EMI Calculator Guide India 2026: Home Loan, Car Loan & Personal Loan
By Sneha Patel, CA · · 11 min read
An EMI (Equated Monthly Installment) is the fixed monthly payment you make to repay a loan. Understanding how EMI is calculated helps you make better borrowing decisions and save lakhs in interest over the loan tenure.
The EMI Formula
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 installments (tenure in months)
Home Loan EMI — Current Rates 2026
As of 2026, leading Indian banks offer home loans at 8.5%–10.5% p.a. A ₹50 lakh home loan at 9% for 20 years has an EMI of approximately ₹44,986 per month. Total interest paid over 20 years: approximately ₹57.97 lakh — more than the principal itself.
Prepayment Benefits
Making a lump-sum prepayment reduces your outstanding principal, which directly reduces future interest calculations. A single prepayment of ₹5 lakh in year 5 of a 20-year home loan at 9% can reduce the remaining tenure by 2–3 years and save ₹8–10 lakh in interest.
Use DigiNow's EMI Calculator to compute your monthly payment and full amortization schedule.