EMI Calculator

EMI (Equated Monthly Instalment) is a fixed amount paid every month to repay a loan. It includes both principal repayment and interest. Formula: EMI = P × r × (1+r)^n / ((1+r)^n − 1), where P is the loan amount, r is the monthly interest rate, and n is the number of months.

A longer tenure reduces your monthly EMI but dramatically increases the total interest paid. For example, a ₹50L loan at 9% for 20 years has an EMI of ₹44,986 with ₹57.9L total interest. For 10 years, EMI is ₹63,338 but total interest drops to ₹26L. Always try to choose the shortest tenure your income allows.

Missing an EMI triggers: (1) bounce charge of ₹300–₹750, (2) penal interest of 2–3% p.a. on the overdue amount, (3) a negative entry in your CIBIL report. Consecutive missed EMIs can lead to the loan being classified as NPA and legal action. Contact your lender before missing — most offer a one-time EMI deferral.

Yes. Prepayment reduces your outstanding principal and saves interest. RBI mandates no prepayment charges on floating-rate retail loans. Fixed-rate loans may have a charge of 2–5% of the outstanding amount. Partial prepayment is also allowed — even one extra EMI per year can cut 2–3 years off a 20-year loan.

Fixed rate stays constant throughout the tenure, making EMI predictable. Floating rate (linked to RBI repo rate) changes periodically — your EMI or tenure may change when rates move. Floating rates are typically 0.5–1% lower than fixed to start, but carry the risk of future rate hikes.

A new loan initially dips your score by 5–10 points (hard enquiry). Regular on-time EMI payments then build your credit history and improve your score over 6–12 months. Missed payments can drop your score by 50–100 points. A well-managed loan is one of the best tools for building credit history.

Reducing tenure saves more total interest and makes you debt-free sooner — this is almost always the better financial choice. Reducing EMI gives you more monthly cash flow, which is useful only if you're facing income stress. Ask your lender explicitly which option they'll apply, as many default to EMI reduction.

Balance transfer means moving your outstanding loan to another lender at a lower interest rate. It makes sense when: (1) the new rate is at least 0.5% lower, (2) more than 40% of the tenure remains, and (3) processing fees on the new loan don't eat up the interest saving. Always calculate the net saving before transferring.

An EMI moratorium is a pause on EMI payments (typically 1–6 months) offered by lenders during financial stress (like COVID-19). Interest continues to accrue during the pause and is added to the outstanding principal. It is NOT a waiver — your total repayment increases. Use it only as a last resort.

Yes, but your combined EMIs should not exceed 40–50% of your net monthly income (debt-to-income ratio). Lenders check all your existing EMIs before sanctioning a new loan. Too many loans also hurt your CIBIL score and reduce your eligibility for future credit.

Home loan: Principal repayment up to ₹1.5L under 80C; interest up to ₹2L under Section 24(b) (self-occupied). Education loan: interest fully deductible under 80E for 8 years. Personal/car/business loans: no personal tax benefit, but business loan interest is a deductible business expense. SIP/investment loans: no deduction.

Every EMI has two parts: principal repayment (reduces your loan balance) and interest (cost of borrowing). In early months, most of the EMI goes toward interest. Over time, the principal component grows — this is the reducing balance method.

Make part-prepayments when you have surplus funds, choose a shorter tenure, or negotiate a lower rate. Even a ₹1–2 lakh prepayment in the first 3 years of a home loan can save ₹3–5 lakhs in total interest.

For floating-rate loans (linked to repo rate), banks typically keep your EMI fixed and adjust the tenure when rates change. If the rate change is large, the bank may revise your EMI. Fixed-rate loan EMIs never change.

Home loans: up to 30 years. Car loans: 5–7 years. Personal loans: 1–5 years. Education loans: up to 15 years after the moratorium. A longer tenure lowers your EMI but significantly increases total interest paid.