EMI for a ₹5 Lakh Loan

Five lakh rupees is a common size for a personal loan, a two-wheeler loan, or a small home repair. The form on this page opens with ₹5,00,000, 11% a year, and 5 years so you can see one complete illustration immediately. Eleven percent is not a market quote. Personal-loan cards are often higher than home-loan cards. Replace the rate with the one you were offered.

At this size the tenure changes the total interest quickly. Stretching a small loan over many years makes the EMI comfortable and the interest expensive. The year-wise table shows the balance after each year.

Fees sit outside the EMI. A processing fee of one or two percent is a separate cheque. This page does not add it, because folding a fee into the EMI without saying so would hide it.

If you are comparing this EMI with money you already have, look at the FD and SIP pages only as illustrations. Paying down a high-rate loan and investing at an uncertain return are not the same decision.

About this calculator

An equated monthly instalment is the fixed amount a lender collects so that a loan and its interest are cleared over an agreed tenure. Indian home loans, car loans, and personal loans usually charge interest on the outstanding principal. Early instalments contain more interest. Later instalments contain more principal.

Divide the yearly rate by 12 to get the monthly rate, and multiply the years by 12 to get the number of instalments. The formula then gives one EMI that stays the same if the rate stays the same.

To pay less interest, borrow less, negotiate the rate, or choose a shorter tenure you can still afford. Prepayment reduces the balance if the lender allows it. Compare the total interest, not only the monthly figure, when two offers look similar.

Use the related SIP and FD calculators when you are comparing a loan with money you could invest instead. Use the salary calculator if you want to see whether the EMI fits the take-home pay.

EMI formula

EMI = P × r × (1 + r)^n / ((1 + r)^n − 1)

P is the loan amount.
r is the monthly interest rate (yearly rate ÷ 12 ÷ 100).
n is the number of monthly instalments.

If the interest rate is 0, EMI is P ÷ n.

Example: ₹10 lakh for 20 years

A loan of ₹10,00,000 at 9% a year for 20 years.

Monthly EMI is ₹8,997.26. Total interest is ₹11,59,342.29. Total payment is ₹21,59,342.29.

The interest is larger than the amount borrowed because the loan runs for 20 years. Shortening the tenure raises the EMI and cuts that interest. The 9% figure is an illustration, not a bank quote.

₹10 lakh at 9% for 20 years

See the worked EMI above.

₹8,997.26

How to use

1. Enter the loan amount you will actually borrow, after any down payment.
2. Enter the yearly interest rate from the sanction letter, not a headline teaser rate.
3. Enter the tenure in years and extra months.
4. Press Calculate and read the monthly EMI before you scroll on.
5. Use the year-wise table to see how quickly the balance falls.

Important notes

• This is the standard reducing-balance EMI used by most banks and NBFCs.
• It does not add processing fees, insurance, or a moratorium.
• A floating rate will change the EMI or the tenure when the rate is reset.
• A longer tenure lowers the EMI and raises the total interest.

FAQ