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% p.a.
In years

Results

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Formula

EMI = [P × r × (1 + r)ⁿ] ÷ [(1 + r)ⁿ − 1]
  • P (₹) — Principal loan amount
  • r (–) — Monthly rate = annual rate ÷ 12 ÷ 100
  • n (months) — Loan tenure in months

Example: ₹20 L loan at 8.5% for 20 years → EMI ≈ ₹17,356/month

Interpreting Your Result

EMI/Income < 30%
Comfortable
Well within servicing capacity
EMI/Income 30–40%
Manageable
Leave room for other expenses
EMI/Income > 50%
Stretched
Risk of financial stress

Frequently Asked Questions

How is EMI calculated?

Using the reducing balance method: EMI = [P × r × (1+r)ⁿ] ÷ [(1+r)ⁿ − 1]. Early EMIs are mostly interest; later ones are mostly principal.

Does prepayment reduce EMI or tenure?

Most banks let you choose. Reducing tenure saves more total interest. Reducing EMI improves monthly cash flow.

What is a good EMI-to-income ratio?

Keep total EMIs below 40–50% of take-home pay. Home loan EMI alone should ideally stay below 30%.

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