Loan EMI Calculator India
Calculate your monthly EMI and view the full amortization schedule in INR (₹).
Monthly Amortization Schedule
Track how each monthly EMI payment splits between paying down principal and clearing interest.
| Month | EMI (₹) | Principal (₹) | Interest (₹) | Balance (₹) |
|---|
What is an Equated Monthly Instalment (EMI)?
An Equated Monthly Instalment (EMI) is a fixed payment amount made by a borrower to a bank or financial institution on a specific date each calendar month. EMIs are designed to pay off both interest and principal simultaneously over a specified tenure, ensuring the loan is completely repaid at the end of the term.
The Mathematical EMI Formula
Banks and housing finance corporations in India calculate monthly reducing balance EMIs using the following universal compound formula:
EMI = [P × r × (1 + r)^n] ÷ [(1 + r)^n − 1]
• P = Principal Loan Amount (e.g. ₹10,00,000)
• r = Monthly Interest Rate = (Annual Interest Rate ÷ 12) ÷ 100
• n = Loan Tenure in Total Months (e.g. 20 years × 12 = 240 months)
Worked Real-World Home Loan Example
Let’s examine a ₹10,00,000 home loan sanctioned at an 8.5% annual interest rate over a 20-year term:
- Principal (P): ₹10,00,000
- Monthly Rate (r): 8.5 ÷ 12 ÷ 100 = 0.0070833
- Number of Months (n): 20 × 12 = 240 months
- Monthly EMI: ₹8,678
- Total Interest Over 20 Years: ₹10,82,776
- Total Repayment to Bank: ₹20,82,776
Over 20 years at 8.5%, total interest paid actually exceeds the original borrowed principal!
How to Drastically Cut Down Your Total Loan Interest
- Make Annual Principal Prepayments: Paying just one extra EMI per year or chipping in bonuses towards the principal early in the loan tenure reduces your compounding balance significantly, shaving years off your term.
- Choose the Shortest Affordable Tenure: A 15-year tenure instead of 20 years raises your monthly payment slightly, but cuts overall interest outgo by hundreds of thousands of Rupees.
- Track Benchmark Rates: In India, home loans are pegged to the Reserve Bank of India’s Repo Linked Lending Rate (RLLR). When interest rates fall, verify that your bank passes the rate cut to your account.