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EMI Calculator

Calculate monthly EMI, total interest and the loan repayment schedule.

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Enter the loan amount to see the EMI and repayment schedule.

Sources & calculation basis1
RBI (Commercial Banks - Responsible Business Conduct) Directions, 2025, paras 4(11), 348 and 457Reserve Bank of India
An equated or fixed amount of repayments, consisting of both the principal and interest components... which result in complete amortisation of the loan.

RBI does not prescribe a formula. The calculator uses the reducing-balance method with a monthly rate of annual rate divided by 12, rounds to the nearest rupee, and reproduces the RBI worked example (₹20,000 at 15% for 24 months gives ₹970). The last instalment clears any rounding difference.

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Assumptions & limitations

EMI is calculated using the standard reducing balance method. Actual EMIs may vary slightly due to rounding, processing fees, or lender-specific calculations. Amounts are rounded to the nearest rupee, as in RBI's Key Facts Statement example. This calculator is for estimation purposes only.

How the EMI is calculated

Formula

EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)

P is the loan amount, r is the monthly rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly instalments. At 0% interest, EMI = P ÷ n.

Each month, interest is the balance still owed × r. The rest of the EMI repays principal, so interest falls and principal rises over the loan. This is the reducing balance method.

Rounding and the last instalment

  • Amounts are rounded to the nearest rupee, with 50 paise or more rounded up, as in paragraph 457 of RBI's Directions.
  • The schedule runs on the exact EMI, so the balance is zero after the last instalment. Only the amounts shown are rounded.
  • Principal and interest in a row are rounded separately, so they can add up to ₹1 more or less than the EMI.
  • At 0%, ₹ 1,00,000 over 7 months gives an EMI of ₹ 14,286. Seven rounded EMIs add up to ₹ 1,00,002, but the total payable is ₹ 1,00,000.
  • Lenders may round the EMI up and adjust the last instalment, so their figures can differ by a few rupees.

Worked example from RBI

RBI's Key Facts Statement example is a loan of ₹ 20,000 at 15% a year for 24 months. The monthly rate is 1.25%, and the EMI is ₹ 970.

RBI worked example, months 1, 2 and 24
MonthOpening BalanceInterestPrincipalEMI
1₹ 20,000₹ 250₹ 720₹ 970
2₹ 19,280₹ 241₹ 729₹ 970
24₹ 958₹ 12₹ 958₹ 970

Month 1 interest is ₹ 20,000 × 1.25% = ₹ 250, so ₹ 720 of the EMI repays principal. Over the loan, interest totals ₹ 3,274 and the total payable is ₹ 23,274. Enter these figures above to see the full schedule.

Assumptions

  • The interest rate stays the same for the whole loan.
  • Instalments are monthly, and the first is due one month after the loan is paid out.
  • Processing fees, broken-period interest, insurance, prepayments and rate changes are not included. They change the real cost of the loan.
  • Loan years count from the first EMI, not financial years.

Supported period

The EMI method does not change by year. The references are RBI (Commercial Banks - Responsible Business Conduct) Directions, 2025, as updated to 1 July 2026. RBI does not prescribe a formula; its worked example follows the reducing balance method used here.

Banks give a Key Facts Statement with an amortisation schedule for retail and MSME term loans sanctioned from 1 October 2024. Directions for NBFCs and co-operative banks were not checked.

References

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