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Finance Calculators

EMI Calculator

Calculate monthly EMI, total interest and total repayment for a loan.

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Monthly EMI

₹6,333.79

₹2,60,054.64
Total interest
₹7,60,054.64
Total payable
120
Installments
Principal vs total interest65.8% / 34.2%
Principal ₹5,00,000.00Interest ₹2,60,054.64

Your first EMI breakdown

Principal repaid

₹2,583.79

Interest charged

₹3,750.00

The interest portion is usually highest at the start. As the balance falls, more of the same EMI goes toward principal.

EMI uses P x r x (1 + r)^n / ((1 + r)^n - 1), where r is the monthly rate and n is the number of installments. With a zero rate, the EMI is the amount divided by the number of months.

EMI formula explained

Banks generally calculate EMI using the reducing-balance method. Interest is charged on the outstanding balance, not permanently on the original loan amount.

EMI = P x r x (1 + r)^n / ((1 + r)^n - 1)
P
Principal, or the amount borrowed
r
Monthly rate: annual rate / 12 / 100
n
Total number of monthly installments

Worked example

For a loan of INR 20,00,000 at 9% annually for 20 years, r is 0.0075 and n is 240. The EMI is about INR 17,995 per month, total interest is about INR 23,18,685, and total repayment is about INR 43,18,685.

Practical ways to reduce your EMI or interest

  • Increase the down payment

    Borrowing less directly reduces both the EMI and total interest.

  • Compare and negotiate rates

    Even a small rate reduction can produce meaningful savings on a long loan.

  • Prepay early when permitted

    Early prepayments usually save more because the outstanding balance is still high. Check the lender's prepayment conditions first.

  • Choose tenure carefully

    A longer tenure lowers EMI but raises total interest. Compare both figures before deciding.

About the EMI Calculator

The EMI Calculator finds the Equated Monthly Installment for a loan, the fixed amount you repay every month across the full tenure.

It uses the standard EMI formula, P x r x (1 + r)^n / ((1 + r)^n - 1), where P is the principal, r is the monthly interest rate and n is the number of installments.

Each EMI contains principal and interest. In a reducing-balance loan, the interest portion is usually larger in the early months and falls as the outstanding balance decreases. The principal portion grows over time while the scheduled EMI normally remains the same.

Alongside the EMI, this calculator shows total interest, total repayment, the first payment split and a complete monthly payoff schedule. Everything is calculated locally in your browser.

Key features

  • Monthly EMI, total interest and total payable
  • Principal and interest cost breakdown
  • Complete month-by-month payoff schedule
  • CSV export and print-ready schedule
  • First EMI principal and interest split
  • Tenure in years or months
  • Handles zero-interest loans
  • Locale-aware currency formatting

How to use

  1. 1Enter the loan amount and choose a currency.
  2. 2Enter the annual interest rate and the loan tenure.
  3. 3Choose whether the tenure is in years or months.
  4. 4Compare the monthly EMI, total interest and total payable.
  5. 5Open the monthly payoff schedule to inspect principal, interest and remaining balance for every installment.
  6. 6Download the schedule as CSV or print it to save a PDF copy.

Examples

Home loan EMI
Input: INR 20,00,000 at 9% for 20 years
Output: About INR 17,995 per month

The estimated total interest is INR 23,18,685 and total repayment is INR 43,18,685.

Zero-interest loan
Input: INR 1,20,000 at 0% for 12 months
Output: INR 10,000 per month

With no interest, the principal is divided evenly across all installments.

Frequently asked questions

What is an EMI?
An Equated Monthly Installment is the fixed payment you make each month, combining interest and principal so the loan is fully repaid by the end of the tenure.
How is EMI different from a loan payment?
They use the same formula. EMI is simply the term commonly used for monthly loan installments in many countries.
Does a longer tenure reduce the EMI?
Yes. A longer tenure lowers each monthly installment but usually increases the total interest you pay overall.
What is the difference between flat-rate and reducing-balance interest?
Flat-rate interest is calculated on the original principal for the full term. Reducing-balance interest is calculated on the outstanding balance, which falls after each payment. This calculator uses the standard reducing-balance method.
Why is the interest portion higher at the start?
Monthly interest is based on the outstanding balance. Because that balance is highest at the beginning, early payments contain more interest and less principal.
Can prepayments reduce my EMI?
A prepayment reduces the outstanding principal. Depending on the lender, you may then reduce the EMI, shorten the tenure, or choose between those options. Check any prepayment charges and lender rules first.
What is a safe EMI-to-income ratio?
There is no universal limit, but many borrowers aim to keep all monthly debt payments around 30% to 40% of take-home income. Your essential expenses, savings, dependants and income stability also matter.
Does this EMI include fees, insurance or taxes?
No. The estimate uses only principal, interest rate and tenure. Processing fees, insurance, taxes, penalties and changing interest rates can make the lender's actual cost different.
Is the EMI calculator accurate?
The formula and amortization maths are accurate for a fixed-rate reducing-balance loan. Lenders may use different rounding, payment dates or fees, so treat the result as an estimate and verify the final offer documents.

Helpful guides

Finance GuidesHow Loan and EMI Calculations WorkRead guide

Continue your workflow

Open a related tool to prepare your files or refine the finished result.