What Is an EMI Calculator?
An EMI (Equated Monthly Instalment) calculator helps you figure out the exact monthly payment you'll make towards a loan. Whether it's a home loan from SBI, a personal loan from HDFC, or a car loan from ICICI — this calculator gives you the precise EMI amount before you borrow.
It uses the standard EMI formula used by all Indian banks:
EMI = [P × R × (1+R)N] / [(1+R)N – 1]
Where P = Principal (loan amount), R = Monthly interest rate, and N = Number of monthly instalments.
How to Use This Calculator
- Enter the loan amount — the total amount you plan to borrow (e.g., ₹10,00,000 for a home loan).
- Enter the interest rate — the annual rate offered by your bank (e.g., 8.5% for home loans, 10.5% for personal loans).
- Enter the tenure — loan duration in years or months.
- Add an extra payment (optional) — see how paying an additional ₹2,000/month saves you lakhs in interest.
Example: Personal Loan of ₹5,00,000
Suppose you take a personal loan of ₹5,00,000 at 12% per annum for 3 years:
- Monthly EMI: ₹16,607
- Total interest paid: ₹97,852
- Total amount payable: ₹5,97,852
If you pay an extra ₹3,000 per month, you'd save approximately ₹18,000+ in interest and close the loan 5 months earlier.
Why Use an EMI Calculator Before Borrowing?
- Budget planning — know your exact monthly outgo before committing to a loan
- Compare loan offers — plug in rates from different banks to find the cheapest option
- Avoid over-borrowing — ensure your EMI stays within 40% of your take-home salary
- Plan prepayments — see the massive difference an extra ₹2,000–₹5,000/month makes
Typical Loan Interest Rates in India (2026)
- Home Loan: 8.25% – 9.5%
- Personal Loan: 10.5% – 18%
- Car Loan: 8.5% – 12%
- Education Loan: 8% – 14%
- Gold Loan: 7% – 12%
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