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InvesCalc

EMI Calculator India 2026

Free online EMI Calculator for home loan, car loan & personal loan. Calculate monthly EMI, total interest & get complete amortization schedule using RBI-compliant reducing balance formula.

Loan Details

Select loan type and enter details

₹
₹10,000₹50,00,00,000
% p.a.
1 % p.a.30 % p.a.
Months
60 Months360 Months

Your Loan EMI

52% interest

Monthly EMI

₹43,391

Principal

₹50.00 Lakh

Total Interest

₹54.14 Lakh

Payment Breakdown₹1.04 Cr
PrincipalInterest

Loan Insights

  • Interest is 52% of total payment
  • EMI should be ≤40% of monthly income
  • Prepayment reduces total interest

Potential Savings

If rate drops 0.5%

Save ₹3,76,598

2 years less tenure

Save ₹6,34,938

EMI Amortization Schedule

240 months (20 years)

MonthEMIPrincipalInterestBalance
1₹43,391₹7,974₹35,417₹49,92,026
2₹43,391₹8,031₹35,360₹49,83,995
3₹43,391₹8,088₹35,303₹49,75,907
4₹43,391₹8,145₹35,246₹49,67,762
5₹43,391₹8,203₹35,188₹49,59,559
6₹43,391₹8,261₹35,130₹49,51,298
7₹43,391₹8,319₹35,072₹49,42,978
8₹43,391₹8,378₹35,013₹49,34,600
9₹43,391₹8,438₹34,953₹49,26,162
10₹43,391₹8,498₹34,894₹49,17,665
11₹43,391₹8,558₹34,833₹49,09,107
12₹43,391₹8,618₹34,773₹49,00,489

Understanding Loan EMI

What is EMI (Equated Monthly Installment)?

EMI (Equated Monthly Installment) is a fixed payment amount made by a borrower to a lender at a specified date each month. EMIs are used to pay off both interest and principal each month so that over a specified number of years, the loan is paid off in full.

In India, all banks and financial institutions regulated by RBI use the reducing balance method to calculate EMI, which means you pay interest only on the outstanding loan amount, not the original principal.

How is EMI Calculated?

Our EMI calculator uses the standard reducing balance formula mandated by RBI:

EMI = [P × r × (1+r)^n] / [(1+r)^n - 1]

Where:

  • P = Principal loan amount
  • r = Monthly interest rate (annual rate ÷ 12 ÷ 100)
  • n = Loan tenure in months

Current Loan Interest Rates in India (2026)

Loan TypeInterest RateTypical Tenure
Home Loan8.25% - 9.50% p.a.Up to 30 years
Car Loan8.50% - 12.00% p.a.Up to 7 years
Personal Loan10.50% - 18.00% p.a.Up to 5 years
Education Loan8.50% - 12.00% p.a.Up to 15 years

Tips to Reduce Your EMI Burden

  • Negotiate interest rate – Even 0.25% reduction saves lakhs over long tenures
  • Make prepayments – Extra payments reduce principal and total interest
  • Choose shorter tenure – Higher EMI but significantly lower total interest
  • Maintain good credit score – 750+ CIBIL score gets you better rates
  • Compare multiple lenders – Different banks offer different rates
  • Consider floating vs fixed rate – Floating rates can be lower but vary with RBI policy

Home Loan EMI Example

For a ₹50 lakh home loan at 8.5% interest for 20 years:

  • Monthly EMI: ₹43,391
  • Total Interest: ₹54,13,840
  • Total Payment: ₹1,04,13,840

If you reduce tenure to 15 years, your EMI increases to ₹49,237, but you save ₹14,82,660 in interest!

Frequently Asked Questions about EMI

EMI (Equated Monthly Installment) is a fixed payment made to a lender each month. It's calculated using the formula: EMI = [P × r × (1+r)^n] / [(1+r)^n - 1], where P is principal, r is monthly interest rate, and n is tenure in months. This is the reducing balance method used by all RBI-regulated banks in India.
Three main factors affect EMI: (1) Loan amount - higher principal means higher EMI, (2) Interest rate - higher rate means higher EMI, and (3) Loan tenure - longer tenure means lower EMI but higher total interest. Credit score also affects the interest rate you get.
As of 2026, home loan interest rates in India range from 8.25% to 9.5% per annum depending on the bank and your credit profile. SBI offers rates from 8.25%, HDFC from 8.35%, and ICICI from 8.40%. Rates vary based on loan amount and tenure.
Shorter tenure means higher EMI but lower total interest paid. Longer tenure means lower EMI but significantly higher total interest. For example, a ₹50 lakh loan at 8.5% for 20 years costs ₹24.7 lakh in interest, while 30 years costs ₹40.3 lakh. Choose based on your monthly budget.
Banks typically offer home loans up to 80-90% of the property value. Your eligibility depends on your income, age, existing liabilities, and credit score. Generally, your EMI should not exceed 40-50% of your monthly income.
Yes, prepayment is an excellent way to reduce interest burden. Under RBI guidelines, banks cannot charge prepayment penalties on floating rate loans. Even small prepayments can significantly reduce your total interest and tenure.