💰 Finance & Math
EMI Calculator
Calculate your monthly loan instalment, total interest payable, and get a full amortisation schedule.
₹10 L
8.5%
20 yr
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Monthly EMI
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Principal Amount
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Total Interest
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Total Payable
Principal
Interest
EMI Formula
EMI = P × r × (1+r)ⁿ / ((1+r)ⁿ − 1)
Where P = Principal loan amount, r = monthly interest rate (annual rate ÷ 12 ÷ 100), n = number of monthly instalments (tenure in years × 12). Total interest = (EMI × n) − P.
Frequently Asked Questions
What is EMI and how is it calculated?
EMI (Equated Monthly Instalment) is the fixed monthly amount you pay to repay a loan over its tenure. It is calculated using the formula: EMI = P × r × (1+r)ⁿ / ((1+r)ⁿ − 1), where P is the principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the total number of months.
Does a higher loan tenure reduce my EMI?
Yes. A longer tenure means smaller monthly instalments, making the loan more affordable month-to-month. However, you pay more total interest over the life of the loan. A shorter tenure increases the EMI but reduces total interest paid significantly.
What is the difference between reducing balance and flat rate interest?
This calculator uses the reducing balance method, which is the standard for home, car, and personal loans from banks. Interest is charged only on the outstanding principal each month, so it decreases over time. The flat rate method (used in some consumer finance schemes) charges interest on the original principal throughout, making it more expensive.
How do I reduce my EMI?
You can reduce your EMI by: (1) increasing the loan tenure, (2) making a larger down payment to reduce the principal, (3) negotiating a lower interest rate (or choosing a lender offering a lower rate), or (4) making part-prepayments during the loan to reduce the outstanding balance.
What does the amortisation schedule show?
The year-wise amortisation schedule shows how much of your EMI goes towards repaying the principal and how much goes towards interest each year, along with the outstanding loan balance at the end of each year. In early years most of the EMI is interest; over time the principal component increases.