Loan EMI Calculator India – Home, Car & Personal Loans
Calculate your Home, Car, or Personal Loan EMI instantly. View amortization schedules and see how prepayments reduce your loan tenure.
Planning to buy a house? Use our SIP Calculator to plan your down payment and reduce your loan burden.
Loan Details
Total Payment (Principal + Interest): ₹ 0
Amortization Schedule (Yearly)
| Year | Opening Balance | Principal Paid | Interest Paid | Closing Balance |
|---|
How to Use the Loan EMI Calculator
Whether you are planning for a Home Loan, Car Loan, or Personal Loan, knowing your exact Equated Monthly Installment (EMI) is crucial for budgeting. This calculator uses the Reducing Balance Method, which is the standard formula used by all major banks in India (SBI, HDFC, ICICI, etc.).
Simply enter your Loan Amount, Interest Rate, and Tenure. The tool will instantly show your monthly commitment and the total interest you will pay over the loan term.
Reducing Balance vs Flat Rate Method
Reducing Balance Method: Interest is calculated only on the outstanding principal amount. As you pay EMIs, the principal reduces, and so does the interest component. This is how Housing Loans work.
Flat Rate Method: Interest is calculated on the entire principal for the entire tenure. This is often used for Car Loans by some dealers and effectively doubles the real interest rate.
Note: This calculator uses the Reducing Balance Method for accuracy.
Frequently Asked Questions
How is Loan EMI calculated in India?
Banks in India use the Reducing Balance Method. The formula is EMI = [P x R x (1+R)^N]/[(1+R)^N-1], where P is Principal, R is monthly interest rate, and N is tenure in months.
Does prepayment reduce loan tenure or EMI?
In India, banks usually apply prepayments by reducing the loan tenure while keeping the EMI constant. This saves significantly more interest compared to reducing the EMI amount. This calculator assumes tenure reduction logic. You can check how making extra payments can significantly reduce your loan burden in how extra loan prepayment reduces interest.
What is the difference between Flat Rate and Reducing Balance?
A Flat Rate calculates interest on the full principal for the entire tenure (very expensive). Reducing Balance calculates interest only on the outstanding amount (standard for Home/Car loans).
Disclaimer
This calculator provides estimates based on the reducing balance method. Actual bank EMIs may vary slightly due to processing fees, advance EMIs, or different compounding frequencies. Please consult your bank for the exact offer.
Once your loan is closed, the next step is long-term wealth creation. Explore our Retirement Planning Calculator to plan your future.