Contents
EMI Calculator
Calculate your Equated Monthly Instalment for any loan — home, car, or personal. Get a full amortisation schedule, total interest cost, and prepayment analysis.
📋 View Full Amortisation Schedule (Year-wise)
| Year | Opening Balance | Principal Paid | Interest Paid | Closing Balance |
|---|
Visual Breakdown
EMI Formula and How It Works
Equated Monthly Instalment (EMI) is calculated using: EMI = P × r × (1+r)^n / ((1+r)^n − 1) Where: P = Principal loan, r = monthly interest rate (annual rate / 12 / 100), n = number of months. Total Interest = EMI × n − P. Total Amount Payable = EMI × n.
Loan Types & Typical EMI Tenure
| Loan Type | Typical Interest | Typical Tenure | Processing Fee |
|---|---|---|---|
| Home Loan | 8.5-9.5% | 15-30 years | 0.25-1% (₹10K-50K cap) |
| LAP (Loan Against Property) | 9.5-12% | 10-20 years | 0.5-1.5% |
| Personal Loan | 11-22% | 1-5 years | 1-3% |
| Car Loan | 9-11% | 3-7 years | 0.5-1% |
| Bike Loan | 10-14% | 1-4 years | 1-2% |
| Education Loan | 9-12% | 5-15 years | 0.5-1% |
| Credit Card EMI | 14-22% | 3-24 months | 1-2% |
| BNPL / Pay Later | 0% or 18-24% | 3-12 months | None to 2% |
Reducing Balance vs Flat Rate
Most Indian banks use reducing balance — interest charged only on outstanding principal. Flat rate (used by some NBFCs, especially for vehicle loans) charges interest on original principal throughout the tenure — making the EFFECTIVE rate roughly DOUBLE the quoted rate.
| ₹5L loan, 5 years | Reducing Balance @ 10% | Flat Rate @ 10% |
|---|---|---|
| Monthly EMI | ₹10,624 | ₹12,500 |
| Total Interest | ₹1,37,402 | ₹2,50,000 |
| Effective Annual Rate | 10% | ~17.9% |
Prepayment Strategy — Save Lakhs in Interest
Prepaying part of your loan principal cuts both EMI tenure and total interest. The earlier you prepay, the bigger the savings (since most interest is paid in early years).
| Scenario (₹50L Home Loan, 20 yr @ 9%) | Total Interest | Savings vs No Prepayment |
|---|---|---|
| No prepayment | ₹58.0 lakh | — |
| Prepay ₹1L every Dec (bonus) | ₹38.7 lakh | ₹19.3 lakh saved |
| Prepay ₹5L in Year 5 | ₹49.1 lakh | ₹8.9 lakh saved |
| Prepay ₹5L in Year 15 (late) | ₹56.2 lakh | Only ₹1.8 lakh saved |
| Increase EMI by 10% annually | ₹37.5 lakh + early payoff | ₹20.5 lakh saved + 7 yrs early |
Most banks now allow free prepayment on floating-rate home loans (RBI mandate since 2014). Fixed-rate loans may have 2-4% prepayment charge.
Floating vs Fixed Rate
| Aspect | Floating Rate | Fixed Rate |
|---|---|---|
| Linked To | Repo / EBLR / MCLR | Locked at sanction |
| Rate Changes | Yes — quarterly resets | No — stays same |
| Typical Rate | 8.5-9.5% (current) | 10-11% (premium for certainty) |
| Prepayment Charge | NIL for individuals (RBI rule) | 2-4% |
| Best For | Long tenure; rate-cut expectations | Risk-averse; rate-hike fears |
For 80%+ Indian home borrowers, floating-rate is the right choice. Most home loans are now linked to RBI’s external benchmark (Repo + spread) — transmits rate changes faster than older MCLR.
More FAQs
Can I switch from fixed to floating rate?
Yes — most lenders allow a one-time conversion (₹5K-25K fee or 0.5% of outstanding). If interest rates are falling, this can save lakhs. Compute breakeven before switching.
What is MCLR vs EBLR?
MCLR (Marginal Cost of Funds-based Lending Rate): pre-2019 reference. EBLR (External Benchmark-based Lending Rate, linked to RBI Repo): post-2019 standard. EBLR transmits RBI rate changes faster. Most banks have shifted home loans to EBLR.
Can I take loan against my FD?
Yes — up to 85-90% of FD value at 1-2% above FD interest rate. Useful for short-term needs. Saves the cost of breaking FD (premature penalty).
What is the role of credit score in EMI?
CIBIL score 750+ usually gets best rates. Score 700-750: standard rates. Below 700: higher rates (+0.5-2%). Below 650: loan likely rejected. Check your CIBIL annually via free RBI-mandated portal.
Top-up loan vs second loan?
Top-up: Additional loan on existing home loan account. Same interest rate (8.5-10%). Quick processing. Second loan: Separate new loan. Often higher rate. Top-up is preferred when possible.
How does GST affect loan EMI?
GST @ 18% applies on processing fees, foreclosure charges, and bouncing penalties — but NOT on EMI interest itself. Total GST on a ₹50L home loan transaction is roughly ₹1-3K (on processing fee).