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EMI calculator
Work out the monthly instalment (EMI) on a loan, how much of it is interest, and how the balance falls each year.
Result
- Monthly EMI
- …
- Loan amount
- …
- Total interest
- …
- Total repaid
- …
PrincipalInterest
An estimate for planning, not financial or tax advice. Figures are rounded.
Year-by-year breakdown
| Year | Principal paid | Interest paid | Balance |
|---|
How it works
Banks in India use the reducing-balance method: each month's interest is charged only on the amount still owed.
EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1)
Here P is the loan amount, r the monthly interest rate (annual rate ÷ 12 ÷ 100) and n the number of monthly instalments. Example: ₹10 lakh at 9% for 20 years is an EMI of about ₹8,997; over 240 months you repay about ₹21.6 lakh, of which about ₹11.6 lakh is interest.
Questions readers ask
How is EMI calculated?
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r the monthly rate (annual rate ÷ 12 ÷ 100) and n the number of months. Interest is charged on the outstanding balance, so early EMIs are mostly interest and later ones mostly principal.
Does a longer tenure reduce the total cost of a loan?
No. A longer tenure lowers each EMI but increases the total interest paid, because the balance stays outstanding for longer.
Do prepayments reduce interest?
Yes. A part-prepayment reduces the outstanding principal, so less interest accrues afterwards. Check your lender's prepayment terms; floating-rate home loans to individuals usually carry no prepayment charge.