EMI Calculator
An EMI calculator tells you how much you will pay every month to repay a loan. Enter the loan amount, the annual interest rate and the tenure, and you will see the monthly EMI, the total interest you will pay over the life of the loan and how the balance falls year by year.
Results
Monthly EMI
₹8,678.23
- Total interest
- ₹10,82,776
- Total payment
- ₹20,82,776
- Principal + interest
- Number of payments
- 240
Your monthly EMI is ₹8,678.23 for 240 payments, with ₹10,82,776 in total interest.
Principal vs interest
- Principal₹10,00,000 (48.0%)
- Total interest₹10,82,776 (52.0%)
Yearly payment schedule (20 rows)
| Period | Principal paid | Interest paid | Total paid | Balance |
|---|---|---|---|---|
| Year 1 | ₹19,902 | ₹84,236 | ₹1,04,139 | ₹9,80,098 |
| Year 2 | ₹21,661 | ₹82,477 | ₹1,04,139 | ₹9,58,436 |
| Year 3 | ₹23,576 | ₹80,563 | ₹1,04,139 | ₹9,34,860 |
| Year 4 | ₹25,660 | ₹78,479 | ₹1,04,139 | ₹9,09,200 |
| Year 5 | ₹27,928 | ₹76,211 | ₹1,04,139 | ₹8,81,272 |
| Year 6 | ₹30,397 | ₹73,742 | ₹1,04,139 | ₹8,50,875 |
| Year 7 | ₹33,084 | ₹71,055 | ₹1,04,139 | ₹8,17,791 |
| Year 8 | ₹36,008 | ₹68,131 | ₹1,04,139 | ₹7,81,784 |
| Year 9 | ₹39,191 | ₹64,948 | ₹1,04,139 | ₹7,42,593 |
| Year 10 | ₹42,655 | ₹61,484 | ₹1,04,139 | ₹6,99,938 |
| Year 11 | ₹46,425 | ₹57,714 | ₹1,04,139 | ₹6,53,513 |
| Year 12 | ₹50,529 | ₹53,610 | ₹1,04,139 | ₹6,02,985 |
| Year 13 | ₹54,995 | ₹49,144 | ₹1,04,139 | ₹5,47,990 |
| Year 14 | ₹59,856 | ₹44,283 | ₹1,04,139 | ₹4,88,134 |
| Year 15 | ₹65,147 | ₹38,992 | ₹1,04,139 | ₹4,22,987 |
| Year 16 | ₹70,905 | ₹33,234 | ₹1,04,139 | ₹3,52,082 |
| Year 17 | ₹77,172 | ₹26,966 | ₹1,04,139 | ₹2,74,910 |
| Year 18 | ₹83,994 | ₹20,145 | ₹1,04,139 | ₹1,90,916 |
| Year 19 | ₹91,418 | ₹12,721 | ₹1,04,139 | ₹99,498 |
| Year 20 | ₹99,498 | ₹4,640 | ₹1,04,139 | ₹0 |
Show the calculation steps
- Monthly interest rate r = 8.5% ÷ 12 = 0.70833% (0.0070833 as a decimal).
- Number of monthly payments n = 20 years = 240 payments.
- (1 + r)^n = 5.4412, so EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1) = ₹8,678.23.
- Total payment = EMI × n = ₹8,678.23 × 240 = ₹20,82,776.
- Total interest = total payment − principal = ₹20,82,776 − ₹10,00,000 = ₹10,82,776.
- Lenders may round the EMI to the nearest whole currency unit, so your bank's figure can differ slightly.
What is an EMI?
EMI stands for equated monthly instalment: a fixed amount you pay your lender on a fixed date every month until the loan is repaid. Home loans, car loans and personal loans are all commonly repaid this way.
Each EMI has two parts. The interest part is charged on the balance you still owe, and the rest of the payment reduces the principal. Because the balance is highest at the start, early EMIs are mostly interest; near the end they are mostly principal.
How the EMI is calculated
The calculator first converts the annual rate into a monthly rate and the tenure into a number of monthly payments. It then uses the standard reducing-balance formula shown below, so interest is always charged on the outstanding balance only, not on the original amount.
The yearly schedule under the result is produced by applying that same monthly rate to the falling balance, month by month, and adding up each year.
What affects your EMI?
Three inputs decide your EMI, and small changes to them add up over a long tenure:
- Loan amount: a larger loan means a proportionally larger EMI.
- Interest rate: even a 0.5% difference can change total interest by a large amount on a long loan.
- Tenure: a longer tenure lowers the EMI but increases the total interest paid; a shorter tenure does the opposite.
Formula
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)
Total payment = EMI × n
Total interest = Total payment − P
Where:
- P
- = Principal, the amount borrowed
- r
- = Monthly interest rate (annual rate ÷ 12 ÷ 100)
- n
- = Number of monthly payments (tenure in years × 12)
Example calculation
A ₹10,00,000 loan at 8.5% for 20 years
Inputs
- Loan Amount
- ₹10,00,000
- Interest Rate
- 8.5 %
- Loan Tenure
- 20 years
Result
- Monthly EMI
- ₹8,678.23
- Total interest
- ₹10,82,776
- Total payment
- ₹20,82,776
- Number of payments
- 240
Step-by-step
- Monthly interest rate r = 8.5% ÷ 12 = 0.70833% (0.0070833 as a decimal).
- Number of monthly payments n = 20 years = 240 payments.
- (1 + r)^n = 5.4412, so EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1) = ₹8,678.23.
- Total payment = EMI × n = ₹8,678.23 × 240 = ₹20,82,776.
- Total interest = total payment − principal = ₹20,82,776 − ₹10,00,000 = ₹10,82,776.
Important notes
- The EMI assumes a fixed interest rate for the whole tenure. On a floating-rate loan the EMI or tenure can change when the rate changes.
- Processing fees, insurance and prepayment charges are not included.
- Some lenders round the EMI to the nearest whole currency unit, so their figure may differ slightly from this one.
Disclaimer: This calculator provides estimates for informational purposes and should not be considered financial advice. Actual figures from lenders, banks and investment products can differ because of fees, taxes, rounding rules and changing rates. Consult a qualified professional before making financial decisions.
Frequently asked questions
How is EMI calculated?
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly payments. If the interest rate is 0%, the EMI is simply the loan amount divided by the number of months.
Does a longer tenure reduce the EMI?
Yes, spreading repayment over more months lowers each EMI, but you pay interest for longer, so the total interest is higher. Compare a few tenures to find a balance between a comfortable EMI and a reasonable total cost.
Is the interest calculated on a reducing balance?
Yes. This calculator uses the reducing-balance method used by most banks, where interest each month is charged on the remaining principal. Flat-rate quotes, which charge interest on the original amount throughout, give a higher effective cost.
Can I use this for a home loan or a car loan?
Yes. The maths is the same for any loan repaid in equal monthly instalments, including home, car, education and personal loans. Use the rate and tenure offered by your lender.
Why is my bank's EMI slightly different?
Banks may round the EMI, apply interest from the day of disbursal rather than from the first month, or add fees. Ask your lender for a repayment schedule if you need exact figures.
Related calculators
- Simple Interest CalculatorWork out simple interest and the total amount payable from a principal, an annual interest rate and a time period, with a year-by-year breakdown.
- Compound Interest CalculatorSee how money grows with compound interest. Choose the compounding frequency to get the final amount, total interest and effective annual rate.
- SIP CalculatorEstimate the future value of a monthly SIP. See the amount invested, the estimated returns and how your investment could grow year by year.
- Home Loan EMI CalculatorCalculate your home loan EMI, total interest and repayment over 5 to 30 years, with a yearly principal and interest schedule.
Explore more in Loan & EMI Calculators.