Loan Installment Calculator – Monthly EMI Calculator for All Loans

Calculate your monthly loan installment (EMI) for home loans, personal loans, car loans, and other fixed installment loans with this comprehensive loan payment calculator. Get accurate monthly installment amounts based on loan principal (₹50,000 to ₹10 crore), interest rates (7.35%-24% p.a.), and repayment tenure (12-360 months). Whether you need a home loan installment calculator or housing loan payment calculator, this free tool provides detailed amortization schedules and helps you plan your loan repayment with precision.

💰 Monthly Installment Calculator

Calculate your monthly loan payment (EMI)

Loan Amount (₹)

₹50,000 to ₹10 Crore

Loan Type

Select loan category

Interest Rate (% p.a.)

Annual interest rate

Loan Tenure

Repayment period

Monthly Installment Results

Monthly Installment (EMI)

₹21,455

Total Interest

₹26,49,200

Total Amount Payable

₹51,49,200

Interest Rate

8.5% p.a.

Payment Breakdown

Component	Amount	%
Principal Loan Amount	₹25,00,000	48.5%
Total Interest Payable	₹26,49,200	51.5%
Interest Rate (p.a.)	8.50%	-
Loan Tenure	20 Years (240 months)	-
Loan Type	Home Loan	-
Monthly Installment	₹21,455	-
Total Repayment	₹51,49,200	100%

📊 Compare Loan Types

Interest rates and tenure comparison

Loan Type	Interest Rate Range	Max Tenure	Max Loan Amount	Best For
Home Loan	7.35% - 9.40% p.a.	30 years	No upper limit	Purchasing/constructing house
Personal Loan	10.49% - 24% p.a.	5-7 years	₹40 Lakh	Emergency, medical, wedding
Car Loan	8.5% - 15% p.a.	7 years	Up to 100% on-road	Vehicle purchase
Education Loan	8.5% - 15% p.a.	15 years	₹1.5 Crore	Higher education abroad/India
Business Loan	10% - 22% p.a.	5-7 years	₹50 Crore	Working capital, expansion
Gold Loan	8.75% - 18% p.a.	3 years	Up to 75% gold value	Short-term funding

Quick Comparison Tips:

Lowest Rate: Home loans offer the cheapest rates (7.35%-9.40%)
Longest Tenure: Home and education loans up to 30 years
Fastest Processing: Personal and gold loans (24-72 hours)
No Collateral: Personal and education loans available unsecured

📈 Loan Amortization Schedule

Year-wise payment breakdown

Loan Amount (₹)

Principal amount

Interest Rate (% p.a.)

Annual interest rate

Tenure (Years)

Loan period

Amortization Schedule

Year	Opening Balance	EMI Paid	Principal Paid	Interest Paid	Closing Balance

Understanding Loan Installments (EMI)

A loan installment, commonly known as Equated Monthly Installment (EMI), is a fixed payment amount paid by a borrower to a lender at a specified date each month. EMIs consist of both principal and interest components, calculated using a mathematical formula that ensures the loan is fully repaid by the end of the tenure. Understanding how monthly installments work helps borrowers plan their finances better and choose the right loan amount and tenure.

Monthly Installment Calculation Formula

The monthly installment for any loan is calculated using the reducing balance method:

Loan Installment (EMI) Formula:

EMI = [P × R × (1 + R)^N] / [(1 + R)^N - 1]

Where:

EMI = Equated Monthly Installment (monthly payment)
P = Principal loan amount (in rupees)
R = Monthly interest rate (Annual Rate / 12 / 100)
N = Loan tenure in months (Years × 12)

Example Monthly Installment Calculation:

Scenario: Home Loan

Loan Amount: ₹25,00,000 (₹25 Lakh)

Interest Rate: 8.5% per annum

Tenure: 20 years (240 months)

Step 1: Calculate monthly interest rate

R = 8.5 / 12 / 100 = 0.00708333

Step 2: Apply the EMI formula

EMI = [25,00,000 × 0.00708333 × (1 + 0.00708333)^240] / [(1 + 0.00708333)^240 - 1]

Step 3: Calculate the result

EMI = [25,00,000 × 0.00708333 × 5.314] / [5.314 - 1]

EMI = [94,030.15] / [4.314]

Monthly Installment (EMI) = ₹21,455

Total Amount Payable: ₹21,455 × 240 = ₹51,49,200

Total Interest Paid: ₹51,49,200 - ₹25,00,000 = ₹26,49,200

Interest as % of Principal: (₹26,49,200 / ₹25,00,000) × 100 = 105.97%

Home Loan Installment Calculator

Home loan installments are typically the most affordable among all loan types due to lower interest rates and longer tenure options. Current home loan rates in India range from 7.35% to 9.40% per annum.

Home Loan Interest Rates 2025

Bank	Interest Rate	Max Tenure	Processing Fee
State Bank of India	7.50% p.a. onwards	30 years	0.35% + GST
HDFC Bank	8.15% - 9.40% p.a.	30 years	Up to 0.50% + GST
ICICI Bank	8.75% - 9.70% p.a.	30 years	0.50% + GST
Axis Bank	8.75% - 9.40% p.a.	30 years	Up to 1% + GST
Bank of India	7.35% p.a. onwards	30 years	0.35% + GST
Punjab National Bank	7.40% - 8.90% p.a.	30 years	0.35% + GST
Canara Bank	7.50% p.a. onwards	30 years	0.50% + GST

Sample Home Loan Installments

₹50 Lakh Home Loan at 8.5% for 20 Years:

Monthly Installment: ₹42,910

Total Interest: ₹52,98,400

Total Payment: ₹1,02,98,400

₹25 Lakh Home Loan at 7.5% for 15 Years:

Monthly Installment: ₹23,203

Total Interest: ₹16,76,540

Total Payment: ₹41,76,540

Housing Loan Installment Factors

1. Principal Amount

The loan amount directly impacts your monthly installment. Higher principal = higher EMI. Consider a down payment of 20-30% to reduce the loan burden.

2. Interest Rate

Even a 0.5% difference in interest rate can save lakhs over the loan tenure. Compare rates across multiple lenders.

3. Loan Tenure

Longer tenure reduces monthly EMI but increases total interest paid. Shorter tenure saves on interest but has higher monthly burden.

4. Type of Interest Rate

Fixed Rate: EMI remains constant throughout tenure (typically 0.5-1% higher)
Floating Rate: EMI varies with market conditions (linked to MCLR/repo rate)
Hybrid: Fixed for initial years, then switches to floating

Fixed Installment Loan Calculator Benefits

Why Use a Loan Installment Calculator?

Budget Planning: Know exact monthly outflow before committing to a loan
Loan Comparison: Compare different loan amounts, rates, and tenures instantly
Affordability Check: Ensure EMI doesn't exceed 40-50% of monthly income
Interest Savings: Visualize how prepayment or shorter tenure saves money
Financial Planning: Plan other investments after accounting for EMI
Tax Benefits: Understand principal and interest split for tax deductions

How to Reduce Monthly Loan Installments

1. Increase Down Payment

Pay 20-30% upfront instead of minimum 10-15%. Reduces loan amount significantly, lowering EMI and total interest.

2. Choose Longer Tenure

Extend from 15 to 20 or 25 years to reduce monthly burden. Trade-off: Higher total interest cost.

3. Negotiate Interest Rate

Use good credit score (750+), compare multiple banks, leverage existing relationship for better rates. Even 0.25% reduction helps.

4. Make Prepayments

Use bonuses, tax refunds, or windfall gains to prepay principal. Reduces outstanding amount and saves interest.

5. Balance Transfer

If current rate is high, transfer loan to lender offering 0.5-1% lower rate. Check transfer charges vs. savings.

6. Increase Income

Side income, promotions, or rental income can make EMI more affordable relative to income.

Installment Loan Types

1. Home Loan (Housing Loan)

Lowest interest rates (7.35%-9.40%), longest tenure (up to 30 years), tax benefits on principal and interest.

2. Personal Loan

Unsecured, quick processing (24-48 hours), higher rates (10.49%-24%), tenure 1-7 years, no collateral needed.

3. Car Loan (Auto Loan)

Rates 8.5%-15%, tenure 1-7 years, finances up to 90% on-road price, car acts as collateral.

4. Education Loan

Low rates for premier institutions (8.5%-12%), moratorium period available, long tenure (15 years), tax benefits on interest.

5. Business Loan

Rates 10%-22%, secured/unsecured options, working capital or term loans, tenure up to 7 years, interest tax deductible.

Frequently Asked Questions

How to calculate monthly loan installment?

Use formula: EMI = [P × R × (1+R)^N] / [(1+R)^N - 1], where P = principal, R = monthly interest rate (annual/12/100), N = months. Example: ₹25L at 8.5% for 20 years (240 months): R = 8.5/12/100 = 0.00708333. EMI = [2500000 × 0.00708333 × (1.00708333)^240] / [(1.00708333)^240 - 1] = [2500000 × 0.00708333 × 5.314] / [4.314] = ₹21,455. Total payment = ₹21,455 × 240 = ₹51,49,200. Interest = ₹51,49,200 - ₹25,00,000 = ₹26,49,200. Use online calculators for instant results with amortization schedules.

What is a good EMI to income ratio?

Ideal EMI should be 40-50% of net monthly income maximum. Formula: EMI / Net Income × 100 ≤ 50%. Example: ₹60,000 monthly income can afford ₹24,000-₹30,000 EMI. Banks typically allow up to 50% for home loans, 40% for other loans. Lower ratio (30-40%) better for financial flexibility. Consider: Existing EMIs add up (don't exceed 50% total), emergency fund needed (6 months expenses), other financial goals (investments, insurance), lifestyle expenses, dependent family members. Higher income earners can go up to 50%, but conservative approach is 40% max. This ensures loan doesn't burden lifestyle or savings.

What is the difference between fixed and floating installment?

Fixed installment: EMI remains constant throughout tenure. Rate locked at start (typically 0.5-1% higher). Good when rates expected to rise. Pros: Predictable payments, easy budgeting, protects from rate hikes. Cons: Higher initial rate, can't benefit from rate cuts, prepayment penalties often apply. Floating installment: EMI changes with market rates (MCLR/repo rate linked). Lower initial rate. Rate revised quarterly/half-yearly. Pros: Lower rates (save 0.5-1%), benefit from rate cuts, usually nil prepayment charges. Cons: Uncertain future payments, EMI may increase with rate hikes. Most borrowers choose floating for long-term loans (home loans) and fixed for short-term (personal loans under 3 years). Consider: Loan tenure (long = floating better), rate environment (high rates = floating, low = fixed), risk tolerance.

Can I reduce EMI without increasing tenure?

Yes, several ways to reduce EMI keeping tenure same: 1. Negotiate lower interest rate (good CIBIL 750+, compare banks, existing customer benefits can get 0.25-0.5% reduction). 2. Make lump-sum prepayment (use bonus, windfall to reduce principal, ask bank to reduce EMI not tenure). 3. Balance transfer to lower rate lender (switch if rate 0.5-1% cheaper, check charges). 4. Top-up existing assets as collateral (pledge FD, property to get secured rate 2-3% lower). 5. Add co-applicant (spouse income increases eligibility, may get better rate). Example: ₹25L at 9% for 15 years = ₹25,373 EMI. After ₹5L prepayment, ₹20L at 9% = ₹20,298 EMI (saves ₹5,075/month). Or negotiate rate to 8%, EMI = ₹23,912 (saves ₹1,461/month). Cannot reduce EMI magically without either reducing principal or interest rate.

Should I choose longer or shorter loan tenure?

Depends on financial situation and goals. Longer tenure (20-30 years): Pros: Lower EMI (more affordable), better cash flow, can invest surplus. Cons: Higher total interest (almost doubles loan cost), debt for longer period, pay more overall. Best for: Young borrowers (30s), lower income, need cash for other goals, expect income to rise. Shorter tenure (10-15 years): Pros: Lower total interest (saves lakhs), debt-free faster, own asset sooner. Cons: Higher EMI (strains budget), less investment flexibility. Best for: Higher income, older borrowers (40s-50s), nearing retirement, want to minimize interest. Example: ₹25L at 8.5%: 15 years = ₹24,622 EMI, ₹19,32,000 interest total. 25 years = ₹19,987 EMI, ₹34,96,100 interest total. Saves ₹15,64,100 with shorter tenure! Middle path: Start long tenure, prepay aggressively to close early. Balance affordability with interest savings.

Is loan installment tax deductible?

Depends on loan type. Home loan: Yes! Section 80C: Principal repayment up to ₹1.5L/year. Section 24(b): Interest up to ₹2L/year (self-occupied), entire interest (let-out). First-time buyer: Additional ₹1.5L interest under Section 80EEA. Education loan: Interest fully deductible (no limit) for 8 years under Section 80E. Vehicle/personal loan: Not deductible for personal use. Business loan: Interest 100% deductible as business expense under Section 37. Example tax saving (30% slab): Home loan paying ₹2L principal + ₹3L interest annually. Deduction: ₹1.5L (principal) + ₹2L (interest) = ₹3.5L. Tax saved: ₹3.5L × 30% = ₹1,05,000 per year! Over 20 years = ₹21 lakh saved. Maintain: Loan sanction letter, interest certificate from lender, property documents, include in ITR. Consult CA for complex situations.

What happens if I miss a loan installment payment?

Missing EMI has serious consequences. Immediate impact: Late payment charges (₹500-₹1,000 per instance), penal interest (2-3% additional on overdue), outstanding amount increases. After 30 days: Reported to CIBIL, credit score drops (30-50 points per missed EMI), affects future loan eligibility. After 90 days: Loan becomes NPA (Non-Performing Asset), legal notice sent, bank may invoke collateral (home, car seized), entire loan becomes due immediately, court proceedings initiated. Credit score impact: Severe damage (score drops to 550-650 range), stays on record 7 years, difficulty getting any loan/credit card, higher interest rates even if approved. Recovery: Pay immediately with charges to minimize damage, contact bank immediately if unable to pay (may offer moratorium, restructuring), never ignore - situation worsens. Prevention: Set up auto-debit, maintain buffer amount, use emergency fund if needed, communicate with lender proactively. One missed EMI hurts score; multiple defaults = credit suicide.

Installment Payment Calculator Tips

Before Taking a Loan

Use calculator to determine affordable EMI (max 40% of income)
Compare different loan amounts and see impact on monthly budget
Test various interest rates to understand savings potential
Check how prepayment reduces tenure or EMI
Factor in processing fees and other charges

During Loan Tenure

Recalculate whenever making prepayment to see new EMI/tenure
Check if balance transfer saves money considering charges
Monitor if floating rate changes affect your EMI
Plan additional prepayments using the calculator
Verify bank's amortization schedule matches calculator results