EMI Calculator India | Home Loan, Car Loan & Personal Loan EMI | Tools Calculator
Free EMI calculator for India. Calculate monthly EMI, total interest & amortization schedule for home loan, car loan & personal loan instantly.
EMI Mathematical Formula & Step-by-Step Derivation
EMI = [P × R × (1+R)^N] / [(1+R)^N – 1]
- P (Principal): Total loan amount sanctioned
- R (Monthly Rate): Annual Interest Rate ÷ 12 ÷ 100
- N (Tenure in Months): Loan duration in years × 12
Example: A ₹50,00,000 home loan at 8.5% annual interest for a 20-year tenure (240 months) results in a monthly EMI of ₹43,391, total interest payable of ₹54,13,867, and total loan repayment of ₹1,04,13,867.
Benchmark Bank Home Loan & Personal Loan Interest Rates
- State Bank of India (SBI): 8.40% – 9.15% p.a. | Zero processing fee promotional campaigns
- HDFC Bank: 8.50% – 9.40% p.a. | Rapid digital sanction and flexible part-prepayment
- ICICI Bank: 8.75% – 9.50% p.a. | Instant online approval for pre-approved customers
- Axis Bank & Kotak Mahindra Bank: 8.70% – 9.60% p.a. | Competitive balance transfer terms
How Prepayment and Extra EMI Reduces Loan Tenure
Making just one extra EMI payment each year or part-prepaying 5% of your outstanding principal balance every year can reduce a 20-year home loan by 4.5 to 7 years, saving lakhs of rupees in interest.
Frequently Asked Questions (FAQs)
- What is the EMI for a ₹30 lakh home loan at 8.5% for 20 years?
- The monthly EMI is ₹26,035. Total interest payable over 20 years is ₹32,48,320, making total repayment amount ₹62,48,320.
- What is the FOIR rule used by banks?
- Fixed Obligation to Income Ratio (FOIR) restricts your total monthly EMIs to 40%–50% of your net monthly take-home salary to ensure you can comfortably service your debt.
- How are reducing balance interest loans calculated?
- In a reducing balance loan, every monthly EMI payment contains both principal and interest components. As principal reduces each month, future interest is charged only on the remaining balance.