EMI Calculator
Calculate your monthly loan EMI, total interest and a year-by-year amortisation schedule.
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Tool guide
What this tool does
The EMI Calculator works out the equated monthly instalment for any home, car, personal or education loan using the standard reducing-balance formula. It also shows the total interest you will pay, a principal-versus-interest breakdown and a downloadable year-wise amortisation schedule.
An EMI (equated monthly instalment) is the fixed amount you pay your lender every month until a loan is repaid. Each EMI contains two parts: interest on the outstanding balance and a repayment of principal. In the early years most of the EMI goes towards interest; as the balance falls, the principal share grows. Seeing this split helps you judge how expensive a loan really is, not just whether the monthly figure fits your budget.
The calculator uses the reducing-balance formula used by banks and NBFCs: EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the principal, r the monthly interest rate and n the number of months. Results are computed in your browser, so nothing you enter about your finances is shared.
How to use EMI Calculator
- Choose your currency so amounts are formatted correctly.
- Enter the loan amount you plan to borrow.
- Enter the annual interest rate quoted by your lender, for example 8.5.
- Enter the tenure and choose whether it is in years or months.
- Read your monthly EMI, total interest and total payment; the chart shows how much of the total is interest.
- Scroll to the amortisation schedule to see principal, interest and remaining balance for each year, and download it as CSV for a spreadsheet.
Tips for better results
- Compare offers by total interest, not only EMI: a longer tenure lowers the EMI but can increase total interest dramatically.
- Try a slightly shorter tenure. Even reducing a 20-year loan to 18 years can save a large amount of interest if the EMI is affordable.
- Many lenders allow part-prepayments; paying extra early in the loan reduces interest the most because the balance is highest then.
- Keep EMIs for all loans within roughly 40% of your take-home pay to leave room for savings and emergencies.
Common use cases
- Checking whether a home loan EMI fits your monthly budget before applying.
- Comparing two loan offers with different rates and tenures.
- Planning a car purchase and deciding how much down payment to make.
- Explaining to family members how much of a loan goes to interest over time.
Common mistakes to avoid
- Entering a monthly rate instead of the annual rate; banks quote rates per year.
- Ignoring processing fees, insurance and other charges that increase the real cost of borrowing.
- Assuming floating-rate loans keep the same EMI. When rates change, lenders adjust the EMI or the tenure.
- Treating the result as a sanction. Your lender’s final EMI may differ slightly due to rounding and the disbursement date.
Frequently asked questions
What formula does the EMI calculator use?
It uses the standard reducing-balance formula EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r is the annual rate divided by 12 and by 100, and n is the tenure in months.
Does a longer tenure always cost more?
Yes, for the same interest rate. A longer tenure reduces the monthly EMI but you pay interest for more months, so total interest rises.
Can I use this for a zero-interest loan?
Yes. With a 0% rate the EMI is simply the loan amount divided by the number of months, and total interest is zero.
Why is my bank’s EMI slightly different?
Banks may round the EMI, charge interest from the disbursement date or calculate the first instalment differently. The difference is usually small.
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