What is an EMI?
An EMI (Equated Monthly Instalment) is the fixed amount a borrower pays every month until a loan is closed. It bundles together a slice of the principal you borrowed and the interest charged for that month.
Loan Calculator
Calculate your monthly EMI, total interest and total loan repayment instantly.
Enter your loan amount, annual interest rate and tenure in years to estimate the EMI you will pay each month, how much of it is interest, and the full year-by-year repayment schedule.
Loan details
Results update instantly as you change any value.
₹1,000 and above. Decimals are supported.
0% to 50%. Decimal rates like 8.5% or 10.75% work.
1 to 30 years.
Monthly EMI
₹10,623.52
60 monthly instalments at 10% per year
₹5,00,000
Loan amount (principal)
The amount you borrow
₹1,37,411
Total interest
Cost of borrowing
₹6,37,411
Total payment
Principal + interest
This Loan Calculator provides an illustrative estimate based on the loan amount, interest rate and tenure entered by the user. Actual EMI, interest and repayment may vary depending on the lender's terms, fees, charges and applicable conditions.
Loan Repayment Schedule
Year-by-year totals derived from the monthly amortisation of your loan.
| Year | Opening balance | Principal paid | Interest paid | Total payment | Closing balance |
|---|---|---|---|---|---|
| 1 | ₹5,00,000 | ₹81,134 | ₹46,348 | ₹1,27,482 | ₹4,18,866 |
| 2 | ₹4,18,866 | ₹89,630 | ₹37,852 | ₹1,27,482 | ₹3,29,236 |
| 3 | ₹3,29,236 | ₹99,015 | ₹28,467 | ₹1,27,482 | ₹2,30,221 |
| 4 | ₹2,30,221 | ₹1,09,383 | ₹18,099 | ₹1,27,482 | ₹1,20,837 |
| 5 | ₹1,20,837 | ₹1,20,837 | ₹6,645 | ₹1,27,482 | ₹0 |
Loan EMI Formula
EMI = P × r × (1+r)^n / ((1+r)^n − 1)
- P — Loan principal, the amount borrowed.
- r — Monthly interest rate.
- n — Number of monthly payments.
The annual interest rate is converted into a monthly rate by dividing it by 12 and then by 100. For example, 10% per year becomes 10 ÷ 12 ÷ 100 = 0.008333 per month. The tenure is converted into months by multiplying the years by 12, so 5 years becomes 60 instalments. When the rate is 0%, the formula collapses to EMI = P ÷ n, and total interest is ₹0.
Understanding loans and EMIs
How is loan EMI calculated?
Lenders in India use the reducing-balance method. The annual rate is converted to a monthly rate, the tenure to months, and the EMI is derived so that the balance reaches exactly zero on the final instalment.
What is reducing-balance interest?
Interest each month is charged only on the outstanding balance, not on the original amount. As you repay, the balance falls, so the interest portion of each EMI shrinks and the principal portion grows.
How does loan tenure affect EMI?
Stretching a loan over more years lowers each monthly instalment because the principal is split across more payments — but interest accrues for longer, so total interest generally rises.
How does interest rate affect EMI?
The rate directly scales the monthly interest charge. A higher rate increases both the EMI and total interest; even a fraction of a percent is noticeable on long tenures.
What is the difference between principal and interest?
Principal is the borrowed money being returned to the lender. Interest is the cost of borrowing it. Together they make up the total payment shown above.
Frequently asked questions
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