About the Loan EMI Calculator
An EMI (equated monthly instalment) is the fixed amount you repay every month on a loan. This EMI calculator works for home loans, car loans and personal loans, and shows the total interest and a year-by-year split between principal and interest.
How to use this calculator
- Enter the loan amount.
- Enter the annual interest rate offered by the lender.
- Choose the tenure in years.
- See your EMI, the total interest and the yearly breakdown.
Formula
EMI = P × i × (1 + i)^n ÷ [(1 + i)^n − 1], where P is the loan amount, i is the monthly interest rate and n is the number of monthly instalments. Interest is charged on the reducing balance.
Example
A ₹30 lakh loan at 8.5% for 20 years has an EMI of about ₹26,035. Over the full tenure you pay about ₹32.48 lakh in interest, which is more than the loan itself.
Frequently asked questions
Why is so much of my early EMI interest?
Interest is charged on the outstanding balance, which is highest at the start, so early EMIs are mostly interest and later ones mostly principal.
How can I reduce my total interest?
A shorter tenure, a lower rate or prepayments all reduce interest. Try the Loan prepayment calculator to see the effect.
Does my EMI change with a floating rate?
With a floating rate, lenders usually change either the EMI or the tenure when rates move. This calculator assumes a fixed rate for the whole tenure.
These results are estimates for illustration and education only, not investment advice.