EMI Calculator
Reducing-balance EMI used by most banks & NBFCs. Amounts follow your selected currency; copy below references Indian loan norms.
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EMI calculator
This tool uses the monthly reducing balance method—the same structure most Indian banks and NBFCs use for home loans, personal loans, and auto loans. Your actual EMI may differ slightly based on the lender’s day count, processing fees, insurance, and whether the rate is fixed or floating (linked to RBI repo or benchmark).
EMI formula (reducing balance)
EMI = P × r × (1 + r)n / ((1 + r)n − 1)
- P = loan principal
- r = monthly interest rate = (annual % ÷ 12 ÷ 100)
- n = number of monthly instalments (years × 12)
Typical interest ranges (indicative)
- Home loan: often roughly 8%–9.5%+ p.a. depending on profile and repo-linked rates
- Personal loan: often higher, commonly roughly 10%–18%+ p.a.
- Car loan: usually between home and personal loan rates for many borrowers
Always confirm the APR, processing fee, and prepayment rules on the lender’s sanction letter.
How to lower your EMI
- Choose a longer tenure (lower EMI, more total interest)
- Negotiate a lower rate or switch lenders after comparing
- Make part-prepayments when allowed to cut outstanding principal
- Maintain a strong credit score (CIBIL etc.) for better offers
Frequently asked questions
Is EMI fixed for the whole tenure?
For a fixed-rate loan, EMI is usually constant. For floating rates, the lender may reset EMI or tenure when benchmark rates change.
Does this calculator include GST or fees?
No—it shows principal-and-interest EMI only. Add processing fees, legal charges, and insurance separately as per your bank.