Calculate your monthly loan EMI with amortization schedule
An Equated Monthly Installment (EMI) is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. Equated monthly installments are used to pay off both interest and principal each month, so that over a specified number of years, the loan is paid off in full.
EMI = P × r × (1+r)^n / ((1+r)^n − 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly instalments. For example, ₹10,00,000 at 8.5% for 10 years (120 months) gives an EMI of about ₹12,399, a total repayment of about ₹14,87,828 and total interest of about ₹4,87,828.
Set the loan amount, annual interest rate and tenure in years using the sliders. The EMI, total interest, total payment and a principal-versus-interest pie chart update instantly. Below that you get an amortization schedule, which you can view monthly or yearly, and export as a CSV file that opens in Excel or Google Sheets.
A longer tenure lowers the EMI but raises the total interest, because you owe the balance for more months. On ₹10,00,000 at 8.5%, a 10-year loan has an EMI of about ₹12,399 and interest of about ₹4.88 lakh, while a 20-year loan has an EMI of about ₹8,678 but interest of about ₹10.83 lakh.
Interest is charged on the outstanding balance, which is highest at the start. On ₹10,00,000 at 8.5%, the first month interest is ₹10,00,000 × 8.5% ÷ 12 = about ₹7,083, so only about ₹5,315 of the ₹12,399 EMI reduces the principal. As the balance falls, the interest share shrinks and the principal share grows.
You can lower the EMI by borrowing less (a bigger down payment), choosing a longer tenure, or getting a lower interest rate, for example by negotiating or moving the loan to a cheaper lender. Note that a longer tenure reduces the monthly outgo but increases the total interest you pay over the life of the loan.
The result covers only principal and interest at a fixed rate. It does not include processing fees, GST on fees, insurance premiums, part-prepayment or foreclosure charges, or changes in a floating rate. It also assumes equal monthly instalments starting one month after the loan begins, so treat it as a close estimate and confirm exact figures with your lender.
The mathematical formula for calculating EMI is: 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 monthly installments.
Making a prepayment reduces the outstanding principal balance. This allows you to either lower your future monthly EMI amount or keep the EMI same and reduce the remaining tenure.
Yes, this calculator works for Home Loans, Personal Loans, Car Loans, Education Loans, and any other standard reducing balance loan products.
EMI stands for Equated Monthly Installment. It represents the fixed payment made by a borrower to a lender every month.