EMI Calculator

Calculate your monthly EMI for home loan, car loan, or personal loan. See total interest payable and the full year-by-year amortisation schedule.

Loan Amount₹30,00,000

Interest Rate (p.a.)8.5%

Loan Tenure20 Years

💡 Current home loan rates (2024): SBI 8.5–9.65%, HDFC 8.7–9.95%, ICICI 8.75–9.9%. Always compare before applying.

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Monthly EMI

₹0

Total Interest

₹0

Total Payable

Interest %

Principal

Interest

📅 Year-by-Year Amortisation Schedule

Year	Principal Paid (₹)	Interest Paid (₹)	Balance (₹)

How to Calculate EMI

EMI (Equated Monthly Instalment) is the fixed amount you pay to your lender every month. It consists of both principal and interest components. The EMI formula is:

EMI = P × r × (1+r)^n / ((1+r)^n - 1)

Where P = Loan amount, r = Monthly interest rate (annual rate ÷ 12 ÷ 100), n = Loan tenure in months. MoneyTechTools calculates this exactly and also shows you how much of each EMI goes toward principal vs interest.

Why Total Interest Can Be More Than the Loan

On a ₹30 lakh home loan at 8.5% for 20 years, you pay ₹35.7 lakh in interest — more than the loan itself. Total repayment is ₹65.7 lakh on a ₹30 lakh loan. This is why prepaying your home loan even partially saves a huge amount. Always use MoneyTechTools's EMI calculator to see the full picture before taking any loan.

Frequently Asked Questions

How can I reduce my EMI?

Three ways: (1) Make a larger down payment to reduce the principal. (2) Negotiate a lower interest rate — even 0.25% less saves lakhs over 20 years. (3) Extend the tenure — but note this increases total interest. Prepaying regularly is the most powerful strategy to save interest.

What percentage of salary should EMI be?

Banks generally cap home loan EMIs at 40–50% of your net monthly income (FOIR — Fixed Obligation to Income Ratio). However, personal finance experts recommend keeping all EMIs under 30–35% of take-home salary for financial comfort and ability to save/invest simultaneously.

What is the difference between reducing balance and flat rate interest?

Reducing balance (used by all banks and NBFCs for home/car/personal loans) means interest is calculated on the outstanding balance, which reduces as you pay EMIs. Flat rate means interest is calculated on the original loan amount throughout — making effective cost much higher. Always check which method applies.

Does prepaying a home loan save money?

Yes, significantly. Prepaying ₹1 lakh in the early years of a home loan can save ₹3–5 lakh in total interest. For home loans taken at floating rates, there is no prepayment penalty. For fixed rate loans, some lenders charge a small penalty. Use our EMI calculator to see your outstanding balance at any year.

Related Calculators

⚠️ Disclaimer: EMI calculations are estimates based on the inputs provided. Actual EMI may vary based on your lender's policies, processing fees, and applicable taxes. Always verify with your bank or NBFC before finalising any loan.

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