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EMI Calculator — Home, Car & Personal Loan

Reducing-balance method · EMI = P·i·(1+i)ⁿ ÷ [(1+i)ⁿ − 1] · Home loan interest: Section 24(b) deduction

Loan EMI Computation
Monthly rest, reducing balance
Actual bank EMI may differ marginally due to disbursement date, processing fees and rounding. Home loan interest may qualify for deduction u/s 24(b) (old regime; let-out property under both regimes).
Generated on · TheToolsWala.com · For educational purposes only.

About This Tool

The EMI Calculator computes the Equated Monthly Instalment (EMI) for home loans, car loans, and personal loans using the reducing-balance method. The formula used is: EMI = P × i × (1+i)ⁿ ÷ [(1+i)ⁿ − 1], where P is the principal, i is the monthly interest rate, and n is the number of months. It shows the monthly EMI, total interest payable over the loan tenure, and total amount paid.

How to Use

  1. Enter the loan amount (principal) in rupees.
  2. Enter the interest rate in % per annum (e.g. 8.5 for 8.5% p.a.).
  3. Enter the loan tenure in years (e.g. 20 for a 20-year home loan).
  4. Click Compute EMI — the tool shows monthly EMI, total interest, and total payment.

Frequently Asked Questions

What interest rate should I use for a home loan?

Current home loan rates (2026) typically range from 8.5% to 10% p.a. for floating rate loans. Car loans are 9–12% and personal loans 12–24%. Enter the rate quoted by your bank.

Does EMI change if interest rate changes?

For floating rate loans, the bank may revise your EMI or tenure when the benchmark rate (EBLR) changes. For fixed rate loans, the EMI remains constant throughout the tenure.

Can I claim tax deduction on home loan EMI?

The principal repayment component of home loan EMI is deductible under Section 80C (up to ₹1.5 lakh, old regime only). Interest component is deductible under Section 24(b) up to ₹2 lakh for self-occupied property.

Why does my bank's EMI differ slightly from this calculator?

Banks may use different day-count conventions, charge processing fees, or round differently. This calculator uses standard monthly-rest reducing-balance method.