EMI formula
P is the loan amount, r the monthly interest rate (annual rate ÷ 12 ÷ 100) and n the number of monthly instalments. In the early years most of the EMI goes to interest; the principal share grows over time.
Tax benefits on loans
- Home loan: principal under 80C (old regime) and interest up to ₹2 lakh under section 24(b)
- Education loan: full interest deductible under 80E
- Business loans: interest is a business expense
Check how much you can borrow with our business loan eligibility calculator.
Frequently Asked Questions
Does prepayment reduce EMI or tenure?
Either. Banks usually reduce the tenure by default; you can ask to reduce the EMI instead. Floating-rate loans to individuals have no prepayment penalty.
Is the EMI the same for the whole loan?
For fixed-rate loans yes. For floating-rate loans the EMI or tenure changes when the rate changes.
What is a good EMI-to-income ratio?
Lenders generally prefer total EMIs below 40–50% of net monthly income.
This calculator gives an estimate based on the rules shown above. Rates and limits change through budgets and notifications – confirm with a professional before you file or pay.