EMI Calculator
Calculate your loan EMI, interest, and repayment schedule
Monthly EMI
₹13,493
Principal Amount
₹10,00,000
Total Interest
₹6,19,220
Total Amount Payable
₹16,19,220
Actual Tenure
10 Years 0 Months
How Does Loan EMI Calculation Work?
An Equated Monthly Installment (EMI) is a fixed payment amount made by a borrower to a lender at a specified date each calendar month to clear an outstanding loan over a specified tenure.
Indian commercial lenders use the Reducing Balance Method to compute EMIs. Under this method, interest is charged only on the outstanding principal balance remaining at the end of each month, rather than on the original borrowed amount.
In the early years of any long-term loan, the major portion of each monthly EMI goes toward interest repayment. As the loan matures, the interest component decreases and the principal repayment component steadily accelerates.
Loan EMI Parameters & Benchmark Tenures
| Parameter | Details & Guidelines |
|---|---|
| Calculation Formula | EMI = [P * r * (1+r)^n] / [(1+r)^n - 1], where r is monthly interest rate. |
| Personal Loan Tenures | 1 to 5 years (typically 10.5% to 16% interest rate). |
| Auto / Car Loan Tenures | 3 to 7 years (typically 8.5% to 10.5% interest rate). |
| Home Loan Tenures | 10 to 30 years (typically 8.35% to 9.5% interest rate). |
| Prepayment Impact | Extra payments reduce outstanding principal, significantly curtailing loan tenure and interest. |
Compare Loan Types & Payoff Approaches
Standard Loan EMI
Balanced monthly installment calculated using reducing balance amortization across your chosen tenure.
Home Loan EMI & Prepayment
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