EMI Calculator
An EMI — equated monthly instalment — is the fixed amount you pay every month to repay a loan with interest. It looks simple, but each EMI is a mix of interest and principal that changes over time: early on most of it is interest, and later most of it is principal. This calculator gives your EMI, the total interest over the life of the loan and a year-by-year schedule of principal, interest and balance. Add a monthly extra payment or a one-time part-payment to see how much sooner you would be debt-free and how much interest you would save. It works for any reducing-balance loan: home, car, personal or education.
How to use the emi calculator
- Enter the loan amount, the annual interest rate and the tenure in years.
- Read the EMI and the total interest, then scroll the yearly schedule to see the balance fall.
- Optionally enter an extra monthly payment or a lump-sum part-payment to model prepayment.
- Compare tenures and rates: a small change in either moves total interest a lot.
Formula
EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1), where P is the loan amount, r is the monthly rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly instalments. Total interest = EMI × n − P. Each month, interest = balance × r and the rest of the EMI reduces the balance (principal).
Worked examples
₹10 lakh at 8.5% for 20 years
The EMI is ₹8,678.23 and total interest is ₹10,82,775.76 — more than the amount borrowed (₹20,82,775.76 paid in all).
Prepaying ₹5,000 a month
On ₹25 lakh at 9% for 20 years, an extra ₹5,000 every month shortens the loan to 12 years 10 months, saving ₹11,82,873.35 in interest.
Shorter tenure, higher EMI
The same ₹10 lakh over 10 years has an EMI of ₹12,398.57 but total interest of only ₹4,87,828.27.
How tenure and rate change an EMI
₹10 lakh at 8.5%: tenure vs cost
| Tenure | EMI | Total interest |
|---|---|---|
| 5 years | ₹20,516.53 | ₹2,30,991.88 |
| 10 years | ₹12,398.57 | ₹4,87,828.27 |
| 15 years | ₹9,847.40 | ₹7,72,531.20 |
| 20 years | ₹8,678.23 | ₹10,82,775.76 |
| 25 years | ₹8,052.27 | ₹14,15,681.25 |
| 30 years | ₹7,689.13 | ₹17,68,088.54 |
₹10 lakh for 20 years: rate vs cost
| Rate | EMI | Total interest |
|---|---|---|
| 7.5% | ₹8,055.93 | ₹9,33,423.66 |
| 8.5% | ₹8,678.23 | ₹10,82,775.76 |
| 9.5% | ₹9,321.31 | ₹12,37,114.85 |
| 10.5% | ₹9,983.80 | ₹13,96,111.73 |
| 12% | ₹11,010.86 | ₹16,42,606.72 |
See the variants: home loan, car loan and personal loan EMI calculators.
Practice problems
Try these yourself first, then check your answer. The answers come from the calculator above.
- What is the EMI on ₹30 lakh at 9% for 15 years?
Show answer
Monthly EMI: ₹30,428.00 · Total interest payable: ₹24,77,039.55
Common mistakes to avoid
- Choosing the longest tenure for the lowest EMI. It maximises the interest you pay.
- Forgetting processing fees, insurance and other charges, which sit outside the EMI.
- Assuming a floating-rate loan stays at today’s rate. When the rate changes, the EMI or the tenure changes.
- Prepaying without telling the lender how to apply it (reduce tenure or reduce EMI) — confirm which option you are getting and any prepayment charges.
- Comparing loans only by the rate. Compare total cost, including fees.
Frequently asked questions
How is EMI calculated?
With the formula P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), where r is the monthly interest rate and n the number of months. The calculator shows the working.
What is the difference between flat and reducing-balance interest?
On a reducing-balance loan (used for home, car and most personal loans) interest is charged on the outstanding balance, which falls each month. Flat-rate quotes charge on the original amount and are more expensive than they look.
Does prepayment reduce EMI or tenure?
It depends on your lender and what you choose. Keeping the EMI the same and cutting the tenure usually saves more interest.
Why is most of my early EMI interest?
Interest is charged on the full balance at the start, so it takes up most of the EMI. Principal repayment grows as the balance falls.
Is there a prepayment penalty?
RBI rules bar prepayment charges on floating-rate loans to individual borrowers, but fixed-rate loans and some lenders’ products may differ. Check your loan agreement.
Is this financial advice?
No. It is an educational estimate; your lender’s statement has the binding figures.
Sources and further reading
By Thomas M, Registered Investment Adviser (South Carolina), who launched his own financial advisory firm in 2010. Last reviewed September 26, 2026. Found a mistake? Tell us; see our editorial policy.