Loan EMI Calculator: EMI, interest, schedule and prepayment savings

With the reducing-balance formula EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1). For ₹8 lakh at 12% a year for 3 years, r = 12 ÷ 12 ÷ 100 = 0.01 and n = 36, so the EMI is about ₹26,571 and you pay about ₹1.57 lakh of interest in all. The calculator shows the formula with your own numbers under the result.

Cutting the tenure keeps the EMI the same and ends the loan sooner; it saves more interest, because the balance falls faster. Cutting the EMI lowers what you pay each month and keeps the end date. Try both with the same extra payment and compare the interest saved. Your lender decides how it applies a part-payment, so ask which options it offers. When the rate on an EMI-based floating-rate personal loan goes up, RBI requires lenders to offer a higher EMI, a longer tenure or both, and to let you prepay in part or in full at any time.

Not on a floating-rate loan you took as an individual for a purpose other than business. For floating-rate business loans to individuals and micro and small enterprises sanctioned or renewed from 1 January 2026, commercial banks (other than small finance, regional rural and local area banks), Tier 4 urban co-operative banks, upper-layer NBFCs and All India Financial Institutions cannot charge, and small finance banks, regional rural banks, Tier 3 urban co-operative banks, State and central co-operative banks and middle-layer NBFCs cannot charge on loans up to ₹50 lakh. In other cases, such as fixed-rate loans, the lender's policy applies, and the charge must be in your sanction letter, loan agreement and Key Fact Statement.

APR, the Annual Percentage Rate, is the yearly cost of a loan with the interest rate and all other charges, such as the processing fee, worked out on the amount you actually receive. RBI asks lenders to show it in the Key Fact Statement. In RBI's own example, a ₹20,000 loan with ₹400 of fees (₹19,600 received) and ₹23,274 repaid has an APR of 17.07%. Type that loan into the comparison (15% for 24 months, fees ₹400) and our estimate gives the same 17.07%; for your loan, the lender's figure counts.

Lenders have their own ways of rounding and of counting interest, so their EMIs and schedules can differ from a plain monthly model by a few rupees or more. This calculator rounds the EMI to the rupee and each month's interest to the paisa, and says so under the result. The schedule in your Key Fact Statement is the one that counts.