EMI calculator
For a car, phone or anything else you buy on a loan.
About this calculator
How the EMI is worked out
An EMI is the same amount every month, but what it is made of changes. Early on most of it is interest, because interest is charged on the balance you still owe. As the balance falls, more of each payment goes to principal. That is why the first year of a long loan barely dents the amount outstanding.
The formula lenders use is EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1), where P is the amount borrowed, r is the monthly interest rate (the yearly rate divided by 12) and n is the number of months. This page runs that calculation and then builds the full schedule month by month, so you can see the split rather than just the final number.
What to check before you sign
The EMI is only part of the cost. Processing fees are usually 0.5% to 2.5% of the loan and are often deducted from the amount you receive, so you borrow a little less than you think. Ask for the figure in rupees, not a percentage.
Compare the total of all EMIs rather than the monthly figure. A longer tenure gives a comfortable EMI and a much larger interest bill. Stretching a car loan from five years to seven lowers the monthly payment but can add tens of thousands of rupees in interest.
Common questions
Does a longer tenure make a loan cheaper?
No. A longer tenure lowers the monthly EMI but raises the total interest, because you owe the money for longer. The EMI is what fits your budget; the total of all EMIs is what the loan actually costs.
Why is most of my early EMI going to interest?
Interest is charged on the balance outstanding, which is highest at the start. Each month the balance falls slightly, so the interest portion shrinks and the principal portion grows. The schedule on this page shows the crossover point.
Is the interest rate on my loan fixed or floating?
Car and personal loans in India are usually fixed, so the EMI stays the same for the whole tenure. Home loans are usually floating and linked to an external benchmark such as the repo rate, so the EMI or the tenure changes when rates move.
Can I reduce the EMI later?
Paying a lump sum towards the principal lets you either keep the EMI and finish sooner, or keep the tenure and lower the EMI. Keeping the EMI and shortening the tenure saves far more interest.