EMI Calculator
Calculate monthly loan EMI, total interest, and amortization schedule.
How to Use EMI Calculator
- 1Enter the loan amount (principal) you wish to borrow.
- 2Enter the annual interest rate offered by the lender.
- 3Enter the loan tenure and select whether it's in months or years.
- 4Your monthly EMI, total interest, and total payment are calculated instantly.
- 5Expand 'Show Amortization Schedule' to see a month-by-month breakdown of principal and interest.
Frequently Asked Questions
What is EMI?
EMI (Equated Monthly Installment) is a fixed payment amount made to a lender at a specified date each month. It consists of both principal repayment and interest, calculated to fully repay the loan over the chosen tenure.
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.
What is an amortization schedule?
An amortization schedule shows how each monthly payment is split between principal and interest, and the remaining balance after each payment. In early months, most of the EMI goes toward interest. Over time, the principal portion increases.
How can I reduce my EMI?
You can reduce EMI by: negotiating a lower interest rate, increasing the loan tenure (though this increases total interest paid), making a larger down payment to reduce the principal, or making part-prepayments during the loan.
About EMI Calculator
The EMI Calculator is an essential financial planning tool for anyone considering a home loan, car loan, personal loan, or any other type of installment credit. By computing your monthly EMI instantly, it helps you evaluate whether a loan fits your monthly budget before you commit.
The calculator uses the standard EMI formula used by banks worldwide: EMI = P × r × (1+r)^n / ((1+r)^n - 1). This formula accounts for compound interest and produces a fixed monthly payment that covers both interest charges and principal repayment over the entire loan tenure.
The visual breakdown bar shows the proportion of your total repayment that goes toward the principal versus interest. For a typical 20-year home loan at 8% interest, you may pay nearly as much in interest as the original loan amount — a fact that the breakdown makes immediately clear and that motivates many borrowers to make prepayments.
The amortization schedule is particularly valuable for financial planning. It shows exactly how much of each payment reduces your outstanding balance, letting you model the impact of additional payments, plan for refinancing, and understand the true cost of your loan over time.