Loan EMI Calculator
Estimate your monthly EMI, total interest and total repayment for a home loan, car loan, personal loan or other standard reducing-balance loan. Compare loan tenure and interest cost before you borrow.
Calculate your loan EMI
Enter the loan amount, annual rate and repayment tenure.
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| Year | Opening balance | Principal paid | Interest paid | Closing balance |
|---|
What is EMI?
EMI stands for Equated Monthly Instalment. It is the amount a borrower pays every month to repay a loan over a fixed tenure. In a reducing-balance loan, each EMI contains an interest portion and a principal portion. Early in the loan, interest usually forms a larger share of the payment. As the outstanding balance falls, more of the EMI goes toward principal.
This calculator is useful for comparing monthly affordability and the total cost of borrowing before taking a home loan, car loan, personal loan or similar instalment loan.
How to use the Loan EMI Calculator
- Select the currency you want to display.
- Enter the principal amount you plan to borrow.
- Enter the annual interest rate quoted by the lender.
- Enter the tenure in years and, if needed, extra months.
- Select Calculate EMI to see the monthly instalment, total interest, total repayment and year-wise amortization.
Loan EMI formula with example
The standard reducing-balance EMI formula is EMI = P × r × (1+r)n ÷ ((1+r)n − 1). The annual interest rate is divided by 12 to obtain the monthly rate, and the loan tenure is converted to the total number of monthly instalments.
| Example input | Value |
|---|---|
| Loan amount | ₹10,00,000 |
| Annual interest rate | 8.5% |
| Tenure | 5 years / 60 months |
| Purpose | Estimate EMI, interest and total repayment before borrowing |
Home loan, car loan and personal loan EMI
Home loan EMI
Home loans usually have larger principal amounts and longer tenures. A small rate difference can materially change total interest over 15–30 years.
Car loan EMI
Car loans usually have shorter tenures. Compare the monthly EMI with the total interest cost instead of choosing a tenure only because it produces the lowest EMI.
Personal loan EMI
Personal loans can carry higher interest rates than secured loans. Shortening the tenure can reduce total interest, but it also raises the monthly payment.
How loan amount, interest rate and tenure affect EMI
- Higher loan amount: increases the EMI and total repayment.
- Higher interest rate: increases both the EMI and total interest.
- Longer tenure: usually lowers the EMI but increases total interest paid.
- Shorter tenure: raises the EMI but can reduce the total interest burden.
Reducing balance vs flat interest rate
This calculator uses a reducing-balance method, where interest is calculated on the outstanding loan balance. A flat-rate loan calculates interest differently, often on the original principal for the full tenure. A flat percentage rate therefore should not be compared directly with a reducing-balance rate without converting the effective cost.
What is an amortization schedule?
An amortization schedule shows how the loan balance changes over time. Each EMI first covers the interest due for that month, and the remaining amount reduces the principal. The year-wise table above groups those monthly calculations so you can see how much principal and interest you pay each year.
Prepayment and extra charges
Making a permitted prepayment can reduce the outstanding principal and therefore reduce future interest. However, lenders may have specific rules for part-prepayment, foreclosure, processing fees, insurance, documentation charges or floating-rate changes.
The EMI shown here does not include those additional costs. Use the lender's official repayment schedule and terms for the final borrowing decision.
Common EMI calculation mistakes
- Comparing only the monthly EMI: always check total interest and total repayment.
- Using annual rate directly as the monthly rate: the EMI formula requires the monthly rate.
- Ignoring fees and insurance: these can increase the effective borrowing cost.
- Assuming a floating rate will never change: future EMI or tenure can change when the benchmark rate changes.
- Confusing flat and reducing rates: the same percentage can produce a very different borrowing cost.
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Frequently Asked Questions
What is EMI?
EMI is the monthly instalment used to repay a loan. It normally includes both principal repayment and interest.
How is EMI calculated?
A standard reducing-balance EMI uses the principal, monthly interest rate and number of monthly instalments in the EMI formula shown above.
Does a longer tenure reduce EMI?
Usually yes, but the total interest paid normally increases because the loan remains outstanding for longer.
Can I use this for home, car and personal loans?
Yes, for standard reducing-balance loans. Actual lender repayment schedules can differ because of fees, rate resets, insurance, taxes and prepayments.
Does this include processing fees?
No. The calculation covers principal and interest only unless a cost is explicitly entered as part of the principal.
Are my inputs stored?
The calculation runs in your browser. The values entered do not need to be sent to a server to produce the result.
Last updated: October 18, 2026. This is an estimation tool, not a loan offer. Verify lender-specific rates, fees, reset rules and repayment schedules before making a financial decision.