EMI Calculator — Home, Personal & Car Loan (India 2026)
Calculate your monthly EMI, total interest, and full amortization schedule. Select your loan type to get current rate ranges.
How EMI Is Calculated
The EMI (Equated Monthly Installment) is calculated using the reducing-balance formula used by every RBI-regulated bank in India:
Where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the tenure in months. In the early months, most of your EMI goes toward interest; by the final year, it's almost entirely principal. This is called amortisation.
Example: ₹50,00,000 Home Loan at 8.5% for 20 Years
Using the formula above: Monthly EMI ≈ ₹43,391 | Total Interest ≈ ₹54.1 Lakh | Total Payment ≈ ₹1.04 Crore
Current Loan Interest Rates in India (2026)
| Loan Type | Typical Rate Range | Common Tenure | Max Amount |
|---|---|---|---|
| Home Loan | 8.0% – 10.5% | 10 – 30 years | Up to ₹10 Cr+ |
| Personal Loan | 10.5% – 24% | 1 – 5 years | Up to ₹50 Lakh |
| Car / Vehicle Loan | 8.5% – 13% | 1 – 7 years | Up to ₹1 Cr |
| Education Loan | 8.5% – 15% | 5 – 15 years | Up to ₹1.5 Cr |
| Gold Loan | 9% – 18% | 1 – 3 years | Up to ₹75 Lakh |
| Business Loan | 11% – 22% | 1 – 7 years | Up to ₹20 Cr |
Frequently Asked Questions
What is EMI?
EMI stands for Equated Monthly Installment — the fixed amount you pay every month to repay a loan. Each EMI has an interest portion and a principal portion.
How is EMI calculated for home loans?
Home loan EMI uses the same reducing-balance formula. For a ₹50 lakh loan at 8.5% for 20 years, the EMI is approximately ₹43,391 per month.
Can I prepay my loan?
Yes. Most Indian banks allow partial or full prepayment. For floating-rate home loans, RBI mandates zero prepayment penalty. For fixed-rate loans, a nominal charge may apply.
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