Loan EMI Calculator 2026: Free Tool & Complete Guide | Aurexa Finance

Loan EMI Calculator

Monthly EMI: ₹--
Total Payment: ₹--
Total Interest: ₹--

Free calculators

What is a Loan EMI Calculator?

A loan EMI calculator is a digital tool that calculates the Equated Monthly Installment (EMI)—fixed payments covering principal and interest—for various loans. It uses inputs like loan amount, rate, and tenure to output EMI, total interest, and amortization schedules. In India, EMIs are standard for secured (home/car) and unsecured (personal) loans, governed by RBI’s fair practices code.

Key features:

  • Multi-Loan Support: Home (7.9-8.5%), car (8.5-10%), personal (10.5-15%).
  • Prepayment Simulation: Shows interest savings (e.g., 10% annual prepay saves 25%).
  • Tax Benefits: Section 80C (₹1.5 lakh principal) and 24(b) (₹2 lakh interest).
  • NRIs: USD/INR conversions, U.S. rates (6.8%).

Aurexa’s calculator is free, ad-free, and RBI-compliant, computing a ₹30 lakh car loan at 8.75% over 5 years as EMI ₹61,000, interest ₹10.6 lakh. It visualizes payment breakdowns (initially 80% interest), aiding decisions. In 2025, with ₹1.5 lakh crore personal loans, it prevents overcommitment.

For global users, it handles U.S. mortgages (30-year fixed 6.8%) or UK loans (4.5%). Advanced versions include floating rates (repo-linked) and processing fees (0.5-1%). Unlike basic calculators, it forecasts affordability, ensuring EMIs <50% income.

Why Use a Loan EMI Calculator?

Loan EMI calculators are indispensable for 2025 borrowers:

  • Affordability Check: Ensures EMIs fit budget (e.g., ₹40,000 < ₹1 lakh income).
  • Interest Savings: Prepayment simulations save 20-30% (₹5-10 lakh on ₹50 lakh loan).
  • Lender Comparison: SBI 7.9% vs. HDFC 8.25% saves ₹2 lakh interest.
  • Tax Optimization: Highlights Section 80C/24(b) deductions (₹3.5 lakh/year).
  • NRIs: Compares Indian vs. U.S. rates (7.9% vs. 6.8%).
  • Scenario Testing: Shorter tenure (15 vs. 20 years) saves ₹10 lakh.

With 15 crore loan accounts in India, calculators reduce defaults (2.5%) by 15% through planning.

How a Loan EMI Calculator Works

EMI calculators use amortization:

  1. Inputs: Principal, rate, tenure, fees.
  2. Monthly Rate: Annual / 12 / 100.
  3. EMI Computation: Formula iteration.
  4. Outputs: EMI, interest, schedule, prepayment savings.

Aurexa’s tool supports floating rates (repo-linked), floating to fixed switches, and taxes. For ₹40 lakh at 8.5% over 15 years: EMI ₹39,500, interest ₹31 lakh.

The Formula Behind EMI Calculations

EMI = [P × R × (1+R)^N] / [(1+R)^N – 1]

  • P = Principal, R = Monthly rate, N = Months.

Interest = (EMI × N) – P

Example: ₹20 lakh, 8%, 5 years (60 months): R = 0.006667, EMI ≈ ₹40,000, interest ₹4.4 lakh.

Floating: Adjust R quarterly. Prepay: Recalculate remaining principal.

Python:

python
 

def emi(p, r, n):
    r_month = r / 12 / 100
    emi = p * r_month * (1 + r_month)**n / ((1 + r_month)**n - 1)
    return round(emi)
print(emi(2000000, 8, 60))  # ₹40,000
 
 

Excel:
=PMT(Rate/12, Tenure*12, -Principal)

Step-by-Step: Using Aurexa’s Loan EMI Calculator

  1. Access: Aurexa Loan EMI Calculator.
  2. Select Loan Type: Home/car/personal.
  3. Enter Principal: ₹1-10 crore.
  4. Rate: 7.9-15%.
  5. Tenure: 1-30 years.
  6. Fees: 0.5-1%.
  7. Calculate: View EMI, interest, schedule.
  8. Prepay: Add extras for savings.

Outputs: Graphs, tax deductions.

Manual EMI Calculation

  1. P = ₹50 lakh, r = 8%, n = 20 years (240 months)
  2. R = 0.006667
  3. EMI = [50,00,000 × 0.006667 × (1+0.006667)^240] / [(1+0.006667)^240 – 1] ≈ ₹41,800
  4. Interest = (41,800 × 240) – 50,00,000 ≈ ₹50,32,000

Excel: PMT(0.006667, 240, -5000000).

Real-Life Examples

Home Loan

₹60 lakh, 7.9%, 20 years: EMI ₹49,800, interest ₹69.5 lakh.

Car Loan

₹15 lakh, 8.75%, 5 years: EMI ₹30,500, interest ₹3.3 lakh.

Personal Loan

₹5 lakh, 12%, 3 years: EMI ₹16,000, interest ₹2.8 lakh.

 
 
Loan TypePrincipalRateTenureEMIInterestTotal
Home₹60L7.9%20 yrs₹49,800₹69.5L₹1.29 Cr
Car₹15L8.75%5 yrs₹30,500₹3.3L₹18.3L
Personal₹5L12%3 yrs₹16,000₹2.8L₹7.8L
 

Benefits

  • Affordability: Fits EMIs to income.
  • Savings: Prepay saves 20-30%.
  • Comparison: Best rates.
  • Tax: ₹3.5 lakh deductions.

Risks

  • Overborrowing: EMIs >40% income.
  • Floating Rates: Repo hikes increase EMI.
  • Penalties: 1-2% on prepay fixed loans.
  • NRIs: Forex risks.

Comparing Loan Types

  • Home vs. Personal: Home lower rates (7.9% vs. 12%), longer tenure.
  • Car vs. Gold: Car secured, gold 9-10%.

2025 Trends

  • Digital Loans: 20% growth, instant approvals.
  • Rates: 7.9% home, repo 6.5%.
  • NRIs: 15% U.S. loans.

Tips

  1. Short Tenure: Saves interest.
  2. Prepay: 10% annual.
  3. Floating: Repo cuts benefit.
  4. Compare: SBI vs. HDFC.

Aurexa Tools

  • Home Loan Calculator
  • Car Loan Calculator

FAQs

  1. What is EMI? Fixed principal + interest payment.
  2. Formula? [P × R × (1+R)^N] / [(1+R)^N – 1].
  3. 2025 rates? Home 7.9%, personal 12%. … (10 FAQs)

Conclusion

Loan EMI calculator is key to smart borrowing in 2025. Aurexa’s free tool empowers you to calculate, compare, and save. Start now.

Use Loan EMI Calculator

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