EMI Calculator
An EMI (Equated Monthly Instalment) is the fixed amount you repay every month on a loan until it is fully cleared. Use this free EMI calculator to find your monthly instalment for any loan — enter the loan amount, interest rate and tenure to instantly see your EMI, the total interest you'll pay, and a clear breakdown of principal versus interest.
- Principal
- ₹10,00,000
- Total Interest
- ₹10,82,776
- Total Payment
- ₹20,82,776
Monthly EMI
₹8,678
- Principal48%
- Interest52%
Formula
EMI = P × r × (1 + r)ⁿ ÷ [(1 + r)ⁿ − 1]
- P
- Principal — the loan amount you borrow.
- r
- Monthly interest rate = annual rate ÷ 12 ÷ 100.
- n
- Loan tenure in months (years × 12).
The same reducing-balance formula applies to home, personal, car and education loans — only the typical amounts, rates and tenures differ.
Worked example
Suppose you take a loan of ₹10,00,000 at an annual interest rate of 8.5% for a tenure of 20 years (240 months).
- Loan Amount (P)
- ₹10,00,000
- Annual Interest Rate
- 8.5%
- Tenure
- 20 years (240 months)
The monthly EMI works out to about ₹8,678. Over 20 years you repay roughly ₹20,82,776 in total — of which around ₹10,82,776 is interest on top of the ₹10,00,000 you borrowed.
Year-by-year repayment breakdown
Based on the default EMI Calculator values above — the loan amount, interest rate and tenure shown in the calculator. Adjust the sliders to recalculate your own figures.
- Monthly EMI
- ₹8,678
- Total interest
- ₹10,82,776
- Total payment
- ₹20,82,776
- Interest / principal
- 108%
In the first year, about 81% of what you pay goes towards interest rather than reducing the balance. From year 13 onwards, more of each year's payments goes to principal than to interest.
| Year | Principal paid | Interest paid | Total paid | Balance |
|---|---|---|---|---|
| 1 | ₹19,899 | ₹84,237 | ₹1,04,136 | ₹9.80 Lakh |
| 2 | ₹21,659 | ₹82,478 | ₹1,04,137 | ₹9.58 Lakh |
| 3 | ₹23,572 | ₹80,563 | ₹1,04,135 | ₹9.35 Lakh |
| 4 | ₹25,657 | ₹78,480 | ₹1,04,137 | ₹9.09 Lakh |
| 5 | ₹27,924 | ₹76,212 | ₹1,04,136 | ₹8.81 Lakh |
| 6 | ₹30,392 | ₹73,744 | ₹1,04,136 | ₹8.51 Lakh |
| 7 | ₹33,079 | ₹71,057 | ₹1,04,136 | ₹8.18 Lakh |
| 8 | ₹36,003 | ₹68,133 | ₹1,04,136 | ₹7.82 Lakh |
| 9 | ₹39,185 | ₹64,951 | ₹1,04,136 | ₹7.43 Lakh |
| 10 | ₹42,648 | ₹61,487 | ₹1,04,135 | ₹7 Lakh |
| 11 | ₹46,418 | ₹57,718 | ₹1,04,136 | ₹6.54 Lakh |
| 12 | ₹50,522 | ₹53,615 | ₹1,04,137 | ₹6.03 Lakh |
| 13 | ₹54,986 | ₹49,149 | ₹1,04,135 | ₹5.48 Lakh |
| 14 | ₹59,848 | ₹44,289 | ₹1,04,137 | ₹4.88 Lakh |
| 15 | ₹65,137 | ₹38,999 | ₹1,04,136 | ₹4.23 Lakh |
| 16 | ₹70,894 | ₹33,241 | ₹1,04,135 | ₹3.52 Lakh |
| 17 | ₹77,161 | ₹26,975 | ₹1,04,136 | ₹2.75 Lakh |
| 18 | ₹83,982 | ₹20,155 | ₹1,04,137 | ₹1.91 Lakh |
| 19 | ₹91,404 | ₹12,731 | ₹1,04,135 | ₹99,630 |
| 20 | ₹99,630 | ₹4,652 | ₹1,04,282 | ₹0 |
How the EMI calculator works
This calculator uses the standard reducing-balance method that banks and NBFCs in India use. As you move the sliders for loan amount, interest rate and tenure, it recalculates your monthly instalment in real time and updates the breakdown chart so you can see how much of your repayment goes toward interest.
Why your EMI matters
Your EMI determines how much of your monthly income is committed to loan repayment. Lenders typically prefer your total EMIs to stay within 40–50% of your take-home pay. Trying different loan amounts and tenures here helps you find an EMI that fits your budget before you apply.
Tips to reduce your EMI and total interest
- Make a larger down payment to borrow less principal.
- Choose a shorter tenure if you can afford a higher EMI — it cuts total interest sharply.
- Compare interest rates across lenders; even 0.5% makes a real difference over 15–20 years.
- Prepay when you can — putting lump sums toward the principal shortens the loan and saves interest.
Frequently asked questions
What is EMI?
EMI stands for Equated Monthly Instalment — the fixed payment you make to your lender each month. Every EMI covers part of the interest and part of the principal, so the outstanding loan reduces steadily until it reaches zero at the end of the tenure.
How is EMI calculated?
EMI is calculated using the reducing-balance formula EMI = P × r × (1+r)ⁿ ÷ [(1+r)ⁿ − 1], where P is the principal, r is the monthly interest rate and n is the number of months. This calculator applies that formula instantly as you change any input.
Does a longer tenure reduce my EMI?
Yes. A longer tenure spreads the principal over more months, so each monthly EMI is smaller. However, you pay interest for longer, so the total interest — and the overall cost of the loan — increases.
What happens to EMI if the interest rate changes?
A higher interest rate increases your EMI (or, on a floating-rate loan, may extend your tenure), while a lower rate reduces it. Even a small change in rate can noticeably change the total interest over a long tenure.
Is this EMI calculator free to use?
Yes. This EMI calculator is completely free, works instantly in your browser, and requires no sign-up. You can run as many calculations as you like.