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Loan EMI Calculator (Home, Car) | CompareMoney
Calculate monthly EMI, total interest payable, and full amortization schedule for home loans, auto loans, and personal loans.
Reviewed by Financial Analyst & CA Desk
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Last Updated: March 2025 (FY 2025-26 Budget Slabs)
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Regulatory Alignment: CBDT / RBI / SEBI
Baseline Inputs
FY 2025-26
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Projection Summary
Assessment Year
AY 2026-27
Algorithm Status
Verified 100%
Detailed Yearly Breakdown
Reducing Balance Loan Amortization Formula
Mathematical StandardEMI = [P × r × (1 + r)^n] / [(1 + r)^n - 1]
Where: P = Loan Principal, r = Monthly Interest Rate, n = Total Tenure in Months
Standard reducing balance formula utilized by Indian commercial banks and housing finance corporations (HFCs).
Frequently Asked Financial Questions (FAQs)
How is monthly home loan EMI calculated by Indian banks? ▼
Banks use the reducing balance amortization formula: EMI = [P × r × (1+r)^n] / [(1+r)^n - 1], where P is Principal, r is the monthly interest rate, and n is total tenure in months.
How does making loan prepayments reduce total interest? ▼
Every rupee paid as a prepayment directly reduces the outstanding principal balance. Because future monthly interest is computed on the reduced principal, prepaying early saves massive compounding interest and significantly shortens tenure.
What is the Interest-Free Home Loan (EMI + SIP offset) strategy? ▼
By starting a parallel equity mutual fund SIP equal to 10% to 15% of your monthly home loan EMI, the compounded growth of the SIP over the 15-20 year loan tenure often matches or exceeds 100% of the total interest paid to the bank.
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Interest-Free Home Loan (EMI + SIP Offset)
Discover how starting a parallel mutual fund SIP equal to 10-15% of your EMI recovers 100% of your total home loan interest cost.
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Calculate interest savings and tenure reduction when making lump-sum or extra recurring part-payments towards your home loan.
Home Loan Eligibility Calculator
Calculate the maximum home loan amount banks will sanction based on your monthly income, existing EMIs (FOIR), and loan tenure.
