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Loan EMI calculator

A ₹10 lakh loan at 10% for 5 years costs ₹21,247 a month, and ₹2.75 lakh in interest overall.

₹
₹10,000₹10 lakh₹1 crore
% a year
1%36%
years
Your monthly EMI
₹21,247 / month
60 monthly payments at 10% a year
INTEREST22%
Principal
₹10,00,000
Interest
₹2,74,823
Total you repay₹12,74,823

Try a what-if
Prepay
₹82,871 saved

Pay ₹2 lakh extra at the start of year 2 and finish 1 yr 1 mo early. Check your loan agreement for a prepayment charge.

Pay a little more
6 months sooner

Pay ₹23,372 instead of ₹21,247 and save ₹33,058 in interest.

Negotiate the rate
₹245 a month

What 9.5% instead of 10% saves you, or ₹14,711 over the loan.

See where your money goes

₹0₹5 L₹10 LYr 0Yr 1Yr 2Yr 3Yr 4Yr 5
Balance leftInterest paid so farDrag across the chart

Compare two offers

Same loan amount. Change the second offer’s rate or tenure to see the real difference.

Offer A 10% · 5 yrs

EMI₹21,247
Total interest₹2.75 lakh

Offer B%yrs

EMI₹21,124
Total interest₹2.67 lakh
Offer B saves ₹7,368 in interest and ₹123 a month.

How this is calculated

The formula

EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1)
  • P = loan amount, r = monthly rate (annual rate ÷ 12 ÷ 100), n = number of months.
  • Interest is charged each month on the balance still owed.
Standard reducing-balance method. Checked 26 September 2026.

Assumptions

  • The rate stays the same for the whole tenure.
  • Processing fees and insurance are not included.
  • The prepayment example pays a lump sum at the start of year 2 (after 12 EMIs) and keeps the EMI the same, so the loan ends sooner.
  • Any prepayment or foreclosure charge in your loan agreement is not included.
Why is my bank’s EMI slightly different?

Banks round the EMI to the rupee and settle the difference in the last instalment, and some add fees to the loan. The gap is usually a few rupees.

What if a lender quotes a “flat” rate?

A flat rate charges interest on the full loan amount for the whole tenure, even as you repay it, so for the same EMI it is a smaller number than a reducing-balance rate. This calculator uses the reducing-balance method, where interest is charged only on what you still owe. Compare offers on the same basis.

Does it work for a gold, education or business loan?

For any loan repaid in equal monthly instalments on the reducing balance, yes. If repayments start after a break, interest charged during the break is not included: enter the amount you will owe when the EMIs start. A loan repaid in one payment at the end has no EMI.

Is a longer tenure better?

It lowers the EMI but you pay more interest overall. The “Other tenures” tab above shows the trade-off for your loan.

Does prepaying help?

An early prepayment cuts the balance that interest is charged on, so it saves the most in the first months of the loan. Check your loan agreement for any prepayment or foreclosure charge before you prepay.

What changed

This calculator uses the standard EMI formula, the one lenders use for a reducing-balance loan. No government rate or limit goes into it, so no rule change affects it. Its method was last checked on 26 September 2026.

Mistakes we have fixed on any page are listed on Corrections.

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