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FinCalc India

EMI Calculator

An EMI (Equated Monthly Instalment) is the fixed amount you pay a lender every month until a loan is fully repaid. Each EMI covers the interest due for the month plus a part of the principal.

Enter the loan amount, interest rate and tenure to see your monthly EMI, how much interest you will pay in total, and a year-by-year breakup of principal and interest.

Assumptions used
  • Interest is calculated on a monthly reducing balance.
  • The interest rate is constant for the whole tenure.
  • No processing fee, insurance or other charges are included.

Enter your details

₹
10,00010,00,00,000

Total amount you want to borrow.

%
130

Annual rate quoted by the lender (reducing balance).

years
130

Repayment period in years.

Results

Monthly EMI

₹22,493

Total Interest Payable
₹28,98,356
Total Payment (Principal + Interest)
₹53,98,356
Principal Amount
₹25,00,000
  • Principal₹25.00 L(46%)
  • Interest₹28.98 L(54%)
Year-wise amortisation schedule (20 rows)
YearPrincipal PaidInterest PaidTotal PaidOutstanding Balance
1₹46,818₹2,23,100₹2,69,918₹24,53,182
2₹51,210₹2,18,708₹2,69,918₹24,01,973
3₹56,013₹2,13,904₹2,69,918₹23,45,959
4₹61,268₹2,08,650₹2,69,918₹22,84,691
5₹67,015₹2,02,903₹2,69,918₹22,17,676
6₹73,302₹1,96,616₹2,69,918₹21,44,375
7₹80,178₹1,89,740₹2,69,918₹20,64,197
8₹87,699₹1,82,219₹2,69,918₹19,76,498
9₹95,926₹1,73,992₹2,69,918₹18,80,572
10₹1,04,924₹1,64,993₹2,69,918₹17,75,647
11₹1,14,767₹1,55,151₹2,69,918₹16,60,880
12₹1,25,533₹1,44,385₹2,69,918₹15,35,347
13₹1,37,309₹1,32,609₹2,69,918₹13,98,038
14₹1,50,189₹1,19,728₹2,69,918₹12,47,849
15₹1,64,278₹1,05,640₹2,69,918₹10,83,571
16₹1,79,689₹90,229₹2,69,918₹9,03,882
17₹1,96,545₹73,373₹2,69,918₹7,07,338
18₹2,14,982₹54,936₹2,69,918₹4,92,356
19₹2,35,149₹34,769₹2,69,918₹2,57,207
20₹2,57,207₹12,711₹2,69,918₹0

Values are aggregated per year. The final row may be a partial year.

How EMI is calculated

Lenders in India use the reducing-balance method. Interest for a month is charged only on the outstanding principal, so as you repay, the interest portion of each EMI falls and the principal portion rises, even though the EMI stays constant.

EMI = P × r × (1 + r)^n ÷ [ (1 + r)^n − 1 ]

  • P = principal (loan amount)
  • r = monthly interest rate = annual rate ÷ 12 ÷ 100
  • n = loan tenure in months

When the interest rate is 0%, the formula reduces to EMI = P ÷ n. Our calculator handles this edge case and never returns an invalid result.

Worked example

Suppose you borrow ₹25,00,000 for 20 years at 9% per annum. The monthly rate is 9 ÷ 12 ÷ 100 = 0.0075 and n = 240 months.

  1. (1 + 0.0075)^240 ≈ 6.009
  2. EMI = 25,00,000 × 0.0075 × 6.009 ÷ (6.009 − 1)
  3. EMI ≈ ₹22,493 per month
  4. Total payment ≈ ₹53.98 lakh, of which about ₹28.98 lakh is interest.

Factors that affect your EMI

Loan tenure

A longer tenure lowers the EMI but increases total interest because you owe principal for longer. A shorter tenure raises the EMI but can save several lakh rupees in interest on a home loan.

Interest rate

Even a 0.5% difference in rate changes the EMI and total interest noticeably over 15–20 years. Floating-rate loans re-price when the RBI repo rate or the lender's benchmark changes; lenders usually keep the EMI fixed and adjust the tenure instead.

Prepayment

Paying a lump sum reduces the outstanding principal. Because interest is charged on the reducing balance, an early prepayment cuts total interest far more than the same amount paid near the end of the tenure. Most floating-rate home loans to individuals carry no prepayment penalty.

How to use this EMI calculator

  • Drag the sliders or type exact values for loan amount, rate and tenure.
  • Read the monthly EMI, total interest and total payment instantly.
  • Open the amortisation schedule to see principal and interest split for every year.
  • Use Reset to return to the default scenario.
Longer tenure, lower EMI, much higher interest
TenureEMI on ₹25,00,000 @ 9%Total interest
10 years≈ ₹31,670≈ ₹13.0 lakh
15 years≈ ₹25,357≈ ₹20.6 lakh
20 years≈ ₹22,493≈ ₹29.0 lakh
25 years≈ ₹20,981≈ ₹37.9 lakh

This calculator is for education and illustration only. Results are estimates based on the inputs and assumptions shown and are not financial, investment, tax or legal advice. Verify figures with your bank, a registered adviser or the relevant government department before acting.

Frequently asked questions

What is EMI in a loan?

EMI stands for Equated Monthly Instalment. It is the fixed monthly payment made to a lender that combines interest for the month and repayment of part of the principal, so the loan is cleared by the end of the tenure.

Does this EMI calculator use reducing or flat interest?

It uses the reducing-balance method, which is how banks and NBFCs price home, car and personal loans. Interest each month is charged only on the outstanding principal.

How can I reduce my EMI?

Choose a longer tenure, negotiate a lower interest rate, make a larger down payment so you borrow less, or prepay part of the principal and ask the lender to recompute the EMI.

Is the EMI the same every month?

On a fixed-rate loan, yes. On a floating-rate loan the EMI stays the same when the benchmark rate changes only if the lender adjusts the tenure; otherwise the EMI is revised.

Does prepaying a loan save interest?

Yes. Since interest is charged on the reducing balance, prepaying principal early in the tenure removes many months of future interest. The earlier you prepay, the larger the saving.

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