EMI calculator: monthly loan instalment, interest and repayment schedule
An EMI (equated monthly instalment) is the fixed amount you pay each month until a loan is cleared. This calculator shows the instalment, how much of what you repay is interest, and how the balance falls year by year.
How to use this calculator
- Enter the loan amount you want to borrow.
- Enter the yearly interest rate the lender quotes. Use the reducing-balance rate, which is the usual kind for home, car and personal loans.
- Enter the term and choose whether you typed it in years or months.
- Read the EMI and the total interest. Change the term or rate and watch both move; the chart and table below update at once.
Worked examples
Example 1
A ₹10,00,000 loan at 9.5% a year for 10 years.
You enter
| Loan amount | ₹10,00,000 |
|---|---|
| Interest rate (per year) | 9.5% |
| Loan term | 10 |
| Term in | Years |
You get
| Monthly EMI | ₹12,940 |
|---|---|
| Total interest | ₹5,52,771 |
| Total you repay | ₹15,52,771 |
| Interest as a share of the repayment | 35.6% |
Example 2
The same loan stretched to 20 years to get a smaller EMI.
You enter
| Loan amount | ₹10,00,000 |
|---|---|
| Interest rate (per year) | 9.5% |
| Loan term | 20 |
| Term in | Years |
You get
| Monthly EMI | ₹9,321 |
|---|---|
| Total interest | ₹12,37,115 |
| Total you repay | ₹22,37,115 |
| Interest as a share of the repayment | 55.3% |
How it works
Each EMI covers two things: the interest on the balance still owed and a slice of the principal. In the early years most of the instalment is interest; later most is principal. That is why prepaying early saves far more than prepaying near the end.
A longer term lowers the EMI but raises the total interest, often by a lot. Compare two terms before choosing: the cheaper monthly payment is not the cheaper loan.
Formula
EMI = P x i x (1 + i)^n / ((1 + i)^n - 1), where P is the loan amount, i is the monthly rate (yearly rate / 12 / 100) and n is the number of months.
Common questions
Does the EMI change if interest rates change?
On a floating-rate loan the lender may change the rate, and then either the EMI or the term changes. This calculator uses one rate for the whole term.
Are processing fees included?
No. Fees, insurance and taxes are extra and make the loan cost more than shown.
What is the difference between flat and reducing rate?
A flat rate charges interest on the original amount for the whole term and is much costlier than the same number on a reducing balance. Use the flat-rate calculator to convert it.
Learn more
Read the lesson Understanding and managing debt on pusaram.com for the ideas behind this calculator.
Calculators give estimates for learning and planning. They are not financial, tax, legal or medical advice, and results depend entirely on the numbers you enter. Check rates, limits and rules with an official source or a qualified professional before acting.