Loans & EMI

EMI Calculator

Monthly instalment for any loan. Calculate the EMI, total interest and full repayment schedule for any reducing-balance loan.

Calculator

Your inputs
p.a.
%
Yrs

Monthly EMI

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    Principal amount
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    Total interest
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    Total payable
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    View the year-by-year breakdown
    Year-by-year breakdown for the EMI Calculator

    About the EMI Calculator

    An Equated Monthly Instalment keeps your payment constant while the composition changes underneath it. Early instalments are mostly interest; later ones are mostly principal. That is why the total interest on a loan depends far more on tenure than most borrowers expect. This calculator gives the EMI, the total interest and a month-by-month schedule for any loan type.

    The maths

    EMI formula

    EMI = [P x r x (1 + r)^n] / [(1 + r)^n - 1]

    P
    Principal loan amount
    r
    Monthly interest rate (annual rate / 12 / 100)
    n
    Loan tenure in months

    This is a reducing-balance loan: the EMI stays constant, but the interest share falls and the principal share rises with every instalment.

    How to use it

    Using this calculator

    1. Enter the loan amount you need.
    2. Set the interest rate offered by the lender.
    3. Choose the tenure in years.
    4. Read the EMI, then open the schedule to see interest against principal.
    Questions

    EMI Calculator FAQs

    How is EMI calculated?

    EMI = [P x r x (1+r)^n] / [(1+r)^n - 1], where P is the principal, r the monthly interest rate and n the tenure in months. The instalment stays fixed while the split between interest and principal shifts over time.

    Does a longer tenure reduce the cost of a loan?

    No. A longer tenure lowers the monthly EMI but raises total interest substantially, because the outstanding principal is reduced more slowly. The amortisation table below shows exactly how much extra interest a longer term costs.

    How does prepayment help?

    A prepayment reduces the outstanding principal directly, so every future interest calculation works on a smaller base. Prepaying early in the tenure saves far more than the same amount prepaid near the end.

    What is the difference between flat and reducing balance interest?

    Flat rate charges interest on the original principal for the whole tenure. Reducing balance charges only on the outstanding amount, which falls each month. A 10% flat rate costs roughly the same as an 18% reducing rate.

    What EMI can I comfortably afford?

    Lenders commonly cap total EMI obligations at about 40-50% of net monthly income. Staying well below that leaves room for rate increases on floating loans and for expenses that are not in your current budget.

    Important: this calculator provides general information and arithmetic only. It is not personal financial, tax or investment advice. Projected returns are illustrations based on the rate you enter, not guarantees, and market-linked investments can fall in value. Verify current tax rates and scheme terms before acting, and consult a qualified adviser where the decision matters.