# What is my loan EMI? Computes the EMI (equated monthly instalment) of a home, car, or personal loan in rupees, with the total interest and the month-by-month repayment schedule. - Page: https://www.acalculator.org/finance/emi-calculator - JSON spec: https://www.acalculator.org/finance/emi-calculator.json - Version: c59432e5b9e7 ## Default answer Example with the default inputs (Loan amount (₹) 2,500,000, Interest rate a year 8.5%, Tenure (years) 20, and months 0): A loan of ₹2,500,000 at 8.5% for 240 months has an EMI of ₹21,696 and total interest of ₹2,706,939. ## Inputs | Key | Label | Description | | --- | --- | --- | | amount | Loan amount (₹) | The amount borrowed, in rupees. | | rate | Interest rate a year | The yearly interest rate on reducing balance. The monthly rate is this ÷ 12. | | years | Tenure (years) | The loan tenure in whole years. | | months | and months | Extra months on top of the years. | ## Outputs | Key | Label | Description | | --- | --- | --- | | emi | Your EMI (₹) | The equated monthly instalment in rupees. | | interest | Total interest (₹) | All the interest over the tenure. | | total | Total payment (₹) | The loan amount plus all the interest: EMI × the number of months. | | principal | Principal (₹) | The loan amount, for the split of the total payment. | | share | Interest share of the total | The total interest as a percent of the total payment. | | instalments | Number of EMIs | How many monthly instalments repay the loan. | ## Method EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), with r = yearly rate ÷ 1200 and n = tenure in months. ## Assumptions - Interest is on the reducing balance: each month it is the balance × the yearly rate ÷ 12. - The rate is fixed for the whole tenure and every EMI is paid at the end of the month. - Processing fees, insurance, and prepayments are not included. - Values are not rounded between months; the page shows rupees rounded to the nearest rupee. ## Worked examples 1. amount = 2,500,000, rate = 8.5%, years = 20, months = 0 gives emi = 21,695.580834, interest = 2,706,939.400193, share = 51.98715%, instalments = 240. Source: Consumer Financial Protection Bureau, What is amortization and how could it affect my auto loan? https://www.consumerfinance.gov/ask-cfpb/what-is-amortization-and-how-could-it-affect-my-auto-loan-en-771/. 2. amount = 100,000, rate = 12%, years = 1, months = 0 gives emi = 8,884.878868, interest = 6,618.546414, total = 106,618.546414. Source: Consumer Financial Protection Bureau, What is amortization and how could it affect my auto loan? https://www.consumerfinance.gov/ask-cfpb/what-is-amortization-and-how-could-it-affect-my-auto-loan-en-771/. 3. amount = 600,000, rate = 0%, years = 4, months = 6 gives emi = 11,111.111111, interest = 0, instalments = 54. Source: Consumer Financial Protection Bureau, What is amortization and how could it affect my auto loan? https://www.consumerfinance.gov/ask-cfpb/what-is-amortization-and-how-could-it-affect-my-auto-loan-en-771/. ## FAQ ### What is an EMI? An equated monthly instalment (EMI) is the fixed amount you pay every month on a loan. Each EMI pays that month’s interest first; the rest reduces the loan, so the interest part falls and the principal part grows over the tenure. ### How is EMI calculated? EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan, r is the yearly rate ÷ 12 ÷ 100, and n is the tenure in months. A ₹25,00,000 home loan at 8.5% for 20 years has an EMI of ₹21,696. ### How can I lower my EMI? Borrow less, get a lower rate, or choose a longer tenure. A longer tenure lowers the EMI but raises the total interest: the loan above costs ₹27,06,939 in interest over 20 years. ### What happens to my EMI when a floating rate changes? The lender either raises the EMI or lengthens the tenure. Under the Reserve Bank of India’s circular of August 18, 2023 on floating rate personal loans, the lender must tell you how a rate reset affects the EMI and tenure, and offer you the choice of a higher EMI, a longer tenure, or both. ### Does the EMI include processing fees? No. Processing fees, insurance, and other charges are paid separately or deducted from the loan. They raise the true cost of the loan, so ask the lender for every charge. ### Why does the page show plain numbers, not lakh and crore? The page groups digits in thousands (25,00,000 is shown as 2,500,000). The values are the same; 1 lakh is 1,00,000 and 1 crore is 1,00,00,000. ### Is the example rate a current bank rate? No. The page shows no live rates; the default is only an example. Enter the rate your bank or lender quotes. ## Sources - Reserve Bank of India, Reset of Floating Interest Rate on Equated Monthly Instalments (EMI) based Personal Loans, RBI/2023-24/55, August 18, 2023. https://www.rbi.org.in/scripts/NotificationUser.aspx?Id=12529&Mode=0 - Consumer Financial Protection Bureau, What is amortization and how could it affect my auto loan? https://www.consumerfinance.gov/ask-cfpb/what-is-amortization-and-how-could-it-affect-my-auto-loan-en-771/ - Amortized loan (annuity) payment formula: S. A. Broverman, Mathematics of Investment and Credit, chapter 3.