EMI Calculator

An EMI, or equated monthly instalment, is the fixed amount you pay a lender every month until a loan is repaid. Each EMI covers that month's interest plus part of the principal, and the amount is set so the last instalment clears the loan exactly.

This calculator works for any amortizing loan: home, car, personal, education or a business loan. Besides the EMI, it shows the total interest you'll pay, what share of your repayments that interest makes up, and a year-by-year table of principal, interest and the balance left. Use it to compare lenders' rates, choose a tenure you can afford, or see whether paying a little extra each month is worth it.

The calculator uses the standard reducing-balance formula every bank uses: EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r the monthly interest rate (the yearly rate ÷ 12 ÷ 100) and n the number of monthly instalments.

Each month, interest is charged on the balance still owed, and the rest of the EMI reduces that balance. That's why early EMIs are mostly interest and later ones mostly principal, even though the instalment never changes. An extra payment goes straight to principal, so every later month's interest is smaller.