EMI Calculator
Your monthly instalment for any loan, the total interest, the year-by-year schedule, and what a repo rate change does to it.
A ₹10 lakh loan at 10% a year for 5 years costs ₹21,247 a month. Over 5 years you repay ₹12,74,823: ₹10 lakh borrowed and ₹2,74,823 of interest.
The words on this page, explained simply
New to this? Here is what each term means, in plain English.
- EMI (equated monthly instalment)
- The same amount you pay the lender every month until the loan is repaid. Each EMI pays that month's interest first; the rest reduces what you owe.
- Principal
- The amount you borrowed, or the part of it you still owe. Interest is charged on this.
- Tenure
- How long you take to repay the loan. A longer tenure means a smaller EMI but much more interest in total.
- Reducing balance
- Interest charged only on what you still owe, which shrinks every month. Banks quote home, car and personal loan rates this way.
- Repo rate
- The rate at which the RBI lends to banks. Most floating-rate home loans are linked to it, so when the RBI raises or cuts it, your loan rate follows within about three months.
- Floating rate
- A loan rate that changes with a benchmark such as the repo rate, so your EMI or tenure can change during the loan. A fixed rate stays the same.
- Repayment schedule
- The year-by-year split of your EMIs into interest and principal, and what you still owe after each year.
EMI (equated monthly instalment) is the fixed amount you pay the lender every month until the loan is repaid. Each EMI covers that month's interest first; the rest reduces the amount you owe.
How EMI is calculated
EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1), where P is the loan amount, r is the yearly rate ÷ 12 (as a decimal) and n is the number of months. Banks charge interest on the balance still owed (reducing balance), so in the early years most of each EMI is interest; by the end it is almost all principal.
EMI on ₹10 lakh at 10%
| Tenure | EMI | Total interest |
|---|---|---|
| 1 years | ₹87,916 | ₹54,991 |
| 2 years | ₹46,145 | ₹1,07,478 |
| 3 years | ₹32,267 | ₹1,61,619 |
| 5 years | ₹21,247 | ₹2,74,823 |
| 7 years | ₹16,601 | ₹3,94,499 |
| 10 years | ₹13,215 | ₹5,85,809 |
A longer loan lowers the EMI but raises the total interest: the 10-year loan costs 2.1 times the interest of the 5-year one.
What an RBI repo change does to your EMI
Most floating-rate home loans are linked to the RBI repo rate, so a 0.25% repo change usually moves your loan rate by the same 0.25% within about three months. Lenders may keep the EMI the same and lengthen the loan instead. Under RBI's August 2023 rules they must tell you and let you choose a higher EMI, a longer tenure or a mix.
The calculator shows both: how much the EMI moves for a 0.25% and 0.5% change, and how many months the loan grows if the EMI stays the same. A longer tenure costs far more interest than the small EMI rise it avoids.
See the current repo rate and the next RBI decision date on the repo rate page.
Key takeaways
- EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1), with r the monthly rate.
- Early EMIs are mostly interest; later ones mostly principal.
- A longer tenure means a smaller EMI but much more interest.
- A 0.25% repo change usually reaches floating-rate loans within a quarter.
Frequently asked questions
How is EMI calculated?
EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1), where P is the loan, r the yearly rate ÷ 12 and n the months. Interest is charged on the balance you still owe.
What is the EMI on a ₹10 lakh loan?
At 10% a year: ₹32,267 for 3 years, ₹21,247 for 5 years and ₹13,215 for 10 years.
Does a repo rate hike increase my EMI?
On a floating-rate loan linked to the repo rate, yes, usually within three months; or the lender keeps the EMI and makes the loan longer. RBI rules make the lender let you choose.
Is it better to choose a shorter tenure?
If you can afford the higher EMI, yes: you pay much less interest in total. A shorter tenure also leaves less time for rate hikes to hit you.