Quick Tools
EMI Calculator
Enter the loan amount, interest rate and term to see your equated monthly instalment, how much interest you will pay and a year-by-year breakdown.
- Yearly breakdown
- Years or months
- No data stored
Loan details
Enter the amount borrowed, the yearly interest rate and how long you will take to repay it.
Term in
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | 82,021.51 | 43,989.65 | 417,978.49 |
| 2 | 90,161.95 | 35,849.22 | 327,816.54 |
| 3 | 99,110.31 | 26,900.86 | 228,706.23 |
| 4 | 108,946.76 | 17,064.40 | 119,759.47 |
| 5 | 119,759.47 | 6,251.70 | 0.00 |
Monthly EMI
10,500.93
EMI stands for equated monthly instalment. Early instalments are mostly interest; later ones are mostly principal.
What an EMI is and how it is worked out
An EMI, or equated monthly instalment, is the fixed amount you pay each month to repay a loan. It covers both the interest and a slice of the original amount, which is why the payment stays the same while the balance falls.
The formula
EMI = P x r x (1 + r)^n / ((1 + r)^n - 1), where P is the amount borrowed, r is the monthly interest rate (the yearly rate divided by 12 and by 100) and n is the number of monthly instalments. The calculator applies this for you and handles the zero-interest case, where the EMI is simply the amount divided by the number of months.
Because r is applied to the outstanding balance each month, early instalments are mostly interest. As the balance shrinks, a larger share of each payment reduces the principal. The yearly table beneath the calculator shows this shift directly.
Using the calculator
- 1Enter the loan amount you plan to borrow.
- 2Enter the annual interest rate quoted by the lender.
- 3Set the term and choose whether it is in years or months.
- 4Read the EMI, the total interest and the total you will repay.
What changes the EMI most
| Term | Monthly EMI | Total interest |
|---|---|---|
| 3 years | 16,016 | 76,593 |
| 5 years | 10,501 | 130,056 |
| 10 years | 6,470 | 276,385 |
| 15 years | 5,221 | 439,802 |
A longer term lowers the monthly payment but raises the total interest sharply. Stretching a loan from five to ten years cuts the EMI by about 40%, yet more than doubles the interest paid.
Ways to pay less interest
- Choose the shortest term you can afford, since interest accrues for fewer months.
- Make a larger down payment so you borrow less in the first place.
- Prepay when you can, as long as there is no penalty and the extra goes to principal.
- Compare rates, because a difference of 0.5% on a large loan adds up to a real sum.
Related calculators
The Loan Calculator shows what extra monthly payments save, the Simple Interest Calculator covers flat-rate borrowing, and the Compound Interest Calculator shows the same maths working for you in savings.
Frequently asked questions
How is EMI calculated?
EMI = P x r x (1 + r)^n / ((1 + r)^n - 1), where P is the loan amount, r the monthly rate and n the number of months.
Does a longer tenure reduce the EMI?
Yes, the monthly payment falls, but you pay interest for longer, so the total cost of the loan rises.