GST usually applies to lender fees and charges (e.g., processing fee), not to the principal or interest component of the EMI.

EMI Calculator for Home, Car and Personal Loans

Q: Are EMI amounts the same every month?

Yes, under standard schedules the EMI amount remains the same while the interest vs principal split changes monthly.

Q: Why can my lender's EMI differ from this tool?

Due to rounding, reset dates, or lender-specific rules like daily vs monthly cut-offs, or step-up/step-down schedules.

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Outstanding balance over time

Enter values to see the balance trend.

Amortization schedule

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Month	Opening balance	Interest	Principal	EMI	Closing balance

How to use this EMI calculator

Enter your loan amount (digits only), annual interest rate, and tenure (toggle between years and months). Your monthly EMI, total interest, and total payment update instantly. Amounts show Indian commas and an amount-in-words helper.

Reducing balance method (standard for banks and NBFCs)
Indian number format (lakh and crore)
CSV amortization schedule download

What is EMI?

EMI (Equated Monthly Instalment) is a fixed amount you pay every month to repay a loan. Each EMI contains both interest and principal. With the reducing-balance method, the interest share falls over time while the principal share rises.

EMI formula

We use the standard amortizing-loan formula with monthly compounding:

EMI formula EMI = P x r x (1 + r)^n / [(1 + r)^n - 1]

Where P = loan amount, r = monthly interest rate (annual / 12 / 100), and n = total monthly instalments. If r = 0, then EMI = P / n.

Worked example

For ₹10,00,000 at 10% p.a. over 5 years (60 months):

Monthly EMI: ~₹21,247
Total Interest: ~₹2,74,820
Total Payment: ~₹12,74,820

We round to the nearest rupee for display; a lender's rounding may differ slightly.

Reducing balance vs flat interest

Reducing balance EMI (used by banks/NBFCs): interest is calculated on the outstanding principal each month. The interest share drops every month.

Flat interest: interest is charged on the original principal for the entire tenure. EMI looks simple but usually costs more overall.

This calculator uses the reducing balance method.

Pre-EMI vs full EMI (home loans)

Pre-EMI (during construction/partial disbursal): You pay interest-only on the disbursed amount - lower outgo today, but principal does not reduce.
Full EMI: You pay principal + interest from day one - typically saves on total interest over the life of the loan.

Charges and GST - what is included in EMI?

Your EMI covers principal and interest. Lenders may also levy processing/administrative fees, documentation, late-payment, foreclosure/part-prepayment charges, etc.

In India, GST generally applies to fees/charges (e.g., processing fee), not to the principal or interest component of the EMI. Always confirm with your lender.

Factors that affect your EMI

Interest rate (fixed vs floating)
Tenure (months)
Loan amount and LTV
Credit score and income stability
Part-prepayments / foreclosure (changes EMI/tenure and reduces interest cost)

How to reduce your EMI (practical tips)

Choose a longer tenure (lowers EMI, increases total interest).
Increase down payment (home/car loans).
Improve credit score before applying.
Pick floating when rate outlook is softening; fixed for predictability.
Make part-prepayments; ask lender to reduce tenure to save interest.
Refinance/balance-transfer to a lower rate after comparing total costs.

EMI for popular loan types

Home loan EMI: Long tenures (up to 30 years) lead to lower EMI but higher total interest if rates are high.
Car loan EMI: Typically 3-7 years; rates lower than personal loans.
Personal loan EMI: 1-5 years; higher rates; prepayment terms vary.

Key terms (quick glossary)

Principal: Loan amount you borrow.
Interest: Cost of borrowing, charged on outstanding principal.
Tenure: Loan period in months.
FOIR/DBR: Share of income used for EMIs; affects eligibility.
Prepayment/Foreclosure: Early repayment that reduces interest cost.
Processing fee: One-time fee charged by lender (often plus GST).

FAQs

How is EMI calculated?

Using the amortization formula with monthly compounding: EMI = P x r x (1 + r)ⁿ / [(1 + r)ⁿ - 1].

Which is better - reducing balance or flat interest?

Reducing balance is the market standard and usually cheaper than flat interest for the same annual rate.

Are EMI amounts the same every month?

Yes (under standard schedules). The split between interest and principal changes each month.

What happens if I make a part-prepayment?

Your outstanding principal reduces. You can lower EMI or shorten tenure - shortening tenure typically saves more interest.

Is there GST on EMI?

GST applies to lender fees/charges (e.g., processing fee), not to the principal or interest portion of the EMI.

Why can my lender's EMI differ from this tool?

Due to rounding, reset dates, or lender-specific rules (daily vs monthly cut-offs, step-up/step-down schedules).