EMI Calculator
Calculate monthly EMI, total interest payable, and the full amortisation schedule for any loan in India.
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Frequently asked questions
How is EMI calculated?
EMI uses the standard reducing-balance formula: EMI = P × r × (1+r)n / ((1+r)n − 1) where P = principal, r = monthly interest rate (annual rate ÷ 12 ÷ 100), and n = tenure in months. Indian banks use this same formula across home, personal, car, and education loans.
What is a good EMI-to-income ratio?
Keep total EMIs under 40-50% of your take-home (post-tax) income. Banks use this ratio (called FOIR — Fixed Obligation to Income Ratio) to decide your eligibility. Higher than 50% means rejection or higher interest rates.
Should I choose a longer tenure to reduce EMI?
Longer tenure reduces monthly EMI but dramatically increases total interest paid. A 30-year vs 20-year home loan saves ~ Rs 8,000/month in EMI but costs an extra Rs 25-40 lakh in interest over the loan. Pick the shortest tenure your budget allows.
What is the difference between fixed and floating interest?
Fixed: rate stays constant throughout the loan, predictable EMIs. Floating: rate changes with RBI repo rate (linked to MCLR or RLLR), can rise or fall. Most Indian home loans are floating; personal/car loans are usually fixed. Floating is cheaper long-term but riskier.
Can I prepay my loan?
Most banks allow free prepayment of home loans after 1-2 years. Personal loans charge 4-5% prepayment fee in the first year. Always check the prepayment clause before signing. Prepaying within the first 5 years saves the most interest.