EMI (Equated Monthly Instalment) is the fixed monthly payment you make to repay a loan. Each EMI consists of a principal component and an interest component, calculated using the reducing-balance method.

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 tenure in months.

Does a longer tenure reduce EMI?

Yes, a longer tenure reduces your monthly EMI but significantly increases total interest paid. Always choose the shortest tenure you can comfortably afford.

How does prepayment help?

Annual prepayment reduces the outstanding principal, which lowers interest for all future months. This can save significant interest and close the loan years earlier.

What is an amortization schedule?

An amortization schedule shows the breakdown of each monthly payment — how much goes toward principal, how much toward interest, and what the remaining balance is after each payment.

Does the calculator support USD, EUR, and GBP?

Yes. Select ₹, $, €, or £ from the currency selector. The formula and calculations are identical regardless of currency.

What is the difference between fixed and floating interest rates?

A fixed rate stays constant for the loan term. A floating (variable) rate changes with market rates (MCLR/repo rate in India). This calculator assumes a fixed rate throughout the tenure.

Loan EMI Calculator

Calculate monthly EMI, total interest, and full amortization schedule

Currency

Loan Amount (₹)

10K5Cr

Interest Rate (% p.a.)

1%30%

Loan Tenure

Yearly Prepayment (₹) optional

Monthly EMI

₹17,356

Total Interest

₹21,65,552

52% of total

Total Payment

₹41,65,552

240 months

Payment Breakdown

Principal 48%

Interest 52%

Amortization Schedule

Month	EMI	Principal	Interest	Balance
1	₹17,356	₹3,190	₹14,167	₹19,96,810
2	₹17,356	₹3,212	₹14,144	₹19,93,598
3	₹17,356	₹3,235	₹14,121	₹19,90,363
4	₹17,356	₹3,258	₹14,098	₹19,87,105
5	₹17,356	₹3,281	₹14,075	₹19,83,823
6	₹17,356	₹3,304	₹14,052	₹19,80,519
7	₹17,356	₹3,328	₹14,029	₹19,77,191
8	₹17,356	₹3,351	₹14,005	₹19,73,840
9	₹17,356	₹3,375	₹13,981	₹19,70,465
10	₹17,356	₹3,399	₹13,957	₹19,67,066
11	₹17,356	₹3,423	₹13,933	₹19,63,643
12	₹17,356	₹3,447	₹13,909	₹19,60,195
⋯ 216 months hidden ⋯
229	₹17,356	₹15,947	₹1,410	₹1,83,050
230	₹17,356	₹16,060	₹1,297	₹1,66,990
231	₹17,356	₹16,174	₹1,183	₹1,50,816
232	₹17,356	₹16,288	₹1,068	₹1,34,528
233	₹17,356	₹16,404	₹953	₹1,18,125
234	₹17,356	₹16,520	₹837	₹1,01,605
235	₹17,356	₹16,637	₹720	₹84,968
236	₹17,356	₹16,755	₹602	₹68,214
237	₹17,356	₹16,873	₹483	₹51,340
238	₹17,356	₹16,993	₹364	₹34,348
239	₹17,356	₹17,113	₹243	₹17,234
240	₹17,356	₹17,234	₹122	₹0

Free Loan EMI Calculator — Calculate EMI for Home, Car, and Personal Loans

Planning a loan is one of the most important financial decisions you will make. Whether you are buying a home, financing a car, taking a personal loan, or funding your education, understanding your monthly EMI (Equated Monthly Instalment) before you commit is essential. This free Loan EMI Calculator shows you exactly how much you will pay each month, how much total interest you will pay over the loan term, and the complete month-by-month or year-by-year repayment breakdown.

EMI is calculated using the standard reducing-balance (flat-rate diminishing) formula. Each month, a portion of your EMI goes toward repaying the outstanding principal, and the rest covers the interest for that month. In the early months of a loan, most of the EMI goes toward interest. As the loan progresses, the outstanding balance reduces, so the interest component falls and the principal component rises. This is called amortization.

Use the quick-select buttons at the top to instantly load typical values for a Home Loan (₹50 lakh at 8.5% for 20 years), Car Loan (₹8 lakh at 9.5% for 7 years), Personal Loan (₹5 lakh at 13% for 5 years), or Education Loan (₹15 lakh at 10.5% for 10 years). Adjust any value with the sliders or type directly to get a customised calculation for your exact loan.

EMI Formula — How Is Your Monthly Payment Calculated?

The standard EMI formula used by all banks and financial institutions is:

EMI = P × R × (1 + R)^N / [(1 + R)^N − 1]

Principal

The original loan amount you are borrowing.

Monthly Interest Rate

Annual interest rate divided by 12. For 8.5% p.a., R = 8.5 ÷ 12 ÷ 100 = 0.007083.

Number of Months

Total loan tenure in months. 20 years = 240 months.

How Prepayment Reduces Your Interest

Making an annual prepayment toward your loan principal can dramatically reduce the total interest you pay and shorten your loan tenure. Prepayment works because every rupee you pay toward the principal directly reduces the outstanding balance — which lowers the interest charged for all future months.

For example, on a ₹50 lakh home loan at 8.5% for 20 years, the total interest without prepayment is roughly ₹56 lakh. An annual prepayment of just ₹50,000 per year can save over ₹8 lakh in interest and close the loan 3 years early. Use the Yearly Prepayment field to see your personalised savings.

Reduces outstanding balance

Every prepayment directly reduces the principal. Lower principal means lower interest charged each month.

Shortens loan tenure

With the regular EMI unchanged, the loan closes earlier because the outstanding balance reaches zero faster.

No impact on credit score

Most banks allow partial prepayment without penalty on floating-rate loans. Check your loan agreement for prepayment charges.

Frequently Asked Questions

What is an EMI?+

EMI stands for Equated Monthly Instalment. It is the fixed monthly amount you pay to the bank or lender to repay your loan. Each EMI consists of a principal component (reducing the loan balance) and an interest component (the cost of borrowing).

Why does the interest component decrease over time?+

The interest you pay each month is calculated on the outstanding loan balance. As you repay principal each month, the outstanding balance reduces, so the interest charged for the next month is lower. This is the reducing-balance method used for housing, car, and personal loans in India.

What happens if I miss an EMI?+

Missing an EMI typically results in a late payment fee, a penalty interest charge, and a negative mark on your credit score (CIBIL score in India). Multiple missed EMIs can lead to loan default, asset seizure (for secured loans), or legal action. Contact your lender immediately if you cannot pay an EMI.

Is the interest rate fixed or floating?+

Home loans commonly offer both options. A fixed interest rate stays the same for the entire loan tenure. A floating (variable) rate changes with market rates (linked to MCLR or repo rate). Floating rates can go up or down, affecting your EMI or tenure. This calculator assumes a fixed rate throughout.

What is the difference between processing fee and interest?+

Processing fee is a one-time charge levied by the lender when you take the loan — typically 0.5–2% of the loan amount. Interest is the ongoing monthly cost of the loan, calculated on the outstanding balance. The EMI does not include the processing fee.

How does a longer tenure affect my EMI and total interest?+

A longer tenure reduces your monthly EMI (more manageable payments) but dramatically increases total interest paid over the life of the loan. Always aim for the shortest tenure you can comfortably afford.

Can I get a lower interest rate by negotiating?+

Yes. Your credit score, existing relationship with the bank, and competitive offers from other lenders can all be used to negotiate a lower interest rate. Even a 0.5% reduction can save lakhs of rupees over a long home loan tenure.

Is this EMI calculator accurate?+

Yes. This calculator uses the standard reducing-balance EMI formula used by all banks and NBFCs. Results may differ slightly from your actual loan statement due to rounding, processing dates, and whether your lender rounds EMI up or down.