Total payment (principal + interest) = ₹1,274,822.68; Processing fee (+18% GST) = ₹11,800.00; Interest as a share of the total payment = 21.56 %; Effective annual rate including the fee = 10.51 %.
Frequently asked questions
How is EMI calculated?
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1).
What is the EMI on a ₹10 lakh loan?
About ₹21,250 a month at 10% for 5 years.
Does a longer tenure reduce EMI?
Yes, but total interest increases.
What formula does the EMI Calculator use?
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), r = annual rate ÷ 12 ÷ 100, n = months.