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Loan EMI calculator

Monthly instalment for a home, car or personal loan on a reducing balance.

Today's interest rates

RBI policy repo rate 5.50% Changed on 7 Oct 2026
Loan or depositInterest rate (approx.)

Approximate ranges for good-credit borrowers at major banks, worked out from the repo rate plus the margin banks usually add. Your actual rate depends on the bank, your credit score, income and loan amount. Repo rate source: Reserve Bank of India.

The RBI repo rate and your loan

The repo rate is the rate at which the Reserve Bank of India lends to banks. Since October 2019, new floating-rate home loans, and many vehicle and business loans, are linked to an external benchmark, usually the repo rate. Your rate is the repo rate plus a fixed margin (spread) set by your bank, so it moves when the RBI changes the repo rate. The RBI's Monetary Policy Committee reviews the rate six times a year.

How the EMI is calculated

Banks in India use the reducing-balance method. Each month part of your EMI pays interest on the loan still outstanding, and the rest reduces the principal. The formula is:

EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1)

Here P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly instalments.

Example

A ₹25 lakh home loan at 8.5% for 20 years has an EMI of about ₹21,696. Over 240 months you repay about ₹52 lakh, so the interest alone is roughly ₹27 lakh, more than the loan itself.

Frequently asked questions

Does a longer tenure reduce my EMI?

Yes, but you pay much more interest overall. Compare the total interest figure for 15 and 20 years before choosing.

Does part-prepayment help?

Yes. Money you prepay goes straight to principal, which cuts the interest on every later instalment. Most banks do not charge prepayment penalties on floating-rate home loans for individuals.

Are processing fees included?

No. This calculator shows the EMI on the loan amount only. Add processing fees and insurance separately when comparing lenders.

How does the RBI repo rate affect my EMI?

Most new floating-rate home loans are linked to the repo rate. When the RBI raises it, banks raise these loan rates by the same amount, usually within three months, and either your EMI or your tenure goes up. A 0.25% rise on a ₹25 lakh, 20-year loan at 8.5% adds roughly ₹400 a month.

How are the approximate rates worked out?

Each range is the current repo rate plus the margin banks typically charge for that product. Your own rate can be higher or lower depending on the bank, your credit score and income.

Sources

Built and checked by Satya Saladi · Last updated 15 Oct 2026