An EMI (equated monthly instalment) is the fixed amount you pay the lender every month until a loan is repaid. This EMI calculator shows that monthly figure, how much of your money goes to interest, and how the balance falls year by year. It runs in your browser, so nothing you type is sent anywhere.
How to use the EMI calculator
- Enter the loan amount (the principal).
- Enter the interest rate in % per year, as quoted by the lender.
- Enter the tenure, and choose whether it is in years or months.
- Read the monthly EMI, the total interest and the total payment.
- Check the principal-vs-interest bar and the year-wise amortisation table, which lists the principal paid, interest paid and balance left at the end of each year.
The EMI formula
Most Indian banks quote reducing-balance loans, where interest is charged each month only on the amount still owed. The standard formula is:
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)
P = loan amount
r = monthly interest rate = annual rate ÷ 12 ÷ 100
n = number of monthly instalmentsExample. A ₹10,00,000 loan at 9% a year for 20 years has r = 0.0075 and n = 240. The EMI comes to about ₹8,997. Over 240 months you pay about ₹21.59 lakh in total, so the interest is about ₹11.59 lakh: more than the amount you borrowed.
Why early EMIs are mostly interest
Each month, interest is worked out on the balance still owed, and the rest of the EMI reduces the principal. In the example above, the first month’s interest is ₹10,00,000 × 0.0075 = ₹7,500, so only about ₹1,497 of the ₹8,997 EMI reduces the loan. As the balance falls, the interest part shrinks and the principal part grows. The amortisation table in the EMI calculator shows this shift clearly.
| What you change | Effect on EMI | Effect on total interest |
|---|---|---|
| Longer tenure | Lower | Higher |
| Shorter tenure | Higher | Lower |
| Lower interest rate | Lower | Lower |
| Smaller loan amount | Lower | Lower |
Tip: Try two or three tenures before you sign. A slightly higher EMI over fewer years can save a large amount of interest.
What this calculator does not include
- Processing fees, insurance, GST on fees and other charges.
- Changes in a floating rate during the loan. Many home loans are linked to an external benchmark, so the rate and EMI can change.
- Part-prepayments, EMI holidays or flat-rate loans, where interest is charged on the original amount for the whole term.
The Reserve Bank of India publishes guidance for borrowers on rbi.org.in, and regulated lenders must give you a Key Fact Statement that shows the annual percentage rate (APR) and the full repayment schedule. Treat the figures here as estimates and confirm the final EMI and schedule with your lender. For a planned investment instead of a loan, try the SIP calculator.
Learn more
Frequently asked questions
Why is my bank's EMI slightly different?
Banks may round differently, start interest from the disbursal date rather than a month start, or add a broken-period interest charge. Small differences are normal.
Does a lower EMI mean a cheaper loan?
Not always. A lower EMI from a longer tenure usually means you pay more interest in total. Compare the total payment, not just the EMI.
Can I use this for a car or personal loan?
Yes, for any reducing-balance loan with a fixed rate and equal monthly instalments. It is not suitable for flat-rate loans.
Is the rate per month or per year?
Enter the yearly rate the lender quotes, for example 9. The calculator divides it by 12 to get the monthly rate.