EMI Calculator

Financial experts recommend keeping your total EMI (all loans combined) below 40-50% of your monthly net income. This ensures you have enough money for other expenses and savings.

Longer tenure means lower EMI but higher total interest. Shorter tenure means higher EMI but you save on interest. Choose based on your monthly budget - ensure EMI is comfortable while trying to minimize total interest.

Yes, most loans allow prepayment. You can either reduce EMI amount or reduce tenure. Reducing tenure saves more interest. Check prepayment charges (if any) before making prepayment.

For floating rate loans, EMI can change when RBI changes repo rate. For fixed rate loans, EMI remains constant throughout the tenure. Floating rates are usually lower but carry rate change risk.

EMI = [P × R × (1+R)^N] / [(1+R)^N-1], where P = Principal loan amount, R = Monthly interest rate (Annual rate/12/100), N = Loan tenure in months. For example, ₹10 lakh at 9% for 10 years: R = 9/12/100 = 0.0075, N = 120 months, EMI = ₹12,668.

Yes, lenders charge processing fees (0.5-2% of loan amount), documentation charges, legal fees for home loans, and prepayment/foreclosure charges (typically 2-5%). Some charge late payment penalties if EMI is missed. Always factor these into total loan cost.

To reduce EMI: 1) Make larger down payment to reduce principal, 2) Negotiate better interest rates, 3) Choose longer tenure (but you'll pay more interest), 4) Make partial prepayments yearly to reduce principal, 5) Transfer loan to lender offering lower rates if applicable.

Missing EMI results in: late payment penalty (₹500-₹1000 or 2% of EMI), additional interest on overdue amount, negative impact on CIBIL score (drops by 50-70 points), loan account marked as NPA after 90 days, and potential legal action by lender. Always inform your bank in advance if facing payment difficulty.

Yes, through loan balance transfer. If you find better rates elsewhere, you can transfer your outstanding loan. New bank pays off your existing loan, and you get lower EMI. However, consider balance transfer processing fee, prepayment charges on old loan, and minimum outstanding amount criteria.

Fixed rates remain constant throughout tenure - suitable if you expect rates to rise or want predictable EMIs. Floating rates change with market conditions (RBI repo rate) - typically 0.5-1% lower than fixed rates but carry uncertainty. Choose fixed for stability, floating to potentially save on interest.

Initially, 70-80% of EMI goes toward interest and only 20-30% toward principal. Gradually, the principal component increases. By the end, 70-80% of EMI goes toward principal. This is why prepaying early saves more interest - you're reducing the high-interest early years.

For home loans: Principal repayment (up to ₹1.5 lakh) under Section 80C, and interest (up to ₹2 lakh) under Section 24(b). For first-time homebuyers, additional ₹50,000 under Section 80EEA. Car and personal loan EMIs are NOT tax deductible unless used for business purposes. Education loan interest is fully deductible under Section 80E.