Free EMI Calculator India — Home Loan, Car Loan & Personal Loan (2026)

Calculate your exact monthly EMI, see the full amortization schedule, find out how much interest you save with prepayment, check your loan eligibility using FOIR, and compare two loan offers — all in one tool, no login needed.

Loan Amount₹50.00L

₹1.00L₹5.00Cr

Interest Rate (per year)8.50%

6.5%15%

Loan Tenure20 yr

1 yr30 yr

Monthly EMI

₹43,391

per month for 20 years

Principal Amount

₹50.00L

Total Interest

₹54.14L

52.0% of total

Total Payment

₹1.04Cr

Interest / Principal

1.08x

times your loan amount

Principal vs Interest Breakup

Year-wise Principal vs Interest

What This EMI Calculator Can Do

🏠

5 Loan Types

Home, car, personal, education, and business loan — each with realistic Indian market presets for rate and tenure.

💡

Prepayment Calculator

See exactly how much interest you save and how many months you cut off by paying extra each month.

🧮

Amortization Schedule

Full month-by-month breakdown showing opening balance, EMI, principal paid, interest paid, and closing balance. Download as CSV.

🎯

Loan Affordability

Enter your income and existing EMIs to instantly see your FOIR, maximum eligible loan, and safe loan amount based on bank norms.

⚖️

Compare Two Loans

Put two loan offers side by side — EMI, total interest, and total payment — and see exactly which deal saves you more money.

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100% Private

All calculations happen in your browser. No data is sent to any server, no account required, no ads tracking your loan details.

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What is EMI?

EMI stands for Equated Monthly Instalment. It is the fixed amount you pay to your bank every month until your loan is fully repaid. Each EMI has two parts: interest charged on the outstanding loan balance, and principal repayment that reduces your loan balance. In the early months, most of your EMI goes toward interest. As you keep paying, the interest portion shrinks and the principal portion grows.

The standard formula used by all Indian banks is:

EMI = P × r × (1 + r)^n

─────────────────────

(1 + r)^n − 1

P = Principal loan amount
r = Monthly interest rate = Annual rate ÷ 12 ÷ 100
n = Loan tenure in months

Example: For a ₹50 lakh loan at 8.5% annual interest for 20 years — r = 8.5/12/100 = 0.00708, n = 240 months — the EMI works out to exactly ₹43,391 per month.

Current Home Loan Interest Rates in India (2026)

Home loan rates vary by lender, your CIBIL score, loan amount, and employment type. The rates below are indicative floating rates for salaried borrowers with a CIBIL score above 750. These are updated as of February 2026.

Bank / Lender	Interest Rate (p.a.)	EMI per ₹1 Lakh (20 yr)
SBI (State Bank of India)	8.50 – 9.15%	₹868 – ₹910
HDFC Bank	8.75 – 9.40%	₹884 – ₹929
ICICI Bank	8.75 – 9.30%	₹884 – ₹922
Kotak Mahindra Bank	8.75 – 9.25%	₹884 – ₹919
Axis Bank	8.75 – 9.10%	₹884 – ₹910
PNB (Punjab National Bank)	8.50 – 9.25%	₹868 – ₹919
Bank of Baroda	8.40 – 9.40%	₹862 – ₹929

Rates are indicative and subject to change. Always confirm with your bank before applying. Final rate depends on your CIBIL score, LTV ratio, and income profile.

Shorter vs Longer Tenure — The Real Cost

The single biggest factor in how much interest you pay over the life of a loan is the tenure you choose. A longer tenure reduces your monthly cash outflow but dramatically increases the total interest cost. Here is a concrete comparison for a ₹50 lakh home loan at 8.5%:

Tenure	Monthly EMI	Total Interest Paid	Total Amount Paid
10 years	₹61,993	₹24.39 lakh	₹74.39 lakh
15 years	₹49,238	₹38.63 lakh	₹88.63 lakh
20 years	₹43,391	₹54.14 lakh	₹1,04.14 lakh
25 years	₹40,260	₹70.78 lakh	₹1,20.78 lakh
30 years	₹38,446	₹88.40 lakh	₹1,38.40 lakh

Choosing 30 years over 10 years saves ₹23,547 per month in EMI, but costs you an extra ₹64 lakh in interest. If you can afford the higher EMI, a shorter tenure is almost always the better financial decision. Use the EMI Calculator above to find the right balance for your income.

How Prepayment Saves You Lakhs

Making even a small extra payment each month toward your loan principal can save a significant amount of money. The reason is simple: any extra principal you pay today reduces the balance on which interest accrues for every remaining month of the loan. The effect is compounding — in your favour.

Real Example

Loan: ₹50 lakh | Rate: 8.5% p.a. | Tenure: 20 years | Normal EMI: ₹43,391

Extra Monthly Payment	Interest Saved	Loan Closes Early By
₹2,000/month	₹4.3 lakh	1 yr 10 mo
₹5,000/month	₹9.3 lakh	4 yr 2 mo
₹10,000/month	₹15.7 lakh	7 yr 1 mo
₹20,000/month	₹23.8 lakh	11 yr 5 mo

RBI rules prohibit banks from charging prepayment penalties on floating rate home loans for individual borrowers. This means you can pay extra any time with zero penalty. Use the Prepayment tab in the calculator above to see your exact savings.

FOIR: How Banks Decide Your Loan Eligibility

FOIR (Fixed Obligation to Income Ratio) is the single most important number banks look at when deciding whether to approve your loan and for how much. It is the ratio of your total monthly EMI obligations to your net take-home income.

FOIR = (Total Monthly EMIs) ÷ (Net Monthly Income) × 100

FOIR Range	Loan Approval Outlook	Interest Rate Impact
Below 30%	Excellent — strong approval chance	Lowest rate offered
30% – 40%	Good — most banks will approve	Standard rate
40% – 50%	Acceptable — stricter scrutiny	Slightly higher
Above 50%	Very difficult — likely rejection	N/A

To improve your FOIR before applying, pay off or close any existing small loans (personal loans, credit card EMIs), apply with a co-applicant to combine incomes, or choose a longer tenure to reduce the projected EMI on the new loan. Use the Affordability tab in the calculator to calculate your current FOIR and maximum eligible loan amount instantly.

Frequently Asked Questions

What is EMI and how is it calculated?▾

EMI (Equated Monthly Instalment) is a fixed payment you make to your lender every month until the loan is repaid. It covers both the interest on the outstanding loan balance and a portion of the principal. The formula is: EMI = P × r × (1+r)^n / ((1+r)^n − 1), where P = principal loan amount, r = monthly interest rate (annual rate ÷ 12 ÷ 100), and n = total number of months. For example, a ₹50 lakh home loan at 8.5% for 20 years gives an EMI of approximately ₹43,391 per month.

How does loan tenure affect my EMI and total interest?▾

Longer tenure reduces your monthly EMI but dramatically increases the total interest you pay. For a ₹50 lakh loan at 8.5%: a 10-year tenure gives EMI ₹61,993 and total interest ₹24.4L; a 20-year tenure gives EMI ₹43,391 and total interest ₹54.1L; a 30-year tenure gives EMI ₹38,446 and total interest ₹88.4L. So stretching from 10 to 30 years saves you ₹23,547/month but costs you ₹64 lakh extra in interest over the life of the loan.

What is FOIR and why does it matter for loan eligibility?▾

FOIR stands for Fixed Obligation to Income Ratio — it is the percentage of your take-home salary that goes toward all fixed EMI payments combined. Most Indian banks require your FOIR to stay below 50%. Some premium lenders cap it at 40% for risk management. If your monthly take-home is ₹1 lakh and you already pay ₹15,000 in car loan EMI, your remaining EMI capacity is ₹35,000 (at 50% FOIR) or ₹25,000 (at 40% FOIR). This directly determines how large a home loan you can get.

How much home loan can I get on a ₹1 lakh per month salary?▾

On a ₹1 lakh take-home salary with no existing EMIs, most banks will approve a home loan where the EMI does not exceed ₹50,000 (50% FOIR). At 8.5% interest for 20 years, an EMI of ₹50,000 corresponds to a loan of approximately ₹57.5 lakh. If you already pay ₹10,000 in other EMIs, your eligible loan drops to around ₹46 lakh. A more conservative 40% FOIR (₹40,000 EMI) gives you about ₹46 lakh without other EMIs.

Should I choose a fixed or floating interest rate?▾

Floating rates (linked to RBI's repo rate) are usually 0.5–1% lower than fixed rates to start. When RBI cuts rates, your EMI or tenure reduces automatically — which has happened multiple times in India. Fixed rates give certainty but you miss out on rate cuts. For long tenures like 20–30 years, floating rates have historically been cheaper. Most borrowers in India choose floating rates for home loans. If you expect rates to rise significantly, fixing for a short period (3–5 years) can make sense.

What happens if I pay extra EMI each month?▾

Paying even a small extra amount each month toward the principal can save you lakhs in interest. For a ₹50 lakh home loan at 8.5% for 20 years, paying just ₹5,000 extra per month reduces your loan tenure by about 4 years and 2 months, and saves approximately ₹9.3 lakh in total interest. The extra payment directly reduces the outstanding principal, so less interest accrues each month. The effect is most powerful in the early years of the loan.

Should I reduce EMI or tenure when making a prepayment?▾

Almost always choose to reduce tenure, not EMI. When you make a lump sum prepayment, banks offer you two options: reduce your monthly EMI while keeping the same tenure, or keep the same EMI but shorten the tenure. Reducing tenure saves far more interest because you stop paying interest on the prepaid principal for a longer period. The monthly cash flow impact is zero since your EMI stays the same. Only choose to reduce EMI if you are facing a cash flow crunch.

What is the difference between flat rate and reducing balance interest?▾

Flat rate interest is calculated on the original principal throughout the loan tenure, regardless of how much you have repaid. Reducing balance (or diminishing balance) interest is calculated only on the outstanding loan balance, which shrinks with each EMI payment. Home loans and car loans in India use reducing balance — which is much cheaper. Personal loans from some NBFCs and private lenders sometimes quote flat rates, which can be nearly double the reducing balance equivalent. A flat rate of 8% is equivalent to approximately 14–15% on a reducing balance basis.

Can I foreclose my loan before the tenure ends?▾

Yes. RBI mandates that banks cannot charge foreclosure penalties on floating rate home loans taken by individual borrowers. For fixed rate loans and loans taken by companies, banks may charge 0–4% of the outstanding amount as a foreclosure fee. Some personal loan lenders charge 2–5% if you foreclose within 12–24 months. Always check the loan agreement for the specific prepayment terms. Foreclosing a loan early can save you significant interest, but compare this saving against the foreclosure penalty before deciding.

What happens if I miss an EMI payment?▾

Missing an EMI payment triggers a late payment penalty (typically ₹500–₹1,000 or 2% of the overdue EMI, whichever is higher), increased interest on the overdue amount, and — after 90 days of non-payment — the account is classified as a Non-Performing Asset (NPA). This immediately damages your CIBIL credit score by 50–100+ points, making future loans harder and more expensive to get. If you anticipate difficulty, contact your bank before missing the payment — most lenders offer a moratorium or restructuring option.

Is it better to invest or use extra money for loan prepayment?▾

Compare after-tax returns. If your home loan rate is 8.5%, you need an investment returning more than 8.5% post-tax to make investing worthwhile. Equity mutual funds have historically delivered 12–14% over long periods, but with volatility. Debt funds and FDs typically return 6–8%, below the home loan rate. The answer: for a home loan under 9%, invest in equity SIPs rather than prepay — especially if you are young and have a long time horizon. For personal loans at 14%+, prepayment almost always wins. Also consider Section 24(b) — you can deduct up to ₹2 lakh per year in home loan interest from taxable income, effectively reducing your real interest rate.

What documents do I need to apply for a home loan in India?▾

Identity and address proof: Aadhaar, PAN, passport, voter ID, or driving licence. Income proof for salaried: last 3 months salary slips, Form 16, last 2 years ITR, and bank statements for 6 months. Income proof for self-employed: last 2–3 years ITR with computation, profit and loss statements, balance sheet, and bank statements for 12 months. Property documents: sale agreement, NOC from society, property tax receipts, approved building plan, and encumbrance certificate. Additionally, your CIBIL score report (lenders pull this with your consent) and passport-size photographs.

Free EMI Calculator India — Home Loan, Car Loan & Personal Loan (2026)

Principal vs Interest Breakup

Year-wise Principal vs Interest

What This EMI Calculator Can Do

5 Loan Types

Prepayment Calculator

Amortization Schedule

Loan Affordability

Compare Two Loans

100% Private

Related Tools

Compound Interest Calculator

FD Calculator

HRA Exemption Calculator

SIP Calculator

What is EMI?

Current Home Loan Interest Rates in India (2026)

Shorter vs Longer Tenure — The Real Cost

How Prepayment Saves You Lakhs

FOIR: How Banks Decide Your Loan Eligibility

Frequently Asked Questions

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