Loan Calculator: EMI & Interest

How to use this loan calculator

Start with the amount you plan to borrow, the annual interest rate quoted by your lender and the loan tenure in years. The loan calculator updates as you change these details. You can also select Calculate my EMI to move to the results.

1. Enter your loan amount. Use the amount borrowed, not the full purchase price if you are also paying a deposit. Enter at least ₹10,000 in whole rupees.
2. Set the annual interest rate. The rate is divided by 12 to calculate monthly interest. The default 9% is an illustration, not a current loan offer.
3. Choose your repayment period. Compare different tenures while keeping the amount and rate the same.
4. Try an extra monthly payment. This is added to the regular EMI from the first payment. Leave it at zero for a standard repayment estimate.

What your EMI and total interest mean

EMI stands for equated monthly instalment. Each payment includes interest and repayment of the amount borrowed, also called principal. With a reducing-balance loan, interest is calculated on the remaining balance. As that balance falls, less of each regular payment goes towards interest.

The results separate your regular EMI from your planned monthly outflow when you add extra payments. Total payable includes the principal and interest under the selected scenario. It excludes fees and other charges. The final payment may be smaller than a full monthly payment.

Loan calculator example: ₹25 lakh at 9%

Here is how the repayment period changes the cost of the same loan. These examples assume a constant 9% annual rate, monthly payments and no extra payments. Figures are rounded for display.

A longer tenure reduces the monthly EMI in this example, but increases total interest. Compare both figures before choosing a repayment period. A smaller monthly payment alone does not tell you which loan costs less overall.

How the EMI calculation works

EMI = P × r × (1 + r)ⁿ ÷ [(1 + r)ⁿ − 1]

Here, P is the amount borrowed, r is the annual percentage rate divided by 1,200, and n is the number of monthly payments. At 0% interest, EMI is simply the amount borrowed divided by the number of months. This is the standard monthly EMI formula also explained in ICICI Bank’s EMI calculation guide.

This tool keeps full precision during the calculation and rounds only the displayed amounts. It assumes monthly interest on the outstanding balance and payments at the end of each month. A lender’s daily interest method, payment dates or monthly rounding can produce different figures.

Frequently asked questions

Can I use this for a home, car or personal loan?

You can model these loans when they use fixed-rate, monthly reducing-balance repayments and fit the available inputs. The calculator does not model flat-rate interest, interest-only periods, balloon payments or changing interest rates.

Does paying extra reduce my EMI?

In this loan calculator, the regular EMI stays the same. The extra amount reduces the balance faster, so the loan can finish earlier and cost less in interest. Your lender may handle part-payments differently, so confirm how they would apply an extra payment.

Are prepayment charges included?

No. The estimate assumes extra payments are accepted each month without additional charges. Check your loan agreement for permitted payment amounts, timing and any applicable costs. Add those costs when comparing repayment options.

Why is my lender’s EMI different?

The lender may use different payment dates, rounding, a different interest calculation method or financed fees. Check that the amount, rate and tenure match. Treat the output as a planning estimate rather than a repayment quote.

Can I compare a loan payment with a savings goal?

Yes. After checking the monthly repayment, use the goal-based savings planner to explore a separate savings target. The investment growth calculator can also model illustrative investment outcomes. Borrowing costs and uncertain investment returns should not be treated as interchangeable.