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How to Calculate Your Loan EMI Before Applying — India Guide 2025

Biddaro Finance Team5 May 20256 min read

EMI = P × R × (1+R)^N / ((1+R)^N - 1). Here's what that actually means — with ready-made EMI tables for every common loan amount in India.

Before you apply for any loan in India — construction, personal, business, or renovation — the most important number to know is your EMI (Equated Monthly Instalment). Knowing your EMI helps you decide whether you can comfortably repay without straining your monthly budget.

The EMI Formula

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 Example: ₹10 Lakh loan at 8.5% p.a. for 10 years R = 8.5 ÷ 12 ÷ 100 = 0.00708 N = 120 months EMI = 10,00,000 × 0.00708 × (1.00708)^120 ÷ ((1.00708)^120 - 1) = ₹12,399/month

EMI Table — Home Construction Loan at 8.5% p.a.

Loan Amount5 Years10 Years15 Years20 Years
₹5 Lakh₹10,241₹6,199₹4,927₹4,340
₹10 Lakh₹20,483₹12,399₹9,853₹8,678
₹20 Lakh₹40,966₹24,797₹19,707₹17,357
₹30 Lakh₹61,448₹37,196₹29,560₹26,035
₹50 Lakh₹1,02,414₹61,993₹49,267₹43,392
₹1 Crore₹2,04,828₹1,23,986₹98,533₹86,783

💡 Pro Tip

The EMI table shows why longer tenures make large loans affordable. A ₹50 Lakh loan costs ₹1,02,414/month over 5 years but only ₹43,392/month over 20 years. The trade-off: you pay ₹54.1 Lakh more in total interest over 20 years vs 5 years.

EMI Table — Personal Loan at 14% p.a.

Loan Amount1 Year2 Years3 Years5 Years
₹1 Lakh₹8,979₹4,799₹3,417₹2,327
₹2 Lakh₹17,958₹9,597₹6,835₹4,655
₹3 Lakh₹26,937₹14,396₹10,252₹6,982
₹5 Lakh₹44,895₹23,993₹17,087₹11,637

3 Things EMI Does Not Tell You

  1. 1Total interest paid — always calculate (EMI × months) minus principal to understand the true cost
  2. 2Processing fees and GST — typically 1–3% of loan amount, added upfront
  3. 3Prepayment charges — if you repay early, most lenders charge 2–5% of outstanding principal

Check Your EMI Instantly on Biddaro

Apply for your loan at biddaro.com/loan-apply. Our EMI calculator shows your exact monthly payment based on your loan amount, type, and preferred tenure — before you commit to anything. Subscription just ₹100/month. Cancel anytime.

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Last updated: 20 May 2025

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