Quick answer
EMI (Equated Monthly Instalment) is the fixed amount you pay every month to repay a loan with interest. A ₹10 lakh loan at 9.5% for 5 years has an EMI of ₹21,002, and you pay ₹2,60,112 in total interest.
Key takeaways
- Keep all EMIs together under 40–50% of your take-home pay.
- A 1% lower rate on a large loan can save more than any cashback offer.
- Floating-rate loans to individuals carry no prepayment penalty under RBI rules.
EMI formula
EMI = P × r × (1 + r)n ÷ [(1 + r)n − 1]- P = loan amount
- r = monthly interest rate = annual rate ÷ 12 ÷ 100
- n = tenure in months
The formula spreads repayment evenly. Each month, interest is charged on the outstanding balance and the rest of the EMI reduces the principal.
EMI per ₹1 lakh
| Rate | 1 yr | 3 yr | 5 yr | 7 yr | 10 yr | 15 yr | 20 yr |
|---|---|---|---|---|---|---|---|
| 8% | ₹8,699 | ₹3,134 | ₹2,028 | ₹1,559 | ₹1,213 | ₹956 | ₹836 |
| 9% | ₹8,745 | ₹3,180 | ₹2,076 | ₹1,609 | ₹1,267 | ₹1,014 | ₹900 |
| 10% | ₹8,792 | ₹3,227 | ₹2,125 | ₹1,660 | ₹1,322 | ₹1,075 | ₹965 |
| 11% | ₹8,838 | ₹3,274 | ₹2,174 | ₹1,712 | ₹1,378 | ₹1,137 | ₹1,032 |
| 12% | ₹8,885 | ₹3,321 | ₹2,224 | ₹1,765 | ₹1,435 | ₹1,200 | ₹1,101 |
| 14% | ₹8,979 | ₹3,418 | ₹2,327 | ₹1,874 | ₹1,553 | ₹1,332 | ₹1,244 |
| 16% | ₹9,073 | ₹3,516 | ₹2,432 | ₹1,986 | ₹1,675 | ₹1,469 | ₹1,391 |
Multiply by your loan amount in lakhs. Example: ₹8 lakh at 10% for 5 years = 8 × ₹2,125 = ₹17,000.
Frequently asked questions
Is EMI calculated on reducing balance?
Yes. Banks and NBFCs in India charge interest on the outstanding balance. Early EMIs are mostly interest, and later EMIs are mostly principal. The amortisation table above shows this split.
Does a longer tenure reduce EMI?
Yes, but you pay much more interest in total. A shorter tenure with a slightly higher EMI can save lakhs of rupees.
What is the EMI for ₹5 lakh for 3 years?
At 10.5% a year, the EMI is about ₹16,251. At 12% it is ₹16,607.
Can I reduce my EMI after taking a loan?
Yes: make a part-prepayment and ask the lender to reduce the EMI, move the loan to a lender with a lower rate (balance transfer), or extend the tenure. Use the Loan Prepayment Calculator to compare.
Sources & methodology
Formulas follow the standard methods used by Indian banks, fund houses and government schemes. Rates and tax rules were checked against official sources on 1 October 2026. Read our methodology.
This calculator gives an estimate for planning purposes. Actual returns, tax and eligibility depend on your situation and on product terms. It is not financial advice.