Calculate loan EMI, total interest and total payment for home, car or personal loans in India. Free EMI calculator on reducing-balance method with instant results.
Monthly EMI = principal × monthly rate × (1 + monthly rate) ^ months ÷ ((1 + monthly rate) ^ months − 1), where monthly rate = annual rate ÷ 12Total payment = EMI × monthsTotal interest = total payment − principalQueries like home loan EMI 50 lakh 20 years run in lakhs every month because the EMI decides the house. At 9%, 50 lakh over 20 years costs about 44,986 rupees monthly with roughly 58 lakh total interest, nearly doubling the payout. This calculator uses the same reducing-balance method Indian banks use.
The prepayment vs tenure reduction debate ends with math: the same part-payment cut against tenure saves far more interest than cutting EMI, since the principal finishes years earlier. And floating-rate borrowers should track the repo: since October 2019 retail loans reset with RBI moves, usually within one cycle.
For tax planners: old-regime borrowers claim principal under 80C (1.5 lakh) and self-occupied interest under 24(b) (2 lakh); the new regime gives nothing. Processing fees and GST sit outside this math, so add about 0.5 to 1% when comparing lenders.
Indian banks charge interest only on the outstanding loan balance, which shrinks with every EMI. Early EMIs are mostly interest, later EMIs mostly principal — this calculator uses the same reducing-balance method.
No. One-time processing fees (typically 0.5–1%) and GST are not included; add them to the loan amount mentally when comparing offers.
Yes. Any part-prepayment directly cuts the principal, so all future interest is charged on a smaller balance. Compare the interest saved before foreclosing.
Fixed-rate EMIs stay constant through the tenure. Floating rates move with the bank's benchmark (usually repo-linked), so your EMI or tenure changes when RBI changes rates.
Since October 2019, banks link retail floating loans to an external benchmark — mostly the RBI repo rate — plus a bank spread. A repo cut usually reaches your EMI within one reset cycle.
Cutting tenure saves far more interest than cutting EMI for the same prepayment, because the principal finishes earlier. Choose EMI-cut only if monthly cash flow is tight.
Under the old tax regime, principal repayment qualifies for 80C (up to ₹1.5 lakh) and self-occupied interest for 24(b) (up to ₹2 lakh). The new regime offers no home-loan deductions.
Last updated: 14 Oct 2026, 00:13 IST