What is EMI?
An Equated Monthly Instalment is the fixed amount you repay each month. It stays the same through the tenure (for a fixed rate) and covers both interest and principal.
Calculate your monthly loan EMI, total interest and total repayment instantly — for home, personal and car loans.
Results update instantly as you change any value.
₹10,258
60 monthly instalments at 8.5% per year
₹5,00,000
Total principal
The amount you borrowed
₹1,15,496
Total interest
Cost of borrowing
₹6,15,496
Total payment
Principal + interest
18.8%
Interest share
Of your total payment
Year-by-year repayment. Expand a year to see every monthly instalment.
| Year | Opening balance | Principal paid | Interest paid | Total payment | Closing balance |
|---|---|---|---|---|---|
| ₹5,00,000 | ₹83,815 | ₹39,285 | ₹1,23,099 | ₹4,16,185 | |
| ₹4,16,185 | ₹91,223 | ₹31,876 | ₹1,23,099 | ₹3,24,962 | |
| ₹3,24,962 | ₹99,286 | ₹23,813 | ₹1,23,099 | ₹2,25,676 | |
| ₹2,25,676 | ₹1,08,062 | ₹15,037 | ₹1,23,099 | ₹1,17,614 | |
| ₹1,17,614 | ₹1,17,614 | ₹5,485 | ₹1,23,099 | ₹0 |
Every EMI is worked out with the reducing-balance formula: EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1). Here P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly instalments. In plain language: the bank spreads your loan plus interest into equal monthly payments, and interest is charged only on the balance still outstanding — so the interest portion shrinks every month while the principal portion grows.
The same method applies to every kind of loan in India, so you can use this loan EMI calculator for a home loan, a car or two-wheeler loan, or a personal loan. Enter the amount you plan to borrow, the annual rate your bank quotes and the tenure — the monthly EMI, total interest and the full repayment schedule update instantly, with all amounts shown in Indian rupee formatting.
An Equated Monthly Instalment is the fixed amount you repay each month. It stays the same through the tenure (for a fixed rate) and covers both interest and principal.
The principal is the actual money you borrowed. Over the tenure, the sum of the principal portions of all EMIs adds back up to this amount.
Interest is the lender's charge for giving you the money, calculated on the outstanding balance each month at the monthly rate.
A longer tenure splits the loan across more months, so each EMI is smaller — but you pay interest for more months, raising the total interest.
A higher rate increases the monthly rate in the formula, pushing up both the EMI and the total repayment. Even 0.5% makes a visible difference on long loans.
Paying extra towards the principal reduces the outstanding balance, which cuts future interest and can shorten the tenure considerably.
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