EMI Calculator
Calculate your monthly loan EMI using the reducing balance method — same as used by Indian banks.
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How is EMI Calculated?
Banks use the Reducing Balance Method to calculate EMI. The formula is:
EMI = P × r × (1+r)ⁿ / [(1+r)ⁿ – 1]
Where P = Principal, r = Monthly interest rate, n = Tenure in months.
Illustrative EMI Example
At 8.5% p.a. for 20 years, the EMI is about ₹868 per ₹1 lakh borrowed. Your actual rate, fees, reset schedule and loan terms depend on the lender and product.
What is the lowest home loan EMI I can get? ▼
Home loan EMIs start around ₹868 per lakh for a 20-year tenure at 8.5% p.a. Negotiating a lower rate or extending tenure reduces EMI but increases total interest outgo.
Does prepayment reduce EMI or tenure? ▼
You can choose either. Reducing tenure while keeping the same EMI saves far more interest. Most banks allow unlimited part-prepayments on floating rate loans without charges.
Is the EMI calculator accurate for all banks? ▼
The formula is widely used for amortising loans, but lenders can differ in rounding, fees, reset rules and repayment schedules. Treat this as an estimate and compare it with your lender's sanction terms.