EMI Calculator
Home Loan | Car Loan | Personal Loan | Amortization Schedule | Prepayment Impact | Loan Comparison
A Free Tool by B.A. Bedawala & Co., Chartered Accountants
Loan Details
Quick Start — Sample Loans
Click to auto-fill with typical values.₹10 Lakh Home Loan
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8.5% × 20 years
₹25 Lakh Home Loan
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8.5% × 20 years
₹50 Lakh Home Loan
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8.5% × 20 years
₹1 Crore Home Loan
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8.5% × 20 years
🔄 Reverse EMI Calculator — How Much Loan Can You Afford?
Based on your monthly EMI capacity, calculate the maximum loan you can afford.
⚖️ Loan Comparison — Compare Up to 3 Loans Side-by-Side
Compare offers from different banks to identify the best deal.
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❓ Frequently Asked Questions
What is EMI?
EMI (Equated Monthly Installment) is the fixed monthly payment made to repay a loan. Each EMI has two components: principal repayment (reduces outstanding balance) and interest (charged on outstanding balance). In early months, most of the EMI goes toward interest; in later months, more goes toward principal.
How is EMI calculated?
The standard formula is: EMI = P × r × (1+r)ⁿ / ((1+r)ⁿ − 1), where P = Principal loan amount, r = Monthly interest rate (annual rate ÷ 12 ÷ 100), n = Tenure in months. This ensures equal monthly payments while gradually reducing the principal.
Is it better to take a longer or shorter tenure loan?
Shorter tenure = higher EMI but lower total interest. Longer tenure = lower EMI but much higher total interest. For a ₹50L loan at 8.5%: 15 years gives ₹49,237 EMI with ₹38.6L interest; 30 years gives ₹38,446 EMI with ₹88.4L interest. Choose based on affordability vs total cost.
What is a safe EMI-to-income ratio?
Financial experts recommend keeping total EMIs under 40–50% of net monthly income. Banks typically approve loans where EMI + other obligations don't exceed this threshold. Higher ratios cause financial stress and reduce capacity for emergencies, savings, and other goals.
Is prepayment of home loan beneficial?
Yes, especially in the early years of the loan when the interest component of EMI is highest. Prepayment directly reduces the outstanding principal, saving significant interest. Floating-rate home loans can be prepaid without any penalty as per RBI guidelines. Use our Prepayment Impact Calculator above to see your potential savings.
Should I prepay my home loan or invest the surplus?
A rule of thumb: if your loan interest rate exceeds the post-tax expected return on investments, prepay. For example, an 8.5% home loan vs 10% pre-tax equity returns (roughly 8% post-tax on LTCG) — a close call, but prepaying offers guaranteed risk-free savings while investments carry risk. Consider our CA team for personalized analysis.
Can I claim tax benefits on home loan EMI?
Yes, under the Old Tax Regime: Section 24(b) allows deduction of interest paid up to ₹2,00,000 (self-occupied) or full interest (let-out); Section 80C allows principal repayment deduction up to ₹1,50,000. Under the New Regime, these deductions are NOT available for self-occupied property. For let-out property, interest is deductible but loss cannot offset other income.
What is the difference between fixed and floating interest rates?
Fixed rate: Interest rate remains unchanged for the entire tenure (or a fixed period). Predictable EMI but usually starts higher. Floating rate: Interest rate linked to a benchmark (RBI Repo Rate + spread) and changes periodically. Usually lower starting rate but EMI can increase if rates rise. Most home loans in India are floating-rate.
What are processing fees and other loan charges?
Apart from EMI, banks charge: Processing Fee (0.5%–2% of loan), Legal/Technical Fees, Stamp Duty, Insurance (optional but often pushed), and GST on fees. Always ask for a complete fee breakdown before signing. These are NOT included in EMI but add to overall cost of loan.
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