About the EMI Calculator
An EMI, or equated monthly instalment, is the fixed amount you pay a lender every month until a loan is cleared. This EMI calculator works for any loan: home, car, personal, education or business. Enter the amount, the interest rate and the tenure to see the monthly EMI, the total interest, the total repayment and a year-wise amortisation schedule.
Borrowers use it before applying, to check that the instalment fits their monthly budget, and to compare offers from different lenders. The amortisation table is useful later as well: it shows how much of the loan is still outstanding at the end of each year, which matters when you plan a prepayment, a balance transfer or the sale of the asset.
The EMI depends on the loan amount, the interest rate and the tenure. A longer tenure lowers the instalment but raises the total interest, often substantially. In the early years most of each EMI goes towards interest, and the principal portion grows with time. The calculation assumes a fixed rate; on a floating-rate loan, the lender changes the EMI or the tenure whenever the rate is reset.
How to use it
- 1Enter the loan amount.
- 2Enter the annual interest rate quoted by the lender.
- 3Enter the tenure and choose whether it is in years or months.
- 4Read the EMI, total interest and total payment, then open the year-wise schedule to see the balance reduce.
How this is calculated
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 instalments. Each month, interest = outstanding balance × r, and the rest of the EMI reduces the principal. Total interest = EMI × n − P.
Frequently asked questions
How is EMI calculated?
Lenders use the reducing-balance formula: the loan amount multiplied by the monthly rate and by one plus the monthly rate raised to the number of instalments, divided by the same power term minus one. Each month interest is charged only on the outstanding principal, and the rest of the EMI reduces the loan.
What is an amortisation schedule?
It is a table showing how each payment is divided between interest and principal, and the balance left afterwards. This calculator summarises it by year: the opening balance, the principal and interest paid during the year and the closing balance. It helps you see how slowly the principal falls in the early years.
Does a longer tenure reduce my cost?
It reduces the monthly EMI but increases the total cost, because interest is charged for more months on a balance that falls more slowly. Choose the shortest tenure whose EMI you can pay comfortably, and keep some margin in your budget for rate increases if the loan is on a floating rate.
What is the difference between a flat rate and a reducing-balance rate?
A flat rate charges interest on the full original amount throughout the tenure, while a reducing-balance rate charges interest only on what is still outstanding. For the same quoted percentage, a flat-rate loan is far more expensive. Banks generally use the reducing-balance method, which is what this calculator applies.
Does the EMI include processing fees and insurance?
No. The EMI covers only principal and interest. Processing fees, documentation charges, GST on those fees and any loan-linked insurance are charged separately or deducted from the disbursed amount. Ask the lender for the Key Fact Statement, which shows the annual percentage rate with these costs included.