What this estimate uses
Loan amount, Interest rate (p.a.), Loan tenure.
Loans calculator
EMI Calculator India: Loan EMI & Total Interest
What will this loan cost each month?
Calculate monthly EMI, total interest and repayment for a reducing-balance loan.
Your estimate
Live result
Monthly EMI
—How it works
A useful estimate, with the assumptions out in the open.
The interest rate stays fixed, interest is charged on the reducing balance, and the loan is repaid in equal monthly instalments. Fees, insurance and taxes are excluded.
This result is an educational estimate. Rates, taxes, fees, product rules, and market returns can change.
India-focused guide
What EMI and total interest will I pay for a loan at a given rate and tenure?
Enter the loan amount, annual interest rate and tenure to estimate the fixed monthly EMI, total interest and total repayment using the reducing-balance formula.
Important assumption
The interest rate stays fixed, interest is charged on the reducing balance, and the loan is repaid in equal monthly instalments. Fees, insurance and taxes are excluded.
Created and maintained byAll Tool Central
Formula and content reviewed16 October 2026
See how estimates are builtCalculation methodology
Detailed guide
Understand the result before using it.
This EMI calculator estimates the fixed monthly payment, total interest and total repayment for a reducing-balance loan. It is suitable for testing a home, car, personal or other instalment loan when the rate is assumed to remain unchanged.
How the reducing-balance EMI is calculated
Each EMI contains interest on the outstanding balance plus principal repayment. Early instalments normally contain more interest; as principal falls, a larger share of the same EMI repays principal.
The annual rate is divided by 12 and the tenure is converted to months. The estimate excludes processing fees, insurance, legal charges, taxes, late fees and any rate reset.
FormulaEMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is principal, r is the monthly rate and n is the number of months
Example: ₹35 lakh for 20 years
A small rate difference changes both the monthly commitment and the lifetime interest because it applies across 240 instalments. These scenarios use the same principal and tenure with no fees or prepayments.
| Annual rate | Monthly EMI | Total interest | Total repayment |
|---|---|---|---|
| 8.00% | ₹29,275 | ₹35.26 lakh | ₹70.26 lakh |
| 8.50% | ₹30,374 | ₹37.90 lakh | ₹72.90 lakh |
| 9.00% | ₹31,490 | ₹40.58 lakh | ₹75.58 lakh |
Fixed-rate estimate versus a floating-rate loan
This page keeps the entered rate constant. In a floating-rate loan, a benchmark reset can increase the EMI, extend the tenure or do both. RBI guidance says regulated lenders should communicate the impact and provide applicable options when rates reset.
Compare the lender’s Key Facts Statement and annual percentage rate, not only the advertised interest rate. The KFS can reveal charges that this calculator deliberately does not include.
Use the estimate before accepting a loan
- Test at least one higher-rate scenario for a floating-rate loan.
- Compare total interest, not only whether the EMI fits this month’s budget.
- Check whether a longer tenure creates an acceptable lifetime cost.
- Use the prepayment calculator to model an extra principal payment separately.
- Confirm the final schedule, fees and reset terms with the lender’s documents.
Common questions
Frequently asked questions
Is EMI calculated on a flat rate or reducing balance?
This calculator uses the reducing-balance method. Interest is charged on the outstanding principal each month, which is different from quoting interest on the original principal for the full tenure.
Why is total interest so high on a long loan?
A longer tenure lowers the monthly EMI but keeps the balance outstanding for more months. That can materially increase total interest even when the annual rate is unchanged.
Will a floating-rate EMI remain the same?
Not necessarily. A lender may change the EMI, the number of instalments or both after a benchmark reset, subject to the loan terms and applicable RBI requirements.
Does the result include processing fees and insurance?
No. The result covers principal and interest only. Add fees, taxes, insurance and other compulsory costs when comparing the true cost of loan offers.
Continue planning
Compare the next part of the decision.
Loan Prepayment CalculatorSee how one extra payment can shorten your loan and reduce interest.
Flat vs Reducing Loan CalculatorCompare a flat-rate quote with a reducing-balance loan on monthly and total cost.
Debt-to-Income CalculatorMeasure how much of your monthly income is committed to debt repayments.