Calculate your loan EMI instantly. Switch between home, car and personal loan. Type any amount or use the slider — see your monthly payment in real time.
An Equated Monthly Instalment (EMI) is the fixed amount you pay every month to repay a loan — home loan, car loan, or personal loan. Each EMI has two components: a portion repays the principal and a portion pays the interest. Early in the loan, most of each EMI goes to interest. Toward the end, most goes to principal.
This structure is called an amortising loan. The EMI amount stays fixed throughout the loan tenure, giving you predictable monthly cash flow planning.
The EMI is calculated using the reducing balance method — interest applies only on the outstanding loan amount each month, not the original principal throughout.
Key insight: On a ₹30L home loan at 8.5% for 20 years, you pay ₹32.5L in interest alone — more than the loan principal itself. Reducing tenure to 15 years raises the EMI by ₹4,500/month but saves over ₹12 lakh in total interest.
Every extra rupee as down payment reduces principal and eliminates years of compound interest. A 30% down payment instead of 20% on a ₹50L home saves over ₹10 lakh in total interest.
A 15-year home loan costs far less total interest than a 20-year loan, even though the EMI is higher. If you can manage the higher monthly payment, shorter always wins mathematically.
Even ₹20,000–50,000 in extra payments once a year can cut 3–5 years off a 20-year home loan. Most banks allow prepayment on floating rate loans with zero penalty.
If your existing loan rate is more than 0.5% above current market rates, refinancing is worth evaluating. The savings over remaining tenure typically outweigh switching costs within 12–18 months.
A lower EMI from one bank may mean longer tenure and far more total interest. Always compare the total repayment amount — not just the monthly instalment — across lenders.
| Feature | Home Loan | Car Loan | Personal Loan |
|---|---|---|---|
| Typical rate | 8–9.5% p.a. | 8–12% p.a. | 10–24% p.a. |
| Max tenure | 30 years | 7 years | 5 years |
| Secured/Unsecured | Secured (property) | Secured (car) | Unsecured |
| Tax benefit | Yes — Section 80C & 24(b) | No | No |
| Prepayment penalty | None (floating rate) | 1–2% | 2–5% |
| Best for | Property purchase | Vehicle purchase only | Emergency / short-term need |