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🏦 Finance Tool

EMI
Calculator

Calculate your monthly loan payment (EMI), total interest, and full amortization schedule instantly.

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₹

Monthly EMI

₹22,727.84

per month for 24 months

Principal Amount

₹5,00,000

Total Interest

₹45,468.1

Total Amount Payable

₹5,45,468.1

PrincipalInterest (8.3%)

Frequently Asked Questions

What is EMI?▾
EMI (Equated Monthly Installment) is a fixed amount paid every month to repay a loan. It includes both the principal repayment and the interest component.
How is EMI calculated?▾
EMI = P × r × (1+r)^n / ((1+r)^n − 1), where P is the principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the number of monthly installments.
What happens if I extend my loan tenure?▾
A longer tenure reduces your monthly EMI but significantly increases the total interest you pay. Shorter tenures mean higher EMIs but lower overall cost.
What is an amortization schedule?▾
An amortization schedule shows the breakdown of each monthly payment into principal and interest components, and the outstanding balance after each payment.
How can I reduce my EMI?▾
To reduce your EMI: (1) Make a larger down payment to reduce the principal. (2) Negotiate a lower interest rate or refinance. (3) Choose a longer loan tenure (reduces EMI but increases total interest). (4) Make prepayments to reduce the outstanding principal. (5) Shift to a lender offering lower rates.
What is the difference between flat rate and reducing balance EMI?▾
Flat rate: interest is calculated on the original loan amount for the entire tenure. Reducing balance: interest is calculated only on the outstanding principal each month. Reducing balance is more favorable to borrowers — a 10% flat rate is equivalent to approximately 18–20% reducing balance rate.
What is a prepayment penalty?▾
A prepayment penalty is a fee charged by some lenders when you repay your loan earlier than scheduled. In many countries (including India), RBI regulations prohibit prepayment penalties on floating-rate home loans. Always check your loan agreement before making prepayments.
🏦 Complete EMI & Loan Guide

How EMI Works and Loan Basics

Equal installment repayment, principal repayment, amortization, and interest calculation fully explained.

EMI (Equated Monthly Installment) Formula

EMI is a method of repaying loans in equal monthly amounts. The formula is: EMI = P × r × (1+r)ⁿ / ((1+r)ⁿ - 1), where P is the principal, r is the monthly rate (annual rate ÷ 12), and n is the number of months. For example, borrowing ¥1,000,000 at 3% annual rate for 60 months gives a monthly rate of 0.25% and EMI of approximately ¥17,966.

Amortization Schedule

In the early stages of loan repayment, a larger portion goes to interest and less to principal. As repayment progresses, the principal portion gradually increases. This is called amortization. An amortization table shows the principal payment, interest, and remaining balance for each month.

Effect of Prepayment

Prepayment (paying part or all of the loan earlier than scheduled) significantly reduces total interest paid. Even paying a little extra toward principal each month has a large interest-saving effect. However, some loans have prepayment fees, so always check.

EMI by Interest Rate (¥1M, 60 months)

Rate 1%¥17,090/mo
Total: ¥1,025,400Interest: ¥25,400
Rate 2%¥17,528/mo
Total: ¥1,051,680Interest: ¥51,680
Rate 3%¥17,966/mo
Total: ¥1,077,960Interest: ¥77,960
Rate 5%¥18,871/mo
Total: ¥1,132,260Interest: ¥132,260
Rate 10%¥21,247/mo
Total: ¥1,274,820Interest: ¥274,820
Rate 15%¥23,790/mo
Total: ¥1,427,400Interest: ¥427,400

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