EMI Calculator
Loans & EMIWork out exactly what a loan will cost each month — and how extra payments can shrink the interest and clear it sooner.
In short: The EMI Calculator is a free online tool that lets you calculate the monthly instalment, total interest and payoff for any loan — instantly, with charts, a worked example and the exact formula.
Your inputs
Your inputs
- Loan amount
- ₹20,00,000
- Interest rate
- 9%
- Loan tenure
- 20 yrs
- Extra monthly payment
- ₹0
- One-time prepayment
- ₹0
Monthly EMI
₹17,995
Total interest
₹23,18,685
Over 20y 1m
Total payment
₹43,18,685
Principal + interest
Over the full term you'll repay about ₹43,18,685 — ₹23,18,685 of that is interest, roughly 116% on top of what you borrow. A shorter tenure or extra payments cut this sharply.
Outstanding balance
Balance with your payments vs the standard schedule
Year-wise breakdown
| Year | Principal paid | Interest paid | Balance |
|---|---|---|---|
| 1 | ₹37,454 | ₹1,78,480 | ₹19,62,546 |
| 2 | ₹40,968 | ₹1,74,967 | ₹19,21,578 |
| 3 | ₹44,811 | ₹1,71,124 | ₹18,76,767 |
| 4 | ₹49,014 | ₹1,66,920 | ₹18,27,753 |
| 5 | ₹53,612 | ₹1,62,322 | ₹17,74,141 |
| 6 | ₹58,641 | ₹1,57,293 | ₹17,15,500 |
| 7 | ₹64,142 | ₹1,51,792 | ₹16,51,357 |
| 8 | ₹70,159 | ₹1,45,775 | ₹15,81,198 |
| 9 | ₹76,741 | ₹1,39,194 | ₹15,04,457 |
| 10 | ₹83,940 | ₹1,31,995 | ₹14,20,518 |
Principal and interest paid each year with the closing balance (includes any extra payments).
How the EMI Calculator works
Formula
- P
- Principal loan amount
- r
- Monthly interest rate (annual ÷ 12 ÷ 100)
- n
- Number of monthly instalments
Step-by-step calculation
Worked with the default values.
- 1
Monthly rate (r)
9% ÷ 12 ÷ 100
= 0.0075
- 2
EMI
P × r × (1+r)ⁿ / ((1+r)ⁿ − 1)
= ₹17,995
How it works
- Early EMIs are mostly interest; later EMIs are mostly principal.
- A longer tenure lowers the monthly EMI but raises the total interest you pay.
- Extra monthly payments and a one-time prepayment go straight against principal, cutting total interest and clearing the loan months or years earlier.
Examples
₹20 lakh at 9% p.a. for 20 years
EMI ≈ ₹17,995 with about ₹23.2 lakh paid as interest.
Add ₹3,000/month extra on the same loan
You save several lakhs in interest and finish the loan years ahead of schedule.
Understanding the EMI Calculator
What an EMI really is
An Equated Monthly Instalment (EMI) is the fixed sum you pay a lender every month until a loan is repaid. Each payment bundles two things: the interest due on the outstanding balance, and a slice of the principal. Because the amount stays constant, EMIs make an otherwise daunting purchase — a home, a car, a big-ticket expense — manageable and predictable across years.
The EMI is derived from three inputs: the principal (P), the monthly interest rate (r), and the number of instalments (n). The standard formula is EMI = P × r × (1 + r)ⁿ / ((1 + r)ⁿ − 1). You don't need to compute it by hand — the calculator does — but understanding the drivers helps you make better borrowing choices.
How the split shifts over time
A crucial feature of EMIs is that the principal–interest split changes as the loan ages, even though the total EMI stays the same. In the early months, most of your payment covers interest because the outstanding balance is large. As the balance shrinks, each EMI chips away more principal and less interest.
This is why the outstanding balance falls slowly at first and accelerates later. It also explains why prepaying early is so powerful — you remove principal while it is still large, wiping out all the future interest that balance would have generated.
Tenure, rate and total cost
Two levers control what a loan actually costs you:
- Tenure: A longer tenure lowers the monthly EMI but raises total interest, because you owe the balance for longer. A shorter tenure does the opposite. Choose the shortest term your budget comfortably allows.
- Rate type: Always compare loans on the reducing-balance rate. A "flat" rate charges interest on the full original amount for the whole term, so a 10% flat rate can cost as much as an 18% reducing-balance rate.
Getting ahead with prepayments
Extra payments are the single best way to cut a loan's cost. Every rupee you pay above your EMI goes straight against principal, and because interest is charged on the outstanding balance, that removes all the future interest the balance would have accrued.
Use the extra-monthly and one-time prepayment fields to model this. Directing an annual bonus into a one-time prepayment, or adding a modest amount to each EMI, can save several lakhs of interest and clear the loan years ahead of schedule — usually with no prepayment penalty on floating-rate individual loans under RBI rules.
Pros
- Fixed monthly amount makes budgeting predictable across the whole tenure.
- Spreads a large purchase over years, making it affordable without draining savings.
- Reducing-balance interest means your cost falls as you repay the principal.
- Flexible tenure lets you balance a lower EMI against total interest paid.
Cons
- Total interest over a long tenure can rival or exceed the principal itself.
- Early EMIs are mostly interest, so the outstanding balance falls slowly at first.
- A missed EMI attracts penalties and damages your credit score.
Tips
- 1Pick the shortest tenure your budget comfortably allows to minimise total interest.
- 2Use annual bonuses for one-time prepayments — early prepayments save the most interest.
- 3Even a small extra monthly payment can shave months or years off the loan.
- 4Compare offers on the effective reducing-balance rate, not the advertised flat rate.
- 5Keep your total EMIs under 40–50% of net income to stay financially comfortable.
Frequently asked questions
Everything you need to know about the EMI Calculator.
What is an EMI?
How do extra monthly payments help?
When is the one-time prepayment applied here?
Does a longer tenure reduce my cost?
What is the difference between flat and reducing balance interest?
How is my EMI split between principal and interest?
What is a good EMI-to-income ratio?
Can I change my EMI after the loan starts?
What happens if I miss an EMI payment?
Are there charges for prepaying a loan?
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