How is EMI calculated?

EMI is calculated using the formula: 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.

Does the EMI stay the same throughout the loan?

Yes, for fixed-rate loans the EMI amount stays constant. What changes each month is the proportion going toward principal vs. interest — early EMIs are mostly interest; later EMIs are mostly principal.

What is the total interest on a 20-lakh home loan at 8.5% for 20 years?

At 8.5% for 240 months on ₹20 lakh, the monthly EMI is approximately ₹17,356, and total interest paid over 20 years is around ₹21.65 lakh — more than the original principal.

Does prepayment reduce the EMI or the tenure?

Most Indian banks apply prepayment to reduce tenure while keeping EMI constant, which reduces total interest significantly. Some lenders offer the choice — check your loan agreement.

Can I use this for personal and car loans?

Yes. Enter any loan amount, rate, and tenure regardless of loan type. The formula applies to all standard installment-based loans.

Loan EMI Calculator – Monthly Payment, Total Interest & Amortization Schedule

Estimate your monthly loan payment accurately before you borrow. Enter the loan amount, annual interest rate, and tenure to see EMI, total interest payable, total repayment amount, and a complete month-by-month amortization schedule.

Loan Details

Loan Amount (Rs)

Interest Rate (% p.a.)

Loan Tenure

Monthly EMI

Rs8,678.23

Total Interest

Rs10,82,775.76

Total Payment

Rs20,82,775.76

Payment Breakdown

48%

52%

Principal:Rs10,00,000

Interest:Rs10,82,775.76

Amortization Schedule

240 months

#	Principal	Interest	Balance
1	Rs1,594.9	Rs7,083.33	Rs9,98,405.1
2	Rs1,606.2	Rs7,072.04	Rs9,96,798.9
3	Rs1,617.57	Rs7,060.66	Rs9,95,181.33
4	Rs1,629.03	Rs7,049.2	Rs9,93,552.3
5	Rs1,640.57	Rs7,037.66	Rs9,91,911.73
6	Rs1,652.19	Rs7,026.04	Rs9,90,259.54
7	Rs1,663.89	Rs7,014.34	Rs9,88,595.65
8	Rs1,675.68	Rs7,002.55	Rs9,86,919.97
9	Rs1,687.55	Rs6,990.68	Rs9,85,232.42
10	Rs1,699.5	Rs6,978.73	Rs9,83,532.91
11	Rs1,711.54	Rs6,966.69	Rs9,81,821.37
12	Rs1,723.66	Rs6,954.57	Rs9,80,097.71

EMI Formula

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

P = Principal · R = Monthly Rate (annual / 12 / 100) · N = Total Months

When to Use an EMI Calculator

Before taking a home loan

Calculate your monthly EMI and total interest before signing a home loan to understand the full repayment burden over the tenure.

Comparing loan offers

Run the calculator for each offer with different interest rates and tenures to find which combination keeps total interest lowest.

Planning prepayment

Use the amortization schedule to see how much principal remains at any point, helping you decide when prepayment reduces interest most.

How to Calculate Loan EMI

Enter loan amount

Provide the principal amount you want to borrow.

Add interest and tenure

Enter the annual interest rate and loan duration in months or years.

Calculate EMI

See your monthly EMI, total interest, and total repayment instantly.

Review amortization

Check the month-by-month schedule to see how principal and interest split over time.

How Interest Rate and Tenure Affect Your EMI

Two variables have the largest impact on your monthly EMI: the interest rate and the loan tenure. A higher interest rate directly increases both the EMI and the total interest paid. For a ₹30 lakh home loan at 7% for 20 years, the EMI is approximately ₹23,259 and total interest is ₹25.8 lakh. At 9%, the EMI jumps to ₹26,992 and total interest reaches ₹34.8 lakh — ₹9 lakh more for a 2-percentage- point difference. Tenure has the opposite trade-off: a longer tenure reduces the monthly EMI but dramatically increases total interest. Extending the same ₹30 lakh loan from 15 to 25 years at 8% drops the monthly EMI by about ₹4,000 but adds nearly ₹15 lakh in total interest. Use the calculator to run both scenarios before deciding on tenure.

Reading the Amortization Schedule

The amortization schedule shows how each monthly EMI is split between principal repayment and interest payment throughout the loan tenure. In the early months, a large portion of each EMI goes toward interest and a small portion reduces the principal. As the loan matures, this flips — more of each payment reduces the outstanding principal and less goes to interest. This is called front-loading of interest, and it is why prepaying a loan in the first few years saves significantly more interest than prepaying in the last few years. The schedule here lets you scroll to any month to see the exact breakdown, helping you identify the best window for a lump-sum prepayment if you receive a bonus, inheritance, or other windfall.

Frequently Asked Questions

How is EMI calculated?: EMI is calculated using the formula: 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.
Does the EMI stay the same throughout the loan?: Yes, for fixed-rate loans the EMI amount stays constant. What changes each month is the proportion going toward principal vs. interest — early EMIs are mostly interest; later EMIs are mostly principal.
What is the total interest on a 20-lakh home loan at 8.5% for 20 years?: At 8.5% for 240 months on ₹20 lakh, the monthly EMI is approximately ₹17,356, and total interest paid over 20 years is around ₹21.65 lakh — more than the original principal.
Does prepayment reduce the EMI or the tenure?: Most Indian banks apply prepayment to reduce tenure while keeping EMI constant, which reduces total interest significantly. Some lenders offer the choice — check your loan agreement.
Can I use this for personal and car loans?: Yes. Enter any loan amount, rate, and tenure regardless of loan type. The formula applies to all standard installment-based loans.

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