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EMI Calculator

Work out the fixed monthly payment on a home, car or personal loan, how much of it goes to interest, and how your balance falls year by year.

About the EMI Calculator

An EMI (equated monthly instalment) is the fixed amount you pay every month until a loan is cleared. In the US, UK and elsewhere it is simply called the monthly loan payment; the maths is the same.

Each payment covers that month's interest first, and the rest reduces what you owe. Early payments are mostly interest; later ones are mostly principal. The schedule below shows that shift.

The formula

EMI = P × i × (1 + i)ⁿ ÷ ((1 + i)ⁿ − 1)

P
loan amount (principal)
i
monthly interest rate (yearly rate ÷ 12 ÷ 100)
n
number of monthly payments

This applies to fixed-rate loans with interest charged on the reducing balance, the standard for home, car and personal loans.

How to read your result

  • EMI is what leaves your account every month.
  • Total interest is the cost of borrowing. Compare it across tenures: a longer loan lowers the EMI but raises the total interest.
  • The yearly schedule shows how much principal you clear each year and what you still owe.

Worked example

₹10,00,000 for 20 years at 8.5%

  1. Monthly rate = 8.5 ÷ 12 ÷ 100 = 0.007083
  2. n = 240 months
  3. EMI ≈ ₹8,678, and total interest ≈ ₹10,82,776

Things to keep in mind

  • Processing fees, insurance and taxes are not included.
  • Floating-rate loans change when the lender's rate changes.
  • Prepayments shorten the loan or reduce the EMI. Use a prepayment calculator to see the effect.

Questions people ask

How can I reduce my EMI?

Borrow less, find a lower rate, or choose a longer tenure. A longer tenure lowers the monthly payment but increases the total interest you pay.

Why is so much of my early EMI interest?

Interest is charged on what you still owe. At the start the balance is highest, so the interest part is largest.

Is this the same as a mortgage payment?

It is the principal-and-interest part of it. A mortgage payment may also include property tax and insurance, which vary by country and lender.

Sources