Enter the amount, the rate and how long you want to take. The instalment updates as you type. Nothing is gated and no phone number is needed.
₹68,490
per month · 84 months
- Total interest
- ₹17,53,139
- Total repayment
- ₹57,53,139
In the first year, about 51.1% of what you pay goes to interest rather than reducing the loan.
Which options may suit this?Indicative only. Final eligibility, interest rate, charges and sanction are decided by the lender after full assessment of your profile and documents. Transakt does not lend and does not approve loans.
How an EMI is actually calculated
Every EMI in India uses the same formula:
EMI = P × r × (1+r)^n / ((1+r)^n − 1)
Where P is the amount you borrow, r is the monthly interest rate (the annual rate divided by twelve, then by a hundred) and n is the number of months. The instalment stays the same every month, but what it is made of changes: early on, most of it is interest; later, most of it repays the loan.
A worked example
Borrow ₹40,00,000 at 11% a year over seven years. The monthly rate is 0.9167%, and there are 84 instalments. The EMI works out at about ₹68,490 a month. Over the full seven years you repay roughly ₹57,53,000 — of which about ₹17,53,000 is interest.
The part most people miss: in the first year, around 51% of everything you pay goes to interest rather than reducing the loan. That is why prepaying early makes such a large difference and prepaying in the last two years makes almost none.
What this number does not tell you
- The processing fee. Typically 1% to 3% of the loan and often deducted from what is disbursed, so you receive less than you borrowed while paying interest on the full amount.
- Whether the rate is fixed or floating. On a floating-rate loan your EMI or your tenure will change when rates move.
- Insurance premiums that some lenders bundle in and add to the loan.
- Whether you can actually afford it. That is what FOIR answers — work out yours here.
Choosing a tenure
A longer tenure means a lower monthly instalment and a much larger total interest bill. On the ₹40 lakh example above, stretching from seven years to ten drops the EMI to about ₹55,100 but pushes total interest to roughly ₹26,10,000 — nearly ₹8.6 lakh more.
Neither is automatically right. A lower EMI that leaves your business breathing room may be worth the extra cost. What matters is deciding it deliberately rather than accepting whatever the lender offers first.
Is the EMI the same for every lender?
The formula is identical everywhere. What differs is the interest rate you are offered and the fees around it, which is why comparing EMIs is really comparing rates and charges.
Does my EMI change during the loan?
On a fixed-rate loan, no. On a floating-rate loan the lender usually keeps the EMI the same and changes the tenure instead when rates move — or, if the change is large, adjusts the EMI. Ask which approach your lender takes.
Should I prepay or invest the money instead?
Broadly, prepaying beats investing when the loan rate is higher than what you would reliably earn after tax. On an 18% business loan that is almost always. On an 8.5% home loan it is a genuine judgement call. We are not investment advisers — talk to someone who is.