EMI Calculator India

EMI = P × r × (1+r)ⁿ ÷ [(1+r)ⁿ – 1], where P = Principal loan amount, r = Monthly interest rate (Annual Rate ÷ 12 ÷ 100), n = Loan tenure in months. Example: ₹10 lakh home loan at 8.5% for 20 years = EMI of ₹8,678/month.

An amortization schedule shows the breakup of each EMI into principal and interest components over the entire loan tenure. In early months, most of the EMI goes towards interest. As the loan matures, the principal component increases. Finosutra's EMI calculator shows the full schedule month-by-month.

You can reduce your EMI by: (1) making a higher down payment to reduce principal, (2) negotiating a lower interest rate with your bank, (3) extending the loan tenure (though this increases total interest paid), or (4) making part-prepayments to reduce outstanding principal.

Flat rate interest is calculated on the original principal throughout the loan — making the effective interest rate much higher. Reducing balance (diminishing balance) interest is calculated on the outstanding principal each month — this is the standard method used by banks and shown in this calculator.

Banks usually give you the choice. Reducing tenure (keeping EMI the same) saves significantly more interest overall. Reducing EMI (keeping tenure the same) gives you monthly cash flow relief. Most financial advisors recommend reducing tenure for maximum savings.