EMI Calculator
Calculate your Equated Monthly Installment (EMI) for any loan.
| Year | Principal | Interest | Total Pay | Balance |
|---|---|---|---|---|
| 1 | ₹66,327 | ₹82,456 | ₹1,48,783 | ₹9,33,673 |
| 2 | ₹72,190 | ₹76,593 | ₹1,48,783 | ₹8,61,483 |
| 3 | ₹78,571 | ₹70,212 | ₹1,48,783 | ₹7,82,912 |
| 4 | ₹85,516 | ₹63,267 | ₹1,48,783 | ₹6,97,396 |
| 5 | ₹93,075 | ₹55,708 | ₹1,48,783 | ₹6,04,321 |
| 6 | ₹1,01,302 | ₹47,481 | ₹1,48,783 | ₹5,03,019 |
| 7 | ₹1,10,256 | ₹38,527 | ₹1,48,783 | ₹3,92,763 |
| 8 | ₹1,20,002 | ₹28,781 | ₹1,48,783 | ₹2,72,762 |
| 9 | ₹1,30,609 | ₹18,174 | ₹1,48,783 | ₹1,42,153 |
| 10 | ₹1,42,153 | ₹6,630 | ₹1,48,783 | ₹0 |
Monthly EMI
₹12,399
Principal Amount
₹10,00,000
Total Interest
₹4,87,828
Total Payment
₹14,87,828
How the EMI Calculator works
Reviewed by Dinesh Babu · Last updated July 2026
EMI (Equated Monthly Instalment) is the fixed amount you repay every month on a loan, covering both interest and principal. This calculator computes your EMI from the loan amount, interest rate and tenure, and shows the total interest you will pay over the life of the loan plus a full month-by-month amortisation schedule.
The key idea is the reducing balance: interest each month is charged only on the principal still outstanding, not the original loan. So early EMIs are mostly interest and repay very little principal; as the balance falls, the interest slice shrinks and the principal slice grows. By the final months, almost your entire EMI is going to principal.
Because the EMI is fixed but its interest/principal split shifts over time, the total interest depends heavily on tenure. A longer tenure lowers the monthly EMI but raises the total interest, because you owe money to the lender for longer.
EMI formula
EMI = P × r × (1 + r)ⁿ / ((1 + r)ⁿ − 1)
P = principal, r = monthly interest rate (annual% ÷ 12 ÷ 100), n = number of months.
Why early EMIs feel like they achieve nothing
Many borrowers are shocked to see, a year into a loan, how little the outstanding principal has fallen. This is not a scam — it is arithmetic. Interest is always calculated on the balance you still owe, which is highest at the start, so most of your early money is rent on the borrowed capital.
This is exactly why prepaying early saves the most: a prepayment in year one wipes out principal that would otherwise have accrued interest for the entire remaining tenure.
Reading the amortisation schedule
- Interest portion = outstanding balance × monthly rate — it falls every month.
- Principal portion = EMI − interest portion — it rises every month.
- Outstanding balance = previous balance − principal repaid — it heads to zero at the last EMI.
- Total interest = (EMI × number of months) − loan amount.
A standard 5-year loan
A ₹10,00,000 loan at 9% p.a. for 5 years (60 months) works out to an EMI of about ₹20,758. Over the term you repay roughly ₹12.45 lakh in total — about ₹2.45 lakh of it interest. In the very first EMI, around ₹7,500 is interest and only ₹13,250 repays principal; by the last EMI that ratio is almost fully reversed.
How tenure changes the cost
Take the same ₹10 lakh at 9%. Over 3 years the EMI is higher but total interest is far lower; stretch it to 7 years and the EMI drops noticeably while total interest climbs well past ₹3 lakh. The monthly comfort of a long tenure is paid for in extra interest.
Common mistakes to avoid
- Judging a loan only by its EMI. Two loans with the same EMI can have very different total interest if their tenures differ.
- Ignoring processing fees, insurance and prepayment charges — the effective cost can be well above the headline interest rate.
- Assuming a longer tenure is cheaper because the EMI is smaller. It is the opposite: you pay more interest overall.
- Forgetting that a floating rate can rise, pushing up either your EMI or your tenure after you have signed.
Frequently asked questions
How is EMI calculated?+
Using the reducing-balance formula above: interest is charged on the outstanding principal each month, and the EMI is fixed so the loan is fully repaid by the end of the tenure. A ₹10,00,000 loan at 9% for 60 months gives an EMI of about ₹20,758.
Why is most of my early EMI going to interest?+
Interest is charged on the balance you still owe, which is largest at the start. So early EMIs are interest-heavy and repay little principal; the principal share rises every month as the balance falls. This split is called amortisation.
Does prepaying a loan reduce the EMI or the tenure?+
Usually the tenure — most lenders keep the EMI the same and shorten the loan, which cuts total interest the most. Some let you choose to lower the EMI instead. Prepaying early saves far more than prepaying late.
How can I reduce my EMI?+
Choose a longer tenure (lower EMI but more total interest), make a larger down payment to borrow less, negotiate a lower rate, or refinance to a cheaper loan. Balance a comfortable EMI against the extra interest a long tenure costs.
What is loan amortisation?+
The schedule showing how each EMI splits between interest and principal over time. Early payments are interest-heavy; later ones are principal-heavy. This calculator shows the full month-by-month breakdown.
Is a lower interest rate always better?+
Usually, but also compare processing fees, insurance loading and prepayment charges. The effective cost of the loan matters more than the headline rate alone.
Will my EMI change during the loan?+
On a fixed-rate loan, no. On a floating-rate loan, the rate can move with the market (in India, typically the RBI repo rate); lenders then adjust either your EMI or your tenure.