How to use the emi calculator
- Enter the loan amount, the annual interest rate and the tenure in years or months. Sliders make it quick to explore scenarios.
- Read the monthly EMI, total interest and total payment. The bar shows how the total splits between principal and interest.
- Scroll the repayment schedule by year or by month to see how the balance falls over time.
- Copy the summary to compare offers.
Features
- Standard reducing-balance EMI formula used by Indian banks and NBFCs
- Total interest, total payment and the interest-to-principal ratio
- Yearly and monthly amortization schedules
- Works for 0% promotional loans
- Instant recalculation as you move the sliders
The EMI formula and assumptions
EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), where P is the principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly instalments. This is the reducing-balance method: each month's interest is charged on the outstanding balance, so early instalments are mostly interest and later ones mostly principal.
Assumptions: interest is compounded monthly, instalments are equal and paid at the end of each month, and the rate stays fixed for the whole tenure. The EMI is rounded to the paisa and the final instalment absorbs any rounding so the balance ends at exactly zero.
What the calculator doesn't include
Real loans add costs that change the effective rate. Check your sanction letter for:
- Processing fees, typically 0.5–2% of the loan, often deducted up front
- Floating-rate resets, which change the EMI or tenure after a rate change
- Prepayment or foreclosure charges, common on fixed-rate and personal loans
- Insurance premiums bundled with the loan
- Moratorium or step-up structures where the EMI changes over time
Reading the schedule
On a 20-year home loan at 8.5%, roughly 70% of the first year's payments go to interest. Prepaying even a small amount in the early years saves far more interest than the same amount later, because it removes principal that would otherwise be charged interest for decades. Use the yearly view to see the balance you'd be prepaying against.