EMI Formula
EMI = [P × R × (1+R)N] / [(1+R)N − 1]
P = Principal Loan Amount
R = Monthly Interest Rate (Annual Rate ÷ 12 ÷ 100)
N = Number of Monthly Instalments
Monthly EMI
₹43,391
Principal Amount₹50,00,000
Total Interest₹54,13,878
Total Amount₹1,04,13,878
Loan Amortization Schedule
| Year | Principal (₹) | Interest (₹) | Total Payment (₹) | Balance (₹) |
|---|
Loan Affordability Calculator
Find out how much loan you can afford based on the EMI you can pay every month.
You can afford a loan of₹57,61,508
Loan Amount₹57,61,508
Total Interest₹62,38,492
Total Payment₹1,20,00,000
Loan Prepayment Calculator
See how prepayments reduce your tenure and save lakhs in interest.
Monthly EMI₹43,391
Without Prepayment
Total Interest₹54,13,878
Total Amount₹1,04,13,878
Loan Tenure20 Yrs
With Prepayment
Total Interest₹35,00,000
Total Amount₹85,00,000
Loan Ends In13 Yrs 4 Mo
You Save
₹19,13,878
and 6 Yrs 8 Mo
How is EMI Calculated?
EMI stands for Equated Monthly Instalment. It is the fixed amount you pay every month to repay a loan. Each EMI includes both principal repayment and interest.
Home Loan
Interest rates 8.25% to 9.5% p.a. with tenures up to 30 years. Banks like SBI, HDFC, ICICI offer competitive rates based on CIBIL score.
Car Loan
Rates from 8.7% to 12% p.a. with max tenure of 7-8 years. New cars get better rates. Most banks require 10-20% down payment.
Personal Loan
Unsecured loans at 10.5% to 24% p.a. with tenure up to 5 years. No collateral needed. CIBIL score of 750+ gets best rates.
Frequently Asked Questions
What is EMI and how is it calculated?
EMI (Equated Monthly Instalment) is the fixed amount you pay to the bank every month until the loan is fully repaid. The formula is: EMI = [P × R × (1+R)N] / [(1+R)N − 1], where P = Principal, R = Monthly interest rate, N = Total months.
What is the EMI for a ₹50 lakh home loan?
At 8.5% for 20 years: ₹43,391/month. Total interest: ₹54.14 lakhs. At 8.5% for 30 years: ₹38,446/month but total interest rises to ₹88.41 lakhs. Shorter tenure saves more.
What are current home loan rates in India (2026)?
SBI: 8.25-9.25%, HDFC: 8.50-9.40%, ICICI: 8.40-9.35%, Axis: 8.55-9.50%. Rates depend on credit score, loan amount, and employment type.
How can I reduce my home loan interest?
Make annual prepayments (even ₹1L/year saves ₹19L+ on a ₹50L loan), negotiate lower rates, do balance transfer, opt for shorter tenure, or increase EMI with salary hikes. RBI mandates zero prepayment penalty on floating rate home loans.
What is the difference between flat rate and reducing balance?
Flat rate: Interest on original amount throughout. Reducing balance: Interest on outstanding balance each month. A 10% flat rate equals ~18-19% reducing rate. Indian banks use reducing balance for most loans.
How much home loan can I get on ₹50,000 salary?
Banks allow EMI up to 40-50% of net income. On ₹50K salary: max EMI ₹20-25K. At 8.5% for 20 years, this means ₹23-29 lakhs loan eligibility. Use our Loan Affordability calculator for a precise estimate.