This article shows you an easy way to know your EMI for any home, car, personal, gold or credit card loan.

📚 Topics covered:

• How EMI of a loan works?
• How are loan EMIs calculated?
• Car loan EMI per lakh
• Gold loan EMI per lakh
• Personal loan EMI per lakh
• Credit Card loan EMI per lakh
• Home loan EMI per lakh

How EMI of a loan works?

Using the example of a home loan, this is how an EMI works. This is not the only way to calculate how much a loan payment works but it is the most common method.

The bank gives a home loan to own the property while you use it until you pay back the loan via EMIs. An Equated Monthly Instalment plan (EMI) is a standard way to pay off a loan by making a fixed payment monthly that has both interest and principal in the same amount.

EMI = Principal + Interest

In each EMI, the split of the interest and principal changes since the interest is based on the outstanding loan balance at that point and the rest of the EMI is principal. As the chart shows, the interest part drops off with time, and the rest is the principal. The actual numbers in the chart relate to a ₹50 lakhs home loan taken at 8% for 25 years. The EMI is ₹38,591. The down payment amount is ₹12.5 lakhs.

How are loan EMIs calculated?

We can use this Excel formula to calculate the EMI:

EMI = PMT(r/12 , y * 12, -p * 10^5 , 0 , 0) where r = interest rate in %, y = years and p = amount borrowed in ₹ lakhs

In the sections below, we will show the EMI for a ₹1 lakh outstanding loan balance. You can simply multiply the numbers in the tables with your actual loan balance to find your EMI number. In each case we have used a consistent number of years in the loan and the interest rate range is as per current market rates.

EMI per lakh figures near a ₹1,000/month are in blue. To understand how EMIs will afftect your future cashflow:

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Car loan EMI per lakh

Gold loan EMI per lakh

Personal loan EMI per lakh

Credit Card loan EMI per lakh

The EMI amount does not seem too bad until you realise that for each deepening of the shade if red, the amount of principal repaid increases by 100%. The numbers in the table exclude GST on interest.

Home loan EMI per lakh

We have a detailed article on this topic of home loan EMIs here: How much EMI do I have to pay for my home loan?