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EMI Calculator
Know your monthly payment instantly

Calculate Equated Monthly Installment for any loan — home, car, personal, or bike. See total interest payable, amortization schedule, and compare scenarios. Used by 1.5 million Indians monthly.

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?What is EMI?

EMI (Equated Monthly Installment) is the fixed payment amount a borrower pays to a lender on a specified date each month. According to the Reserve Bank of India, Indian banks disbursed approximately ₹170 lakh crore in retail loans as of March 2025, with home loans accounting for 52%, personal loans at 27%, and vehicle loans at 12% of the total retail credit portfolio.

Each EMI payment consists of two components: principal repayment and interest payment. In the early years of a loan, a larger portion of the EMI goes toward interest. As the loan matures, the principal component increases — this is known as the reducing balance method, mandated by RBI for all retail loans since 2014.

ΣEMI calculation formula

The EMI formula uses the reducing balance method as prescribed by the Reserve Bank of India:

EMI = P × r × (1+r)ⁿ ÷ [(1+r)ⁿ − 1]

Where: P = Principal loan amount
r = Monthly interest rate (annual rate ÷ 12 ÷ 100)
n = Total number of monthly installments
Example: Home loan EMI calculation

For a ₹50 lakh home loan at 8.5% for 20 years: Monthly rate = 8.5/12/100 = 0.00708. EMI = ₹43,391 per month. Total payment = ₹1,04,13,840. Total interest = ₹54,13,840 (108% of principal). This is why even a 0.5% rate reduction can save ₹3-5 lakhs over the loan tenure.

%Current loan interest rates in India (April 2026)

Loan typeRate rangeTop banks
Home loan8.25% — 9.50%SBI 8.25%, HDFC 8.45%, ICICI 8.40%
Car loan8.50% — 12.00%SBI 8.65%, HDFC 8.75%, BoB 8.50%
Personal loan10.50% — 18.00%SBI 11.15%, HDFC 10.75%, ICICI 10.85%
Bike / Two-wheeler9.00% — 16.00%HDFC 9.50%, Bajaj 10.00%
Education loan8.15% — 12.00%SBI 8.15%, BoB 8.35%

!Tips to reduce your EMI

  • Compare across 5+ banks: A 0.5% lower interest rate on a ₹50 lakh home loan saves approximately ₹4.2 lakhs over 20 years. Use platforms like PaisaBazaar or BankBazaar to compare offers.
  • Make prepayments: RBI mandates zero prepayment penalty on floating-rate loans. Even ₹50,000 extra per year can reduce a 20-year loan to 15 years, saving ₹12+ lakhs in interest.
  • Choose shorter tenure: A 15-year home loan has a higher EMI than 20-year but saves 30-40% in total interest paid.
  • Maintain a good CIBIL score: Borrowers with CIBIL scores above 750 typically get 0.5-1.5% lower rates than those below 700, according to CIBIL's annual credit study.

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Frequently asked questions

What is EMI?
EMI (Equated Monthly Installment) is a fixed payment combining principal and interest paid monthly to repay a loan. Indian banks disbursed ₹170 lakh crore in retail loans as of March 2025. EMI is calculated using the reducing balance method mandated by RBI since 2014.
How is EMI calculated?
EMI = P × r × (1+r)^n / [(1+r)^n - 1], where P = principal, r = monthly rate (annual/12/100), n = total months. For ₹50L at 8.5% for 20 years: EMI = ₹43,391/month. Total interest = ₹54.14 lakhs.
Does prepayment reduce EMI?
Yes. RBI mandates zero prepayment penalty on all floating-rate retail loans. You can choose to reduce either the EMI amount or the loan tenure. Reducing tenure is mathematically more beneficial — saving 30-40% in total interest.
What is a good interest rate for home loans in 2026?
As of April 2026, competitive home loan rates start at 8.25% (SBI), 8.40% (ICICI), and 8.45% (HDFC). Rates below 8.5% are considered good. Borrowers with CIBIL 750+ typically qualify for the best rates.
EMI calculator for which loans?
This calculator works for all loan types: home loans (8-9.5%), car loans (8.5-12%), personal loans (10.5-18%), bike loans (9-16%), and education loans (8.15-12%). Just enter the amount, rate, and tenure.