EMI Calculator
Key takeaways
- Every ₹100 borrowed costs ₹215.93 to repay over 20 years — ₹100 of principal plus ₹115.93 of interest at 9%.
- The balance falls below half the loan only in month 168 (year 14 of 20) — early EMIs are interest-heavy.
- At 8.5% instead of 9%, total interest would be ₹1.91 L lower — ₹27.07 L in all.
Payment schedule
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | ₹46,818 | ₹2.23 L | ₹24.53 L |
| 2 | ₹51,210 | ₹2.19 L | ₹24.02 L |
| 3 | ₹56,013 | ₹2.14 L | ₹23.46 L |
| 4 | ₹61,268 | ₹2.09 L | ₹22.85 L |
| 5 | ₹67,015 | ₹2.03 L | ₹22.18 L |
| 6 | ₹73,302 | ₹1.97 L | ₹21.44 L |
About the EMI Calculator
An EMI (Equated Monthly Instalment) is the fixed amount you repay every month on a loan — part interest, part principal — until the loan is cleared. Early EMIs are mostly interest; as the outstanding balance falls, more of each EMI goes towards principal.
This calculator works out the EMI for any loan amount, interest rate and tenure, and shows the total interest you'll pay over the life of the loan.
Frequently asked questions
How is EMI calculated?
With the reducing-balance formula: EMI = P × r × (1 + r)ⁿ ÷ [(1 + r)ⁿ − 1], where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly instalments.
What happens to my EMI if I make a prepayment?
A part-prepayment reduces the outstanding principal. Lenders usually let you keep the EMI the same and shorten the tenure (which saves the most interest) or reduce the EMI and keep the tenure — your choice.
Does a longer tenure reduce my EMI?
Yes, a longer tenure lowers the monthly EMI, but you pay interest for more months, so the total interest cost rises. A shorter tenure means a higher EMI but less total interest.
What is the difference between fixed and floating interest rates?
A fixed rate keeps your EMI constant for the agreed period; a floating rate moves with the lender's benchmark, so your EMI or tenure changes when rates change. Floating rates are common for home loans.
Is EMI calculated on a flat or reducing balance?
This calculator uses the reducing-balance method, where interest is charged only on the outstanding principal — the standard for most loans. A "flat rate" charges interest on the full original amount throughout, which works out more expensive. Compare the two with our Flat vs Reducing calculator.
Disclaimer: This calculator is for information and education only. It is not investment advice and not a recommendation, and it is not a loan offer. The lender decides the actual interest rate, EMI, fees and eligibility, and whether insurance cover is required, and a floating rate can change during the loan. Charges you did not enter are not included. Every figure is computed solely by applying the formula and assumptions stated on this page to the inputs you entered.