Free tool
EMI calculator
Work out the monthly EMI on a home, car or personal loan, the total interest you will pay, and how much your EMI would rise if your lender passes on a 0.25 percentage point repo rate hike.
- Monthly EMI
- ₹43,391
- Total interest
- ₹54,13,879
- Total amount paid
- ₹1,04,13,879
- EMI if the rate rises 0.25 points
- ₹44,186 (+₹794)
Reducing-balance method, monthly rests. Your lender’s figure can differ slightly because of processing fees, insurance and the date your EMI starts.
Questions, answered
How is EMI calculated?
Banks use the reducing-balance formula: EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r the monthly interest rate (annual rate ÷ 12 ÷ 100) and n the number of monthly instalments. Early EMIs are mostly interest; later ones mostly repay principal.
How does a repo rate hike change my home loan EMI?
Most new floating-rate home loans are linked to an external benchmark, usually the RBI repo rate. When the repo rate rises, the lender raises your rate at the next reset, at least once every three months. Banks often extend the tenure instead of raising the EMI, which costs more interest over the life of the loan. You can ask to keep the tenure and pay a higher EMI instead.
Does a longer tenure lower the total cost?
No. A longer tenure lowers the monthly EMI but raises the total interest paid. On a ₹50 lakh loan at 8.5%, moving from 20 to 25 years cuts the EMI by about ₹3,100 a month but adds more than ₹16 lakh of interest.
Related guides and tools
- SIP calculator
- No-cost EMI explained: the hidden costs
- RBI raises the repo rate to 5.5%: what it means
- FD interest rates after the repo rate hike
- All personal finance guides
These calculators give estimates for general information. They are not financial advice; check figures with your bank or a SEBI-registered adviser before you decide.