Loan EMI Calculator
Calculate monthly installment, total interest, and loan amortization.
Yearly Repayment Schedule
Principal vs Interest| Year | Principal (₹) | Interest (₹) | Balance (₹) |
|---|
Payment Summary
Payable every month
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How Loan EMI Is Calculated
The Mathematical Formula
Banks and financial institutions worldwide use the reducing balance formula:
- P = Principal Loan Amount
- R = Monthly interest rate (Annual rate ÷ 12 ÷ 100)
- N = Loan tenure in months
Smart Loan Prepayment Tip
In the early years of a home or car loan, the majority of your monthly EMI goes towards paying off interest rather than principal.
Making just 1 extra EMI payment per year or increasing your EMI by 5% annually can cut your 20-year loan tenure down to under 14 years, saving you hundreds of thousands of Rupees in interest!
Frequently Asked Questions (FAQs)
What is an Equated Monthly Installment (EMI)?
An EMI is a fixed monthly payment made by a borrower to a bank or financial institution on a set calendar date. Each EMI consists of both principal repayment and interest charges.
Can I use this calculator for Car & Personal Loans?
Yes! Click the Home, Car, or Personal loan preset buttons at the top of the page. Car loans typically range from 8.5% to 11% for 3 to 7 years, while unsecured personal loans range from 11% to 18% for 1 to 5 years.
How does floating interest rate affect my EMI?
When benchmark interest rates (like the RBI repo rate) change, banks typically adjust your remaining loan tenure while keeping your monthly EMI constant. You can use this calculator to see what new tenure or EMI amount is needed if rates change.