EMI Calculator

EMI (Equated Monthly Instalment) is a fixed monthly payment you make to repay a loan. It has two parts — principal repayment and interest on the outstanding balance. As months pass, the interest portion decreases and principal portion increases, but the total EMI stays the same.

EMI = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ – 1), where P = Principal loan amount, r = Monthly interest rate (annual rate ÷ 12 ÷ 100), n = Number of monthly instalments. Example: For a ₹10 lakh loan at 10% for 5 years — r = 10/1200 = 0.00833, n = 60 months — EMI = ₹21,247.

CIBIL score is a 3-digit number (300–900) that reflects your creditworthiness based on past loan repayments and credit card history. A score above 750 gets you the best interest rates. Below 650, most banks reject applications outright. Check your CIBIL score for free once a year at cibil.com.

Home loan: 650–700 minimum, 750+ for best rates. Car loan: 600+ minimum. Personal loan: 700+ minimum (stricter as it's unsecured). Some NBFCs give loans at lower scores but charge higher interest (16–24%).

Missing an EMI triggers: (1) Late payment penalty of 1–3% of EMI, (2) CIBIL score drops by 50–100 points per missed payment, (3) After 90 days it becomes an NPA (Non-Performing Asset) which severely damages your credit history for 7 years. Contact your bank immediately if you foresee a missed payment — most will restructure the loan.

Prepayment means paying more than your EMI — either partially (part-payment) or closing the entire loan early (foreclosure). Part-payment reduces your outstanding principal, saving significant interest. Example: A ₹50 lakh home loan at 8.5% for 20 years has ₹54 lakh in interest. A ₹2 lakh prepayment in Year 3 saves around ₹5–6 lakh in total interest. Banks may charge a prepayment penalty of 2–5% for fixed-rate loans. Floating-rate loans (home loans) have zero prepayment penalty by RBI rules.

Fixed rate stays constant throughout the loan tenure — predictable but usually 0.5–1% higher than floating. Floating rate changes with RBI's repo rate — lower when rates fall, higher when rates rise. In 2026, with RBI in a rate-cutting cycle (repo rate at 5.25%), floating rate is recommended for home loans. For personal/car loans (short tenure 1–5 years), fixed rate avoids uncertainty.

Banks use FOIR (Fixed Obligation to Income Ratio) — your total EMIs should not exceed 40–50% of take-home salary. Rule of thumb: you can get a loan of 60× your net monthly salary for home loans and 10–15× for personal loans. Example: ₹50,000 take-home salary → home loan eligibility ~₹30–35 lakh (EMI ~₹20,000–25,000/month).

Processing fee is a one-time charge (0.5–3% of loan amount) deducted upfront when the loan is disbursed. Prepayment penalty is charged if you repay before tenure ends — typically 2–5% of prepaid amount for fixed-rate loans. Floating-rate home loans have zero prepayment penalty per RBI guidelines since 2012.

An amortization schedule is a month-by-month table showing how each EMI is split between principal and interest. In early months, most of your EMI goes towards interest. In later months, more goes towards principal. This is why prepaying in the first few years saves maximum interest. You can see your full amortization schedule above by clicking 'Month-wise'.

Yes, in two ways. (1) Applying for a loan creates a 'hard inquiry' on your CIBIL, which drops your score by 5–10 points temporarily. Multiple applications in a short time hurt more. (2) A running loan, if paid on time every month, actually improves your CIBIL score over time. Closing a loan successfully also boosts your score.

FOIR is the percentage of your income that goes towards all loan EMIs combined (including the new loan you're applying for). Banks approve loans only if FOIR stays below 40–55%. Example: Monthly income ₹60,000, existing car EMI ₹8,000 → available FOIR = ₹60,000 × 50% – ₹8,000 = ₹22,000. This means you can take a new loan where EMI doesn't exceed ₹22,000.