Repayment schedule
| Year | Principal paid | Interest paid | Balance |
|---|
This calculator gives an estimate for a reducing-balance loan. Actual EMI, interest rate, processing fees and approval depend on the bank or NBFC. Credway.in is not a lender and does not offer loans directly. We are a loan assistance platform that connects borrowers with banks, NBFCs and verified DSAs. We do not charge any fee from customers.
What is an EMI?
EMI stands for Equated Monthly Instalment. It is the fixed amount you pay your bank or NBFC every month until your loan is fully repaid. Each EMI has two parts: the interest on your outstanding loan, and a part that reduces your principal. In the early years, most of your EMI goes towards interest. Over time, more of it goes towards the principal.
How to use this EMI calculator
- Choose your loan type: personal, home, car, education, business, loan against property or gold loan.
- Set the loan amount with the slider, or type it in the box.
- Enter the yearly interest rate offered by your lender.
- Choose the tenure in years or months.
Your monthly EMI, total interest and total payment update instantly. The repayment schedule below the calculator shows how much principal and interest you pay each year or each month.
EMI formula
EMI = P × r × (1 + r)n ÷ [(1 + r)n − 1]
Here P is the loan amount, r is the monthly interest rate (yearly rate ÷ 12 ÷ 100), and n is the number of monthly instalments. This calculator uses the reducing balance method, which is how most banks and NBFCs in India calculate EMIs on personal, home and car loans.
EMI examples
| Loan | Rate | Tenure | Approx. EMI | Total interest |
|---|---|---|---|---|
| ₹10 lakh personal loan | 10% | 5 years | ₹21,247 | ₹2.75 lakh |
| ₹50 lakh home loan | 8.5% | 20 years | ₹43,391 | ₹54.1 lakh |
These are examples only. Your real rate depends on your lender, your credit score, your income and the type of loan.
Ways to reduce your EMI burden
- Make a larger down payment so you borrow less.
- Choose a longer tenure for a lower EMI. Remember that total interest will be higher.
- Improve your credit score before applying. A better score can help you get a lower rate.
- Compare offers from several banks and NBFCs, including processing fees and prepayment charges.
- Part-prepay when you can. Extra payments reduce your principal and save interest. Check your lender’s prepayment rules first.
How much EMI can you afford?
As a rule of thumb, many lenders prefer that your total monthly EMIs stay within about 40 to 50 percent of your monthly income. The exact limit differs by lender. Use our loan eligibility calculator to estimate how much you may be able to borrow.
Frequently asked questions
How is EMI calculated on a loan?
EMI is calculated with the formula above, using the loan amount, the monthly interest rate and the number of months. This calculator does the maths for you instantly.
Does a longer tenure reduce my EMI?
Yes, a longer tenure lowers the monthly EMI, but you pay interest for more months, so the total interest cost goes up.
Is the EMI the same for home loan and personal loan?
The formula is the same. The EMI differs because home loans usually have lower interest rates and longer tenures than personal loans.
What is the difference between reducing balance and flat rate?
On a reducing balance loan, interest is charged only on the amount still outstanding. On a flat rate loan, interest is charged on the full original amount for the whole tenure, so the effective cost is higher. This calculator uses the reducing balance method.
Does the EMI include processing fees and insurance?
No. The calculator shows only principal and interest. Processing fees, GST, insurance and other charges are extra and vary by lender.
Can I trust the result as my final EMI?
It is a close estimate. Your lender’s final EMI can differ slightly because of rounding, the date of your first instalment and any fees, so please confirm with the lender.
Related: Loan eligibility calculator · Personal loan guide · How Credway works