How to Use This EMI Calculator?

Equated Monthly Installment (EMI) is the fixed amount you pay every month to repay your loan. Our calculator is designed to be the most accurate in the world.

1. Loan Amount: Enter the total price of the home/car. If you are making a down payment, use the Advanced Options to deduct it automatically.
2. Interest Rate: Enter the rate offered by your bank. (e.g., 8.5% for Home Loan, 10.5% for Car Loan).
3. Tenure: Choose how many years you need to repay. Longer tenure means smaller EMI but higher total interest.

Understanding the Amortization Schedule

Most borrowers are shocked when they see the “View Amortization Schedule” table. Why?

Because in the initial years of a loan, a major part of your EMI goes towards Interest, not Principal.

Factors Affecting Your EMI

• Loan Amount (Principal): Higher the loan, higher the EMI.
• Interest Rate: Even a 0.5% difference can save you lakhs in the long run. Always negotiate with your bank.
• Tenure: Increasing tenure reduces EMI but increases the “Total Interest Payable” drastically.

Floating vs. Fixed Interest Rate

When taking a home loan, you will be asked to choose between these two:

• Fixed Rate: The interest rate remains the same for the entire tenure. Good if market rates are currently low.
• Floating Rate: The rate changes based on the RBI Repo Rate. If rates fall, your EMI falls. If rates rise, your EMI rises. Historically, floating rates are cheaper.

Can I prepay my loan to reduce EMI?

Yes! Making a “Part Prepayment” reduces your outstanding principal. You can then choose to either reduce your EMI or reduce your Tenure. Reducing tenure saves more money.

What is a Processing Fee?

Banks charge a one-time fee (usually 0.5% to 1% of the loan amount) to process your application. This is non-refundable.