EMI Calculator 2026 — Home, Personal & Car Loans
Move the sliders and instantly see your monthly EMI, the hidden bank cost (total interest), the true cost with fees, how much loan you can afford on your salary, and how much you can save by prepaying.
How the EMI Calculator Works
An EMI (Equated Monthly Instalment) is the fixed amount you pay your bank every month until the loan is repaid. This EMI calculator for India works for home loans, personal loans and car loans, and uses the same reducing-balance method that every Indian bank and NBFC uses — interest is charged only on the outstanding balance, which shrinks with each payment.
EMI Formula — How Banks Calculate Your Payment
The standard reducing-balance EMI formula is:
- P = principal loan amount (₹)
- r = monthly interest rate = annual rate ÷ 12 ÷ 100
- n = tenure in months
Example: a ₹20 lakh home loan at 8.5% per year for 20 years gives r = 0.00708 and n = 240 months, so the EMI is about ₹17,356 per month. Total interest payable equals (EMI × n) − P.
Why Your Real EMI Cost Is Higher Than Most Calculators Show
Ordinary calculators show only principal and interest. In reality your bank also charges a processing fee (typically 0.25%–1% of the loan), 18% GST on that fee, and sometimes a one-time loan-protection insurance premium. Use the "Add bank charges" panel above to see the true total cost of your loan — the number the bank rarely highlights.
Home Loan, Personal Loan & Car Loan EMI
Use the Home Loan EMI Calculator 2026 for housing loans from SBI, HDFC, ICICI, Axis and others (typically 8–11%, up to 30 years). Switch tabs for the Personal Loan Calculator India (typically 10–24%, 1–7 years) or to calculate car loan EMI online (typically 8–14%, 1–8 years). The math is identical; only the typical rate and tenure differ.
How Much Loan Can I Afford on My Salary?
Switch to the "How much can I borrow?" mode and enter your monthly take-home income and any existing EMIs. SmartEMI uses the standard Indian lending rule — your total EMIs should stay within about 40% of your net monthly income (the FOIR limit) — to estimate the maximum loan you can comfortably take. For example, on a ₹80,000 monthly income with no existing EMIs, a safe EMI is around ₹32,000, which supports a home loan of roughly ₹37 lakh at 8.5% over 20 years.
Home Loan Tax Savings (Section 80C & 24b)
On a home loan, you can claim the interest you pay under Section 24(b) (up to ₹2,00,000 per year) and the principal repaid under Section 80C (up to ₹1,50,000 per year) — but only under the old tax regime. Open the "Income-tax savings" panel on the home loan calculator, pick your slab, and see your estimated first-year tax saving.
How Prepayment Cuts Your Interest
When you prepay, the extra money goes straight to your outstanding principal, so future interest is charged on a smaller balance. Most Indian banks let you reduce your EMI or your tenure — reducing the tenure almost always saves more interest. The green "Interest You Could Save" figure shows your saving when you pay extra EMIs each year.
How a Moratorium Affects Your Loan
A moratorium is a payment holiday. You skip EMIs for a period, but interest keeps accruing on the outstanding principal and is added to your balance. After the moratorium, your EMI or tenure increases because you are repaying a larger amount. A moratorium helps short-term cash flow but raises the total interest you pay.
Frequently Asked Questions
How is EMI calculated?
EMI = P × r × (1+r)n ÷ [(1+r)n − 1], where P is the principal, r is the monthly rate (annual ÷ 12 ÷ 100) and n is the tenure in months. SmartEMI uses this reducing-balance method, the standard for all Indian banks.
Why is my actual EMI higher than the calculator shows?
Banks add a processing fee (often 0.25%–1%), 18% GST on that fee, and sometimes insurance. SmartEMI's "Add bank charges" panel shows the true total cost including these.
How much loan can I get on my salary?
As a rule of thumb, Indian lenders keep your total EMIs within about 40% of your net monthly income (the FOIR limit). Use the "How much can I borrow?" mode — enter your income and existing EMIs and SmartEMI estimates your maximum loan instantly.
How much tax can I save on a home loan?
Under the old tax regime you can claim home-loan interest up to ₹2,00,000/year (Section 24b) and principal up to ₹1,50,000/year (Section 80C). The home loan calculator's tax panel estimates your first-year saving based on your slab.
What is the difference between flat rate and reducing balance EMI?
A flat rate charges interest on the full original principal for the whole tenure, so the effective rate is much higher. A reducing-balance loan charges interest only on the outstanding principal, which falls each month. Always compare the reducing-balance rate and APR.
Does prepaying a loan reduce EMI or tenure?
You usually choose one: lower EMI (same tenure) or shorter tenure (same EMI). Shorter tenure saves more interest. The prepayment slider shows your interest saving for extra EMIs paid each year.
How does a moratorium affect my EMI?
You pause payments, but interest still accrues and is added to your principal, so your EMI or tenure rises afterwards and you pay more interest overall.
Is SmartEMI free to use?
Yes — completely free, no sign-up, no login. Everything is calculated in your browser; no data leaves your device.