EMI Calculator
Calculate EMI, total interest and amortization schedule for any reducing balance loan in India. Free EMI calculator with year by year principal and interest split.
Calculate your result
Enter your numbers. Your estimate and charts update as you make changes.
Inputs
- Monthly EMI
- ₹21,742
- Total interest
- ₹3,04,545
- 30.5%
- Total payment
- ₹13,04,545
- ₹13.05L
What your numbers mean
You pay ₹3.05L in interest — 30% of the loan amount.
Interest is a function of rate × tenure. Cutting either reduces it.
Yearly principal vs interest split
Each year’s payments, split into principal and interest. The table also shows your remaining balance.
View repayment data
| Year | Principal paid | Interest paid | Closing balance |
|---|---|---|---|
| 1 | ₹1,58,755 | ₹1,02,154 | ₹8,41,245 |
| 2 | ₹1,77,126 | ₹83,783 | ₹6,64,120 |
| 3 | ₹1,97,622 | ₹63,287 | ₹4,66,497 |
| 4 | ₹2,20,491 | ₹40,418 | ₹2,46,006 |
| 5 | ₹2,46,006 | ₹14,903 | ₹0 |
Total payment split
See how the total is divided. Amounts in rupees.
- Principal · 76.7%₹10,00,000
- Interest · 23.3%₹3,04,545
Understand your calculation
An EMI, or Equated Monthly Instalment, is the fixed monthly payment a borrower makes to a lender on a reducing balance loan. Each EMI is split into two parts. A portion goes toward interest on the outstanding balance, the rest reduces the principal. Early EMIs are mostly interest. Later EMIs are mostly principal. The EMI calculator on this page computes the monthly figure, the total interest you will pay over the loan, and a year by year breakdown so you can see exactly how the split shifts.
Benefits at a glance
Compare repayment costs
Check EMI and lifetime interest together. Actual lender schedules can differ because of payment dates, daily interest, rounding, fees, rate resets or moratoria.
How to use the EMI Calculator
- 1
Enter the loan amount
The principal you are borrowing. Use the actual sanctioned amount, after any margin money or down payment.
- 2
Enter the interest rate
The annual rate offered by the lender. For floating rate loans, use the current rate as a starting point and rerun the calculator if the rate is reset by the RBI's repo cycle.
- 3
Enter the tenure in years
Loan tenure. Five years for a personal loan, 5 to 7 for a car loan, 15 to 25 for a home loan. The tenure dramatically affects total interest, so try a few values to find your sweet spot.
- 4
Read the EMI and total interest
The EMI is your monthly outflow. The total interest is the lifetime cost above the principal. Use both to judge whether the loan is comfortable.
Worked example
₹10 lakh loan at 11% for 5 years
With the calculator's defaults, `r` is 11 ÷ 12 ÷ 100 = 0.009167 and `n` is 60 months. The EMI comes to ₹21,742. In month 1, interest is ₹10,00,000 × 0.009167 = ₹9,167, so only ₹12,576 of the first EMI cuts the principal.
- Loan amount
- ₹10,00,000
- Monthly EMI
- ₹21,742
- Interest paid in year 1
- ₹1,02,154
- Balance after year 1
- ₹8,41,245
- Total interest over 5 years
- ₹3,04,545
- Total repaid
- ₹13,04,545
Interest eats about 42% of each EMI in month 1, and that share keeps shrinking as the balance falls.
How it's calculated
The EMI is EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r is the annual rate ÷ 12 ÷ 100 and n is the tenure in years × 12, rounded to whole months. At 0% interest the EMI is simply P ÷ n.
The schedule then runs month by month: interest = opening balance × r, principal = EMI − interest, and the balance falls by that principal. The last instalment is set to clear whatever balance is left, so there's no rupee of rounding left over.
Total interest and total repaid are the sums of the actual monthly rows, and the yearly table groups those rows into 12-month blocks.
Assumptions and exclusions
- Annual reducing-balance interest rate is divided by 12, not treated as an effective annual investment return.
- Payments are at month-end and rates remain constant.
- At zero interest, EMI equals principal divided by months.
- Final payments are capped; totals sum actual schedule payments. Fees, rate resets and moratorium accrual are excluded.
Frequently asked questions
What is the EMI formula?
EMI equals P times r times (1 plus r) raised to n, divided by ((1 plus r) raised to n minus 1). Here P is the loan amount, r is the monthly interest rate (annual rate divided by 12 and divided by 100) and n is the number of monthly instalments. Every Indian bank uses this formula for reducing balance loans.
Why is the EMI mostly interest in the early years?
Because interest is calculated on the outstanding balance. In the first month the balance is the full loan amount, so most of the EMI goes to interest. As the principal reduces, the interest portion shrinks and the principal portion grows. By the last few years of a long tenure loan, almost the entire EMI is principal repayment.
Should I take a longer or shorter tenure?
A longer tenure means a lower monthly EMI but more total interest paid. A shorter tenure means a higher EMI but a meaningfully lower total cost. The right answer balances monthly affordability against the total amount of interest you are willing to pay. A common rule of thumb is to keep total EMI commitments at 40 to 50 percent of net monthly income.
What is the difference between fixed rate and floating rate EMI?
A fixed rate loan keeps the EMI constant for the full tenure, regardless of market interest rate movements. A floating rate loan changes the EMI (or the tenure) when the lender's benchmark (often linked to the RBI repo rate) is revised. Most home loans in India are floating rate. Most car and personal loans are fixed rate.
Can I prepay my loan and reduce the EMI?
Yes. Prepayment reduces the outstanding principal. Most banks then ask whether you want to keep the EMI the same and shorten the tenure, or keep the tenure the same and lower the EMI. Shortening the tenure usually saves more interest. The loan prepayment calculator on this site shows the exact savings for any prepayment scenario.
Is EMI the same as instalment for a credit card?
A transaction converted into card EMI is different from revolving minimum-due debt. Issuers can use different interest conventions and add processing fees or GST. Check the reducing-balance rate, fee-inclusive APR and repayment schedule before comparing offers.
Are there charges other than interest on a loan?
Yes. Most loans carry processing fees (0.5 to 2 percent of the loan amount), legal and valuation charges (for home loans), GST on the processing fee, and sometimes annual maintenance charges. These are not included in the EMI but they add to the total cost. Ask the lender for the All In Cost or Annual Percentage Rate (APR) for a complete picture.