EMI Calculator

EMI Calculator estimates the fixed monthly instalment for a reducing-balance loan using the principal, annual interest rate, and tenure in years. It also separates total repayment into principal and estimated interest.

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What it does

Use it to compare loan sizes, rates, or tenures before speaking with a lender. A longer tenure normally lowers the monthly instalment but increases total interest.

The standard formula is EMI = P × r × (1+r)^n ÷ ((1+r)^n−1), where P is principal, r is the monthly rate, and n is the number of monthly payments.

How to use this tool

  1. Enter the loan amount: Type the amount you plan to borrow, excluding any down payment.
  2. Enter the annual rate: Use the lender’s annual interest rate, such as 8.5 for 8.5%.
  3. Set the tenure: Enter the repayment period in years; the calculator converts it to monthly instalments.
  4. Compare the totals: Review EMI, total interest, and total payment. Change one input at a time to compare scenarios.

Input and output

Input

  • Loan Amount in rupees
  • Annual Interest Rate as a percentage
  • Tenure in years

Output

  • Estimated monthly EMI
  • Total interest across the tenure
  • Total principal plus interest

How it works

Monthly compounding assumption

The annual percentage is divided by 12 and applied to the outstanding balance for each monthly period.

Reducing balance

Early instalments contain more interest; later instalments contain more principal, even though the EMI stays level.

Practical example

Scenario
Estimate a ₹10,00,000 loan at 8.5% for 20 years.
Action
Enter 1000000, 8.5, and 20.
Input
P = ₹10,00,000; annual rate = 8.5%; n = 240 months
Expected result
Approximate EMI ₹8,678; total interest ₹10,82,776; total payment ₹20,82,776. Rounding may vary.

Limitations

  • The estimate assumes a constant rate and equal monthly payments.
  • Processing fees, insurance, taxes, prepayments, late fees, and rate resets are not included.
  • A lender may use different day-count, rounding, or disbursement rules.
  • Results are for planning and are not a loan offer or financial advice.

Frequently Asked Questions

What does EMI mean?

Equated Monthly Instalment: a scheduled monthly payment containing both interest and principal.

Does a longer tenure save money?

It usually reduces the monthly EMI but increases the number of interest-bearing months and therefore total interest.

Can I use this for a floating-rate loan?

Only as a snapshot using the current assumed rate. Future rate changes will alter the payment or tenure.

Why is the lender quote different?

The lender may include fees, insurance, a different compounding convention, or rounded payment schedules.