Enter your loan amount, interest rate, and tenure to calculate the monthly EMI and see the complete year-by-year amortisation schedule showing principal vs interest split every month.
| Year | Opening Balance | Principal Paid | Interest Paid | Total Paid | Closing Balance |
|---|
Enter your current loan details and a lump-sum prepayment amount to see exactly how much interest you save and how many months you cut from your loan tenure. Choose whether to reduce EMI or reduce tenure.
Compare two loan offers side by side — different amounts, rates, or tenures. See which costs less in total including interest and identify the true cheaper option.
Already have a loan? See how much interest you save by transferring the outstanding balance to a lender offering a lower rate. Includes transfer fee in the net saving calculation.
Find the maximum loan amount you qualify for based on your monthly income, existing EMI commitments, the lender's FOIR (Fixed Obligation to Income Ratio), and the loan terms.
EMI Calculator — Formula, Amortisation & Typical Interest Rates Explained
Understanding EMI goes beyond just the monthly number. Here's the formula, how amortisation works, and current indicative loan rates to help you plan.
The EMI Formula (Reducing Balance)
EMI = P × R × (1+R)^N ÷ [(1+R)^N − 1]
Where P = Principal, R = Monthly interest rate (Annual rate ÷ 12 ÷ 100), N = Tenure in months.
Example: ₹10 lakh at 10.5% p.a. for 5 years (60 months): R = 10.5 ÷ 12 ÷ 100 = 0.00875. EMI = 10,00,000 × 0.00875 × (1.00875)^60 ÷ [(1.00875)^60 − 1] = ₹21,494/month. Total payment = ₹12,89,640. Total interest = ₹2,89,640.
Typical Loan Interest Rates (India, 2026)
| Loan Type | Rate Range (p.a.) | Max Tenure |
|---|---|---|
| Home Loan (floating) | 8.35% – 9.65% | 30 years |
| Home Loan (fixed) | 9.5% – 11.0% | 15 years |
| Car Loan (new) | 8.7% – 13.0% | 7 years |
| Car Loan (used) | 12.5% – 18.0% | 5 years |
| Personal Loan | 10.5% – 24.0% | 5 years |
| Education Loan | 8.5% – 13.5% | 15 years |
| Business Loan | 11.0% – 26.0% | 5 years |
| Two-Wheeler Loan | 10.0% – 22.0% | 4 years |
Indicative rates based on publicly available bank data, June 2026. Actual rates depend on credit score, income, LTV ratio, and lender policies.
How Amortisation Works
In month 1, the interest component is the highest (Outstanding balance × Monthly rate). The remainder of the EMI repays principal. In month 2, the outstanding balance is lower, so less interest accrues, and more EMI goes to principal. This continues every month — the EMI stays constant, but the split shifts progressively from interest to principal. This is called the reducing (diminishing) balance method.
Prepayment vs Longer Tenure
A ₹20 lakh home loan at 8.5% for 20 years has an EMI of ₹17,356 and total interest of ₹21.65 lakh. A ₹5 lakh prepayment at the end of year 3 (reducing tenure strategy) saves approximately ₹7.8 lakh in interest and cuts about 4.5 years off the loan. The same prepayment reducing EMI saves only ₹4.2 lakh. Reducing tenure almost always saves significantly more interest than reducing EMI.