Calculate your exact monthly EMI for any loan type. See principal vs interest breakdown and total outgo.
EMI = P × r × (1+r)^n / ((1+r)^n - 1), where P = principal loan amount, r = monthly interest rate (annual rate ÷ 12 ÷ 100), n = tenure in months. Our EMI calculator does this instantly for any loan type.
Banks typically approve loans where total EMI is below 40-50% of monthly income (FOIR). Ideally, keep your total EMIs below 35% of take-home salary for financial health.
Yes. You can reduce EMI by: (1) making partial prepayments to reduce principal, (2) negotiating rate reduction when your CIBIL improves, (3) balance transfer to a lower-rate lender, or (4) extending tenure (increases total interest paid).
Home loans have the lowest EMI for the same amount since they have the longest tenure (up to 30 years) and lowest interest rates (from 8.5%). Personal loans have the highest EMI due to short tenure (5 years max) and higher rates (10-24%).
EMI (Equated Monthly Instalment) is the fixed monthly payment you make to repay a loan over a set tenure. It includes both the principal and interest. Understanding your EMI before taking a loan helps you budget effectively and avoid over-borrowing. This calculator works for home loans, car loans, personal loans, and education loans.
Your total EMIs (including all loans) should not exceed 40–50% of your take-home salary. Banks use FOIR (Fixed Obligation to Income Ratio) — ideally below 50% for home loans.
Three ways: (1) Increase down payment to reduce principal, (2) Choose a longer tenure, (3) Negotiate a lower interest rate or balance transfer to a cheaper lender. Prepayment also reduces future EMIs.
Missing an EMI attracts a late penalty (1–2% of EMI), hurts your CIBIL score, and can trigger bank action after 3 consecutive misses. Always maintain an emergency fund to cover 3–6 months of EMIs.
Use our Real Estate ROI calculator for a full comparison. As a thumb rule: if rental yield in your city is below 3%, buying is usually better long-term if you plan to stay 10+ years.
RBI rules prohibit prepayment penalties on floating rate home loans. Fixed rate loans may attract 1–2% foreclosure charge. Personal loans often have 2–5% foreclosure fee within the first year.
A 20-year home loan at 8.75% on ₹50L pays ₹55.7L in interest. The same loan for 10 years pays only ₹24.2L in interest — saving ₹31.5L. Shorter tenure saves massive interest if your income allows.
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An EMI (Equated Monthly Instalment) is the fixed monthly payment you make to repay a loan. It covers both principal reduction and interest. The EMI formula is: EMI = P × r × (1 + r)ⁿ / [(1 + r)ⁿ − 1], where P is loan amount, r is monthly interest rate, and n is total months. A ₹50 lakh home loan at 8.5% for 20 years produces an EMI of ₹43,391 — and you pay ₹1.04 crore total (₹54 lakhs in interest alone).
The critical insight: in the first year of any loan, over 80% of each EMI is interest, not principal. This is why prepayment in the early years saves dramatically more than the same prepayment in year 15. A ₹5 lakh prepayment in year 5 of a ₹50L loan at 8.5% saves approximately ₹13 lakhs in interest.