EMI Calculator India (2026)
Calculate your monthly loan EMI instantly for home loans, personal loans, car loans, and education loans — with full amortization schedule, prepayment savings, and the latest 2026 bank rates.
Principal vs Interest
Yearly Breakdown
Amortization Schedule
| Year | Principal Paid | Interest Paid | Total Payment | Balance | Paid % |
|---|
* All values in ₹. Download full monthly CSV for complete schedule.
Prepayment Impact Calculator
See how extra payments reduce your interest burden and loan tenure.
No prepayment penalty on floating rate loans as per RBI mandate. Fixed rate loans may charge 1–2% of the prepaid amount.
Fixed vs Floating Interest Rate — Which Is Better in 2026?
The rate type you choose significantly affects EMI stability and total interest cost, especially for long-tenure loans like home loans.
RBI cut the repo rate to 5.25% in December 2025 and held it steady through April 2026 MPC. With further easing possible, floating rate home loans remain more advantageous for long-tenure borrowers. For personal and car loans (2–5 years), fixed rates provide better budgeting certainty. Home loan rates have already fallen to 7.50%–8.70% at major banks — a multi-year low.
Current Loan Interest Rates — Major Banks in India (2026)
What is EMI? — Complete Guide
An Equated Monthly Instalment (EMI) is a fixed monthly payment made to a lender on a specific date each month. Every EMI comprises two parts: a principal component (which reduces your outstanding loan balance) and an interest component (the bank's charge for lending money). In early months, interest dominates; as tenure progresses, the principal share steadily increases — a pattern called amortization.
EMI Formula — How It Is Calculated
The standard EMI formula used by all RBI-regulated banks and NBFCs in India:
Worked Example — ₹10 Lakh Home Loan at 8.5% for 20 Years
📌 Step-by-Step Calculation
Notice that you pay ₹10.83 lakh in interest — more than the original loan amount itself — over 20 years. This highlights the importance of choosing the shortest affordable tenure and making periodic prepayments.
5 Key Factors That Affect Your Loan EMI
Loan Amount
Higher principal means higher EMI. A ₹10L loan has half the EMI of a ₹20L loan at the same rate and tenure.
Interest Rate
Each 1% rise in rate increases EMI by 5–7% on long-tenure loans. Small rate differences compound significantly over 20 years.
Loan Tenure
Longer tenure means lower EMI but much higher total interest. A 30-year loan costs 80–100% more interest than a 15-year loan.
CIBIL Score
A score above 750 unlocks the lowest rates. Each score tier lower can add 0.5–2% to your rate, materially raising your EMI.
RBI Repo Rate
On floating loans, every 0.25% repo rate change by RBI resets your EMI via RLLR/EBLR within 3 months.
EMI Affordability — What Can You Comfortably Afford?
Most lenders use the FOIR (Fixed Obligation to Income Ratio) rule: total monthly EMIs across all loans should not exceed 40–50% of net monthly income. Enter your income below to see your safe EMI limit:
This is a guideline only. Account for rent, insurance, SIPs, and other expenses before committing to an EMI.
Home Loan EMI vs Personal Loan EMI — Key Differences
| Parameter | Home Loan | Personal Loan |
|---|---|---|
| Interest Rate (2026) | 8.40% – 10.50% | 10.50% – 22.00% |
| Typical Tenure | 10 – 30 years | 1 – 7 years |
| Security Required | Property mortgage | None (unsecured) |
| Tax Benefit | Sec 80C + Sec 24(b) | None |
| Prepayment Penalty | Nil on floating (RBI) | 1–4% (varies) |
| Processing Fee | 0.25–1% of loan | 1–3% of loan |
| Best For | Property purchase | Emergency / personal needs |
6 Proven Tips to Save Interest on Your Loan
Frequently Asked Questions
RBI and most lenders recommend keeping all EMI obligations below 40–50% of net monthly income (FOIR rule). Ideally, no single loan EMI should exceed 30–35% of take-home salary. If your income is ₹80,000/month, total EMIs across all loans should not exceed ₹32,000–₹40,000.
Yes. A longer tenure reduces monthly EMI but significantly raises total interest. A ₹30L home loan at 8.5%: 20 years → ₹26,035/month, interest ₹32.5L vs 30 years → ₹23,134/month, interest ₹53.3L. You save ₹2,901/month in EMI but pay ₹20.8L more interest over 30 years.
As of May 2026, Bank of Baroda, SBI, and Union Bank of India offer the lowest home loan rates starting from 8.40–8.50%. Actual rate depends on credit score, loan amount, employment type (salaried vs self-employed), and LTV ratio. Compare using the bank rates table above.
In 2026 with RBI repo rate at 6.25% and further rate easing expected, floating rate home loans are more advantageous for long tenures (10–30 years). Fixed rates suit short-tenure loans (personal, car, 2–5 years) where budgeting certainty is valued. Fixed rates are typically 1–2% higher than floating.
Floating rate loans are linked to External Benchmark Lending Rates (EBLR/RLLR), which banks must reset at least quarterly based on RBI's repo rate. When RBI hikes repo by 0.25%, your home loan EMI on ₹30L for 20 years rises by approximately ₹500–₹600/month. Rate cuts reduce EMI similarly. Fixed rate loans are unaffected.
Yes. Several options: (1) Make partial prepayments — the bank recalculates and lowers EMI. (2) Balance transfer to a lower-rate lender. (3) Request tenure extension from your bank (reduces EMI but increases total cost). (4) Negotiate rate revision if your CIBIL score has improved significantly since disbursal.
All RBI-regulated banks use: EMI = P × R × (1+R)ᴺ / ((1+R)ᴺ – 1), where P = Principal, R = Annual rate ÷ 1200 (monthly rate), N = Tenure in months. This Arthzo calculator uses the identical formula, so results match your bank's official computation.
A lump-sum prepayment reduces outstanding principal. You then choose: (a) Reduce tenure (keep same EMI) — saves more interest, recommended; or (b) Reduce EMI (keep same tenure) — lowers monthly burden. Option (a) is mathematically better as it minimises compounding of interest. RBI mandates zero prepayment charges on floating rate loans.
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