About EMI Calculator
An EMI, or Equated Monthly Instalment, is the fixed amount you pay a lender every month until a loan is cleared. Each instalment is part interest and part principal, but the split shifts over time: early payments are mostly interest, and only in the later years does most of your money start reducing the balance.
This calculator uses the standard reducing-balance formula that banks use for home, car and personal loans, and shows the full amortisation schedule so you can see that shift year by year.
How to use it
- Enter the loan amount, the annual interest rate and the tenure in years. Every amount is echoed in words underneath, so a long figure like 25000000 reads back as '2 crore 50 lakh'.
- Read the monthly EMI, the total interest and the total amount payable over the life of the loan.
- Expand the year-by-year schedule to see how much of each year's payments go to interest versus principal, or download the full month-by-month schedule as CSV.
Frequently asked questions
- How is EMI calculated?
- The formula is P·r·(1+r)^n / ((1+r)^n − 1), where P is the principal, r is the monthly interest rate (annual rate divided by 12 and by 100), and n is the number of months. This is the reducing-balance method every mainstream lender uses.
- Why is so much of my early EMI going to interest?
- Interest is charged on the outstanding balance, which is at its largest at the start. On a 20-year home loan the first year is typically around 80% interest. This is also why prepaying early saves far more than prepaying late.
- Does a longer tenure make a loan cheaper?
- It lowers the monthly payment but raises the total cost, often dramatically, because interest accrues for longer. Compare the 'total payable' figure across tenures rather than judging by EMI alone.