EMI / Loan Calculator
Your monthly instalment, the total interest you will pay, and a year-by-year repayment schedule.
This is a maths tool, not financial advice. Your lender may add processing fees, insurance or taxes that are not included here.
■ principal ■ interest
| Year | Principal paid | Interest paid | Balance left |
|---|
How to use it
- Enter the amount you want to borrow.
- Drag the interest rate and tenure sliders to match your loan offer.
- Read your monthly instalment at the top, and scroll the schedule to see how the balance falls each year.
The formula, written out
An EMI is not the loan divided by the number of months. It is worked out so that every payment is identical, while the split between interest and principal inside it shifts each month:
EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1)
Here P is the amount borrowed, n is the number
of monthly instalments, and r is the monthly rate
— the annual rate divided by 12 and then by 100. An 8.5 percent loan
has a monthly rate of about 0.0071, not 8.5.
Which lever actually changes what you pay
Three things set your EMI, and they do not pull with equal force.
Tenure is the one people reach for, and it is the most misleading. Stretching a loan lowers the monthly figure and raises the total cost, often enormously, because you are paying interest on a large outstanding balance for years longer. A twenty-year home loan can cost more in interest than the house did.
The rate moves the total sharply. Half a percentage point on a long loan is worth far more than it sounds, which is why refinancing is worth checking every few years.
Prepayment is the lever the schedule below makes visible. Money paid early goes almost entirely against principal, and removes every future interest payment that principal would have generated. One extra instalment a year can cut years off a long loan.
Frequently asked questions
What does EMI actually stand for?
Equated Monthly Instalment — a fixed amount paid every month that covers both interest and a slice of the principal, sized so the loan is exactly cleared at the end of the term.
Why is so much of my early payment interest?
Interest is charged on the balance still owed, which is highest at the start. On a 20-year loan at 8.5%, roughly 70% of your first payment is interest and only 30% reduces the loan.
Does a longer tenure make the loan cheaper?
It lowers the monthly payment but raises the total cost, because you are borrowing the money for longer. Compare the total interest figure at two different tenures to see the trade-off.
Is this the exact figure my bank will charge?
The EMI maths is standard and will match. The total will differ if your lender adds processing fees, insurance, or uses a slightly different day-count convention. This is a calculator, not financial advice — check the figures with your lender before committing.