Finding your EMI (Equated Monthly Instalment) before taking a loan helps you budget accurately and negotiate better terms. Here are three proven methods to find your EMI — from the quickest online tool to the manual formula and Excel function.
Method 1: Use an Online EMI Calculator (Fastest)
An online EMI calculator needs just three inputs:
- Principal (P): The loan amount
- Interest Rate (R): Annual interest rate (the calculator converts to monthly)
- Tenure (N): Loan duration in months
Enter these and the calculator instantly shows EMI, total interest, and a month-by-month amortisation schedule. Use the calculator above for any loan type.
Method 2: The EMI Formula (Manual Calculation)
The standard EMI formula used by all banks:
where:
P = Principal loan amount
r = Monthly interest rate = Annual rate / 12 / 100
n = Loan tenure in months
Worked Example: ₹20 Lakh Home Loan at 8% for 20 Years
P = ₹20,00,000 | r = 8/12/100 = 0.00667 | n = 240
(1 + r)^n = (1.00667)^240 ≈ 4.926
EMI = 20,00,000 × 0.00667 × 4.926 / (4.926 − 1)
EMI = 20,00,000 × 0.03285 / 3.926
EMI = ₹16,730
Method 3: Excel / Google Sheets PMT Function
= PMT(8%/12, 240, -2000000)
= ₹16,730
Parameters: rate = annual_rate/12, nper = months, pv = loan amount (negative)
EMI at Common Loan Amounts (Reference Table)
| Loan | Tenure | @ 7.5% | @ 9% | @ 12% |
|---|---|---|---|---|
| ₹5 Lakh (personal) | 3 years | ₹15,557 | ₹15,896 | ₹16,607 |
| ₹10 Lakh (car) | 5 years | ₹20,037 | ₹20,758 | ₹22,244 |
| ₹30 Lakh (home) | 15 years | ₹27,821 | ₹30,428 | ₹36,006 |
| ₹50 Lakh (home) | 20 years | ₹40,280 | ₹44,986 | ₹55,054 |
5 Factors That Affect Your EMI
- Principal amount: Higher loan → higher EMI (linear relationship)
- Interest rate: Even 0.5% difference on ₹50L over 20 years = ₹3+ lakh in total interest
- Tenure: Longer tenure → lower EMI but much higher total interest paid
- Prepayments: Part-prepayment reduces principal, so future EMIs shrink (or tenure reduces)
- Rate resets: For floating rate loans, EMI changes when the RBI changes the repo rate