EMI Calculator
Calculate your monthly EMI for any loan and see how interest vs principal is distributed over time.
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EMI Calculator: Understanding Loan Payments in India
Whether buying a home, car, or taking a personal loan, understanding EMI is crucial. India's home loan market alone exceeds ₹27 lakh crore.
How EMI is Calculated
Each EMI has principal and interest components. In early years, most goes towards interest. Prepaying in years 1-7 saves the most interest.
Home Loan Planning
Current rates range 8-10%. For ₹50L at 8.5% for 20 years, EMI is ~₹43,391 with ₹54.1L total interest — more than the loan itself!
The 40% EMI Rule
Total EMIs should not exceed 40% of monthly income. Plan investments alongside using our SIP calculator.
Tax Benefits
Home loans give deductions under 80C (principal, ₹1.5L) and 24(b) (interest, ₹2L). Check savings using our income tax calculator.
Track Loan Payments
Monitor EMIs alongside expenses with Vitta, our free expense tracker.
Frequently Asked Questions
What is EMI?+
EMI (Equated Monthly Instalment) is a fixed monthly payment to repay a loan. Each EMI has two parts: principal repayment and interest payment.
Is shorter or longer tenure better?+
Shorter tenure means higher EMI but much less total interest. A ₹50L home loan at 8.5% costs ₹42.6L interest over 20 years but only ₹17.5L over 10 years.
How much home loan can I afford?+
Keep total EMIs under 40% of net monthly income. For ₹1 lakh salary, EMI of ₹40,000-50,000 corresponds to roughly ₹45-55 lakh loan at current rates.
Should I prepay or invest?+
If your loan rate is 8-9% and equity returns 12%, investing may be better. A balanced approach: prepay enough to reduce tenure, invest the rest in SIPs.