EMI Calculator
Calculate your monthly loan installment for home, personal, car, education, or business loans, and see exactly how much goes to interest over the life of the loan.
Monthly EMI
for 240 months
How EMI Is Calculated
Every EMI (Equated Monthly Installment) is calculated using the reducing-balance method: interest is charged only on what you still owe, not on the original loan amount. Because of this, your EMI amount stays fixed for the entire tenure, but the mix shifts — early payments are interest-heavy, while later payments are principal-heavy, even though the total monthly figure never changes.
Choosing the Right Tenure
A longer tenure lowers your monthly EMI but increases the total interest you pay over the life of the loan, sometimes substantially. A shorter tenure raises your monthly outflow but reduces total interest paid. Use the amortization schedule above to see exactly how much of your money goes to the bank versus toward your actual asset at different tenure lengths.
Frequently Asked Questions
What is the EMI formula?
EMI = P × r × (1+r)^n / ((1+r)^n − 1), where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the loan tenure in months. This is the standard reducing-balance formula used by virtually all Indian lenders.
Why does my EMI stay the same but the interest portion decrease over time?
Because interest is calculated on your outstanding loan balance, which shrinks every month as you pay down principal. Early in the loan, most of your EMI goes toward interest; by the final years, most of it goes toward principal — even though the total EMI amount itself doesn't change.
Does prepaying my loan reduce the EMI or the tenure?
Most Indian lenders let you choose: keep the EMI the same and shorten the tenure (which saves more on total interest), or reduce the EMI and keep the original tenure. This calculator doesn't model prepayment directly, but reducing the tenure slider shows you the EMI difference for a shorter loan.
What's a typical interest rate for each loan type?
Rates vary by lender and your credit profile, but as rough starting points: home loans often run 8-9.5%, car loans 8.5-11%, personal loans 11-16%, and education loans 9-12%. Always check current rates with your specific lender — these are not guaranteed rates.