About the EMI Calculator
An EMI, or Equated Monthly Installment, is the fixed sum you pay each month to repay a loan over an agreed period. It bundles together a portion of the principal (the amount you borrowed) and the interest (the lender’s charge) into one predictable payment. This calculator works out that figure instantly for home, car, personal and education loans, and also shows the total interest you will pay over the life of the loan and a complete month-by-month repayment schedule — so you can see the true cost of borrowing before you commit.
How EMI is calculated
The EMI formula for a reducing-balance loan is:
EMI = [P × R × (1 + R)N] / [(1 + R)N − 1]
where P is the principal, R is the monthly interest rate (the annual rate divided by 12 and by 100), and N is the number of monthly installments. For example, a ₹10,00,000 loan at 9% annual interest over 240 months (20 years) gives an EMI of about ₹8,997. Over the full term you would repay roughly ₹21,59,000 — meaning about ₹11,59,000 of that is interest, more than the size of a small loan in itself. That gap between what you borrow and what you repay is exactly why running the numbers first matters.
How each EMI splits between interest and principal
Although the EMI is constant, its make-up changes every month. Early in the loan the outstanding balance is large, so most of each payment goes toward interest and only a little reduces the principal. As the balance falls, the interest portion shrinks and a growing share chips away at the principal. This is called amortization, and the schedule in this tool lets you see it month by month — useful for understanding why prepaying early in a loan saves the most interest.
How tenure affects your EMI and total cost
Tenure is the biggest lever you control. A longer tenure lowers the monthly EMI but increases the total interest, because you borrow the money for longer. Here is the same ₹10,00,000 loan at 9%:
| Tenure | Monthly EMI | Total interest |
|---|---|---|
| 10 years | ₹12,668 | ₹520,109 |
| 15 years | ₹10,143 | ₹825,680 |
| 20 years | ₹8,997 | ₹1,159,342 |
| 25 years | ₹8,392 | ₹1,517,589 |
The lesson is to choose the shortest tenure whose EMI you can comfortably afford — it can save lakhs in interest.
How the interest rate affects your EMI
Even a one-percentage-point difference in rate matters over a long loan. For a ₹10,00,000 loan over 240 months:
| Annual rate | Monthly EMI | Total interest |
|---|---|---|
| 7% | ₹7,753 | ₹860,717 |
| 8% | ₹8,364 | ₹1,007,456 |
| 9% | ₹8,997 | ₹1,159,342 |
| 10% | ₹9,650 | ₹1,316,052 |
| 11% | ₹10,322 | ₹1,477,252 |
This is why it pays to compare lenders and to maintain a good credit score, which earns you a lower rate.
Fixed versus floating rates, and prepayment
A fixed rate keeps your EMI constant for the whole term; a floating rate moves with a market benchmark, so your EMI or tenure can change at each reset. If you have a floating loan, re-run this calculator whenever your rate changes. A prepayment — paying a lump sum on top of your EMIs — directly reduces the outstanding principal and therefore the interest you pay; because early payments are mostly interest, prepaying in the first years of a loan delivers the biggest savings.
Using it well
Enter tenure in months (a 15-year loan is 180), and treat the result as a planning figure: real loans may include processing fees, insurance or changing rates that this formula does not capture. To plan investments alongside your borrowing, try the SIP Calculator, and for the interest on deposits the Interest Rate Calculator. Every calculation here runs privately in your browser.
Frequently Asked Questions
How is EMI calculated?
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 number of monthly installments. The result is a fixed amount you pay every month until the loan is cleared.
Should I enter the rate as monthly or annual?
Enter the annual rate as your bank quotes it (for example 9). The calculator converts it to a monthly rate internally. Enter tenure in months — a 20-year home loan is 240 months.
Why does a longer tenure cost more even though the EMI is lower?
A longer tenure spreads the principal over more months, so each EMI is smaller — but you pay interest for longer, so the total interest rises substantially. The comparison table above shows the same ₹10,00,000 loan costing far more in interest over 25 years than over 10.
What is an amortization schedule?
It is a month-by-month breakdown of your loan showing how much of each EMI goes to interest versus principal, and the falling outstanding balance. Early on, most of the EMI is interest; as the balance drops, more goes to principal.
How do prepayments change things?
A lump-sum prepayment reduces your outstanding principal, which cuts either your remaining EMIs or your tenure (and the total interest). This calculator assumes no prepayment; after a prepayment, recalculate using the reduced balance as the new principal.
What is the difference between a fixed and a floating rate?
A fixed rate stays the same for the loan term, so your EMI never changes. A floating rate moves with the market benchmark, so your EMI (or tenure) can rise or fall over time. This tool calculates for a single fixed rate; for floating loans, re-run it whenever your rate is reset.
Does this work for home, car, personal and education loans?
Yes. The EMI formula is identical for all reducing-balance loans — only the typical amounts, rates and tenures differ. Enter the figures for any loan type to get its EMI.
Do my loan figures stay private?
Yes. The entire calculation runs in your browser; nothing you type is uploaded or stored on a server.