💳 Loan Calculator
EMI Calculator
An EMI (Equated Monthly Instalment) calculator computes your fixed monthly repayment for any loan using the formula:
EMI = [P × R × (1+R)^N] / [(1+R)^N – 1].
Works for home loans, car loans, personal loans, and education loans.
SBI Home Loan8.50% p.a.
SBI Car Loan9.15% p.a.
Personal Loan10.5–24% p.a.
EMI Calculator
₹
%
Years
Monthly EMI ₹17,356
Total Principal ₹20,00,000
Total Interest ₹21,65,421
Total Repayment ₹41,65,421
Principal
Interest
Amortization Schedule
Yearly breakup of principal vs interest repayment
| Year | Opening Balance | Principal Paid | Interest Paid | Closing Balance |
|---|
How is EMI calculated?
EMI is calculated using the Reducing Balance Method, which is the RBI-mandated standard for all bank loans in India.
EMI Formula:
EMI = [P × R × (1+R)^N] / [(1+R)^N – 1]
P = Principal | R = Monthly Rate (Annual ÷ 12 ÷ 100) | N = Tenure (months)
Example:
- Loan: ₹20,00,000
- Rate: 8.5% p.a. → Monthly rate = 0.7083%
- Tenure: 20 years = 240 months
- EMI = ₹17,356/month
Current Bank Loan Rates (July 2025)
| Bank | Home Loan | Car Loan | Personal |
|---|---|---|---|
| SBI | 8.50% | 9.15% | 12.05% |
| HDFC Bank | 8.75% | 9.25% | 10.75% |
| ICICI Bank | 8.75% | 9.30% | 10.80% |
| Axis Bank | 8.75% | 9.20% | 10.80% |
| Kotak Bank | 8.70% | 9.25% | 10.99% |
* Rates indicative as of July 2025. Subject to change based on RBI repo rate.
Frequently Asked Questions
What is the EMI formula?
EMI = [P × R × (1+R)^N] / [(1+R)^N – 1], where P = Principal, R = Monthly interest rate (Annual ÷ 12 ÷ 100), N = Loan tenure in months. For a ₹20 lakh loan at 8.5% for 20 years: EMI ≈ ₹17,356/month.
What is the EMI for ₹10 lakh personal loan for 5 years?
At 12% annual interest for 5 years (60 months), the EMI is approximately ₹22,244/month. Total interest paid = ₹3.35 lakh. Total repayment = ₹13.35 lakh.
Does prepayment reduce EMI or tenure?
Most banks offer two options: (1) Reduce EMI keeping tenure same, or (2) Reduce tenure keeping EMI same. Reducing tenure saves more interest. RBI mandates zero prepayment penalty on floating rate home loans.
What is the difference between flat rate and reducing balance EMI?
Flat rate calculates interest on the full principal throughout tenure. Reducing balance (used by all RBI-regulated banks) calculates interest on outstanding principal, which decreases with each EMI. A flat rate of 8% = approximately 14-15% in reducing balance terms.
How can I reduce my loan EMI?
Three ways: (1) Increase down payment to lower principal, (2) Negotiate lower interest rate — even 0.25% reduction on ₹50 lakh saves ₹8+ lakh over 20 years, (3) Extend tenure — but this increases total interest. Refinancing/balance transfer is also a good option when rates fall.