EMI Calculator (India)
Monthly EMI, total interest and the amortization schedule of home, car and personal loans in India, with processing fee and prepayments.
India — reducing-balance EMI (annual rate ÷ 12), 18% GST on processing fees and the RBI (Pre-payment Charges on Loans) Directions, 2025, as checked on 10/24/2026.
Estimate for guidance only: check the official sources or a licensed professional before relying on it.
Frequently asked questions
How is the EMI calculated?
Banks use the reducing-balance formula EMI = P × r × (1 + r)^n / ((1 + r)^n − 1), where P is the loan, r the annual rate divided by 12 and n the number of months. Each month interest is charged only on the outstanding balance.
Is it better to reduce the tenure or the EMI after a prepayment?
Reducing the tenure saves more interest. Reducing the EMI keeps the closing date and lowers the monthly outgo. Most lenders reduce the tenure unless you ask otherwise.
Does GST apply to the EMI?
No. Interest and principal are not subject to GST; GST at 18% applies to fees such as the processing fee.
Related calculators: Loan Calculator, Compound Interest
How the EMI calculator works
This calculator is made for borrowers in India who want to know what a loan will really cost before signing it. Choose a home, car or personal loan and the rate and tenure are filled with typical values, which you can change. Enter the loan amount and you get the monthly EMI (equated monthly instalment), the total interest, the total payment and the date the loan closes. You can add the lender's processing fee, which is shown with its 18% GST, and plan prepayments, either one lump sum or a fixed extra amount every month. A year-wise table, a chart and a full month-wise schedule show how the balance falls, and large amounts are also written in lakh and crore.
Indian banks use the reducing-balance method. The monthly rate r is the annual rate divided by 12 and n is the number of months, so the EMI is P × r × (1 + r)^n / ((1 + r)^n − 1). Each month the interest is the opening balance times r, rounded to the paisa, and the rest of the EMI repays principal; the last EMI is adjusted to clear the loan exactly. After a prepayment you can keep the EMI and finish earlier, or keep the closing date and lower the EMI. The RBI (Pre-payment Charges on Loans) Directions, 2025 removed prepayment charges on floating-rate loans to individuals for non-business purposes sanctioned or renewed from 1 January 2026.
Example: a home loan of ₹50 lakh at 8.5% a year for 20 years has an EMI of ₹ 43,391.16. Over the 240 months you pay ₹ 54,13,879.44 (54.14 lakh) in interest, which is about 52% of everything paid. A processing fee of 0.5% adds ₹ 25,000 plus ₹ 4,500 of GST. The results are an estimate: floating rates change over time, and insurance, valuation and other charges of the lender are not included. Confirm the final figures with your lender's sanction letter.