Calculate monthly EMI for business loans, MUDRA, home loans, vehicle loans, and personal loans. Reducing balance + flat rate modes — with total interest breakdown.
Before signing any loan paper — a MUDRA loan for your shop expansion, a working capital line for inventory, a home loan, a car loan, a personal loan against your savings — you should know exactly what the monthly outgoing will be. Our free EMI calculator gives you that number in seconds. Enter the loan amount, the interest rate (annual), and the tenure in months or years, and the tool returns the monthly EMI, the total interest you'll pay over the loan, the grand total amount payable, and a year-by-year amortisation breakdown.
The calculator supports both reducing-balance and flat-rate interest methods because Indian lenders use both. Most banks and NBFCs use reducing balance for retail loans (home, car, MUDRA, personal). Some gold-loan providers, two-wheeler dealers and chit-fund-style products still quote flat rates, which look cheaper but are actually more expensive. The tool shows you the difference so you can negotiate from a position of knowledge — a 12% flat-rate loan typically equates to roughly 22% reducing-balance, which changes the picture dramatically.
Who uses it? Small business owners deciding between a ₹5 lakh working capital loan versus stretching credit-card EMI for inventory. Kirana owners checking whether their shop can absorb the EMI before signing a MUDRA loan. Salaried professionals comparing home loans from SBI, HDFC and ICICI by plugging in slightly different rates and tenures. Two-wheeler buyers evaluating whether a 12-month or 24-month tenure makes more sense. Existing borrowers checking whether refinancing at a lower rate is worth the processing fee.
The amortisation table shows you exactly how much of each EMI is going toward interest versus principal in each year — an eye-opener for first-time borrowers who often assume the split is even. You can change inputs and recompute instantly, which is helpful when negotiating with a loan officer who keeps adjusting the offer. Everything runs locally, no data is uploaded, no signup is required. Use it to make an informed decision before you commit to multi-year debt, not after.
Reducing Balance for banks/MUDRA. Flat Rate for some NBFCs and hire-purchase.
Amount, annual interest rate, and tenure (years or months).
Monthly EMI, total interest, total payable — across the full tenure.
Reducing Balance is what most banks, NBFCs, and government loans (MUDRA, Stand-Up India) use. Interest is calculated on the remaining principal each month — so as you pay down the loan, the interest portion of each EMI shrinks. You actually pay less total interest than the flat rate at the same nominal interest rate.
Flat Rate is used by some hire-purchase lenders, vehicle dealers' in-house financing, and a few NBFCs. Interest is calculated on the original loan amount for the full tenure — even after you've paid down most of the principal. The effective interest rate ends up being roughly 1.8× to 2× the stated flat rate.
If a lender quotes "12% flat" — that's typically equivalent to ~22% reducing balance. Always compare loans on a reducing-balance basis.
Yes — the math matches standard bank/RBI formulas. But your actual EMI may include small processing fees, GST on interest (for some products), or insurance premiums. Always check the bank's amortization schedule for the exact figure.
Three ways: (1) Negotiate a lower interest rate, especially if your credit score is good. (2) Increase the tenure (lower EMI, but more total interest). (3) Make a larger down payment to reduce the principal.
Under 12% reducing is excellent. 12-15% is normal for established businesses. Above 18% means the lender sees you as high-risk — try MUDRA, SIDBI, or PSB Loans in 59 Minutes instead.
Yes, in most loans. Banks usually have 0% prepayment fee for floating-rate loans, but check for fixed-rate loans which may charge 2-4% prepayment penalty.
Other free tools small Indian businesses use alongside this one.
