EMI Calculator India (2026)
Calculate your monthly loan EMI instantly for home, personal, car, education and gold loans — with full amortization schedule, prepayment savings, and the latest 2026 bank rates.
Quick answer
An EMI (Equated Monthly Instalment) is the fixed amount you repay each month on a loan, combining principal + interest. It is calculated as EMI = P × R × (1+R)N ÷ [(1+R)N − 1]. For example, a ₹10 lakh home loan at 8.5% for 20 years is ₹8,678 per month, with ₹10.83 lakh total interest.
- Sample EMI₹8,678/mo
- Safe EMI limit (FOIR)40–50% of income
- RBI repo rate (Jun 2026)5.25%
- Home loan rates from~8.40% p.a.
💡 During the moratorium no EMI is paid; interest accrues and is added to your principal. The EMI begins after this period and is calculated on the increased amount.
📊 Yearly Principal vs Interest
📋 Amortization Schedule
| Year | Principal Paid | Interest Paid | Total Payment | Balance | Paid % |
|---|
All values in ₹. Monthly view shows the full loan tenure (scroll to see every month) — also included in the CSV and PDF downloads.
⚡ Prepayment Impact Calculator
See how extra payments cut your interest and shorten your loan.
💡 RBI guideline: No prepayment penalty on floating-rate loans. Fixed-rate loans may charge 1–2% of the prepaid amount.
Uses the Extra Monthly EMI / Lump Sum amounts entered above to compare your original schedule against the prepayment scenario.
Fixed vs Floating Interest Rate — Which Is Better in 2026?
The rate type you choose affects EMI stability and total interest cost, especially on long-tenure loans like home loans.
🔒 Fixed Rate ~9.75%
- EMI never changes — easy to budget
- Unaffected by RBI rate hikes
- Usually 1–2% higher than floating
- Best for 2–5 year short tenures
- Does not benefit from rate cuts
📈 Floating Rate ~8.50%
- Lower starting rate than fixed
- Falls automatically on RBI rate cuts
- Zero prepayment penalty (RBI mandate)
- Best for 10–30 year long tenures
- EMI can rise on rate hikes
📌 2026 verdict: The RBI held the repo rate at 5.25% in June 2026 (neutral stance), after cutting it from 5.50% in December 2025. For long-tenure home loans, floating rates remain more advantageous; for 2–5 year personal and car loans, fixed rates give budgeting certainty. Home loan rates now start near 8.40% — a multi-year low.
Current RBI Policy Rates — June 2026
Source: RBI Monetary Policy Committee, June 2026 (held steady, neutral stance). Next review: August 2026.
| Rate | Current value | Last change |
|---|---|---|
| Repo Rate | 5.25% | Cut from 5.50% (Dec 2025) |
| Reverse Repo Rate | 3.35% | Unchanged |
| Standing Deposit Facility (SDF) | 5.00% | Corridor floor |
| Marginal Standing Facility (MSF) | 5.50% | Corridor ceiling |
| Bank Rate | 5.50% | — |
Home Loan Interest Rates — Major Banks (2026)
| Bank | Starting rate | Processing fee | Action |
|---|---|---|---|
| State Bank of India | 8.40% | 0.35% (max ₹10k) | Check eligibility → |
| Bank of Baroda | 8.40% | Up to 0.50% | Check eligibility → |
| HDFC Bank | 8.50% | Up to 0.50% | View details → |
| ICICI Bank | 8.60% | 0.50%–1% | View details → |
| Axis Bank | 8.70% | Up to 1% | View details → |
| Kotak Mahindra | 8.70% | Up to 1% | View details → |
Indicative lowest rates for eligible salaried borrowers with strong CIBIL scores. Actual rate depends on credit profile, loan amount and LTV — verify on the bank's official site.
What is EMI? — Complete Guide
An Equated Monthly Instalment (EMI) is a fixed monthly payment made to a lender on a set date each month. Every EMI has two parts: a principal component that reduces your outstanding balance, and an interest component, the bank's charge for lending. In the early months interest dominates; as the tenure progresses, the principal share rises — a pattern called amortization.
EMI Formula — How It Is Calculated
- P — Principal loan amount (₹)
- R — Monthly rate = Annual rate ÷ 1200
- N — Total months = Years × 12
- EMI — Monthly instalment payable (₹)
Worked Example — ₹10 Lakh Home Loan at 8.5% for 20 Years
| Item | Value |
|---|---|
| Principal (P) | ₹10,00,000 |
| Monthly rate (R) | 0.7083% |
| Months (N) | 240 |
| Monthly EMI | ₹8,678 |
| Total interest | ₹10,83,000 |
| Total payment | ₹20,83,000 |
You pay ₹10.83 lakh in interest — more than the loan itself — over 20 years. This shows why choosing the shortest affordable tenure and making periodic prepayments matters.
5 Key Factors That Affect Your Loan EMI
💰 Loan Amount
Higher principal means higher EMI. A ₹10L loan has half the EMI of a ₹20L loan at the same rate and tenure.
📊 Interest Rate
Each 1% rise adds 5–7% to EMI on long-tenure loans. Small differences compound heavily over 20 years.
📅 Loan Tenure
Longer tenure lowers EMI but raises total interest. A 30-year loan costs 80–100% more interest than 15 years.
⭐ CIBIL Score
A score above 750 unlocks the lowest rates. Each tier lower can add 0.5–2% to your rate.
🏦 RBI Repo Rate
On floating loans, every 0.25% repo change resets your EMI via RLLR/EBLR within three months.
EMI Affordability Risk Meter (FOIR)
Most lenders use the FOIR rule: total EMIs should not exceed 40–50% of net monthly income. Enter your figures to check your risk.
FOIR ≤ 40% is comfortable · 40–50% is the lender ceiling · above 50% is risky.
Home Loan EMI vs Personal Loan EMI — Key Differences
| Parameter | Home Loan | Personal Loan |
|---|---|---|
| Interest rate (2026) | 8.40%–10.50% | 10.50%–22.00% |
| Typical tenure | 10–30 years | 1–7 years |
| Security required | Property mortgage | None (unsecured) |
| Tax benefit | Sec 80C + Sec 24(b) | None |
| Prepayment penalty | Nil on floating (RBI) | 1–4% (varies) |
| Processing fee | 0.25%–1% | 1%–3% |
6 Proven Tips to Save Interest on Your Loan
- Choose a shorter tenure. A 15-year loan pays far less total interest than 20 years, even though the monthly EMI is higher.
- Make periodic prepayments. Any lump sum toward principal cuts future interest. One extra EMI a year can trim 2–3 years off a 20-year home loan.
- Improve your CIBIL score first. A score above 750 gets 0.5–1.5% lower rates. Pay all dues on time for 6 months before applying.
- Maximise your down payment. A higher down payment lowers principal, EMI and total interest. Aim for 20–30% on home loans.
- Consider a balance transfer. If your rate is 1%+ above market, refinancing to a cheaper lender can save lakhs.
- Time loans with RBI cycles. Taking a floating loan during an easing cycle means your EMI may fall automatically.
Frequently Asked Questions
What is a good EMI to salary ratio in India?
Most lenders follow the FOIR rule: total EMIs should stay below 40–50% of net monthly income, and ideally no single loan EMI should exceed 30–35% of take-home salary. On ₹80,000 income, total EMIs should not exceed about ₹32,000–₹40,000.
Does increasing tenure reduce EMI?
Yes. A longer tenure lowers the monthly EMI but raises total interest. On a ₹30L home loan at 8.5%, 20 years is about ₹26,035/month (₹32.5L interest) versus 30 years at about ₹23,134/month (₹53.3L interest) — roughly ₹20.8L more interest.
Which bank has the lowest home loan EMI in India in 2026?
As of 2026, Bank of Baroda, SBI and Union Bank of India offer among the lowest home loan rates, starting near 8.40–8.50%. The actual rate depends on your credit score, loan amount, employment type and LTV ratio.
Is floating EMI better than fixed EMI in 2026?
With the RBI repo rate held at 5.25% (June 2026, neutral stance), floating-rate home loans remain advantageous for long tenures of 10–30 years. Fixed rates suit short-tenure personal or car loans (2–5 years) where budgeting certainty matters. Fixed rates are typically 1–2% higher than floating.
How does the RBI repo rate affect my EMI?
Floating-rate loans are linked to external benchmark lending rates (EBLR/RLLR), which banks reset at least quarterly based on the repo rate. A 0.25% repo hike raises the EMI on a ₹30L, 20-year home loan by roughly ₹500–₹600/month; cuts reduce it similarly. Fixed-rate loans are unaffected.
Can I reduce my EMI after taking a loan?
Yes — make partial prepayments so the bank recalculates a lower EMI, transfer the balance to a lower-rate lender, request a tenure extension, or negotiate a rate revision if your CIBIL score has improved.
What is the exact EMI formula used by Indian banks?
All RBI-regulated banks use EMI = P × R × (1+R)^N / ((1+R)^N − 1), where P is principal, R is the monthly rate (annual ÷ 1200) and N is tenure in months. This calculator uses the identical formula, so results match your bank's computation.
What happens to my EMI when I make a prepayment?
A lump-sum prepayment reduces outstanding principal. You then either keep the same EMI and shorten the tenure (saves the most interest, recommended) or keep the tenure and lower the EMI. The RBI mandates zero prepayment charges on floating-rate loans.
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Disclaimer: This calculator is for educational purposes only and is not financial advice. Results are indicative; actual EMIs, rates and charges vary by lender, credit profile and loan terms. Verify with your bank before deciding. Arthzo is not a bank or NBFC.