How to use the EMI Calculator (Home, Car & Personal Loan)
- Enter the loan amount you want to borrow.
- Enter the yearly interest rate offered by the bank.
- Enter the tenure in years.
- See your EMI, total interest and repayment schedule.
EMI formula
EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1)
P is the loan amount, r is the monthly interest rate (yearly rate ÷ 12 ÷ 100) and n is the number of monthly instalments.
Example: a ₹25 lakh home loan at 8.5% for 20 years has an EMI of about ₹21,696. Over 20 years you pay about ₹27.07 lakh in interest, more than the loan itself.
Tips to reduce your EMI burden
- A CIBIL score above 750 usually gets you the lowest interest rates.
- A bigger down payment means a smaller loan and lower interest.
- Part-prepay whenever you get a bonus. It cuts the tenure and saves lakhs in interest.
- Keep total EMIs below 40-50% of your take-home pay.
Frequently asked questions
How is home loan EMI calculated?
Using the formula P × r × (1+r)^n ÷ ((1+r)^n − 1), where r is the monthly rate and n the number of months. This calculator does it instantly.
Does a longer tenure reduce EMI?
Yes, but you pay much more total interest. Choose the shortest tenure whose EMI you can comfortably afford.
Is home loan interest tax deductible?
In the old regime, interest up to ₹2 lakh a year on a self-occupied house is deductible under Section 24(b), and principal under 80C. The new regime does not allow these for a self-occupied house.
These tools give estimates for general guidance and are not financial or tax advice. Rates and rules can change; check official sources before making decisions.