EMI Calculator
Work out your monthly instalment, the total interest you'll pay, and how the balance falls year by year.
Monthly EMI
₹21,696
Interest is 52.0% of everything you repay.
Year-by-year breakdown
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | ₹49,756 | ₹2,10,591 | ₹24,50,244 |
| 2 | ₹54,154 | ₹2,06,193 | ₹23,96,091 |
| 3 | ₹58,940 | ₹2,01,407 | ₹23,37,150 |
| 4 | ₹64,150 | ₹1,96,197 | ₹22,73,000 |
| 5 | ₹69,820 | ₹1,90,527 | ₹22,03,180 |
| 6 | ₹75,992 | ₹1,84,355 | ₹21,27,188 |
| 7 | ₹82,709 | ₹1,77,638 | ₹20,44,479 |
| 8 | ₹90,020 | ₹1,70,327 | ₹19,54,459 |
| 9 | ₹97,977 | ₹1,62,370 | ₹18,56,482 |
| 10 | ₹1,06,637 | ₹1,53,710 | ₹17,49,846 |
| 11 | ₹1,16,063 | ₹1,44,284 | ₹16,33,783 |
| 12 | ₹1,26,321 | ₹1,34,026 | ₹15,07,462 |
| 13 | ₹1,37,487 | ₹1,22,860 | ₹13,69,974 |
| 14 | ₹1,49,640 | ₹1,10,707 | ₹12,20,335 |
| 15 | ₹1,62,866 | ₹97,480 | ₹10,57,468 |
| 16 | ₹1,77,262 | ₹83,085 | ₹8,80,206 |
| 17 | ₹1,92,931 | ₹67,416 | ₹6,87,275 |
| 18 | ₹2,09,984 | ₹50,363 | ₹4,77,291 |
| 19 | ₹2,28,545 | ₹31,802 | ₹2,48,746 |
| 20 | ₹2,48,746 | ₹11,601 | ₹0 |
How to Use
- 1. Enter the loan amount you want to borrow.
- 2. Enter the annual interest rate offered by your lender.
- 3. Set the tenure in years — use the slider for quick comparisons.
- 4. Read your monthly EMI, total interest, and year-by-year breakdown instantly.
How EMI Is Calculated
Lenders use the reducing-balance 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 instalments.
The instalment itself never changes, but its composition does. In the first year most of each payment covers interest on a large outstanding balance; by the final year almost all of it goes to principal. The table above makes that shift visible, which is usually more useful than the headline EMI on its own.
Because interest accrues on the balance, tenure matters more than most borrowers expect — extending a loan lowers the monthly figure but can add a very large amount to total interest.
For related numbers, try our Compound Interest Calculator or the GST Calculator.
Frequently Asked Questions
What is an EMI?
An Equated Monthly Instalment is the fixed amount you pay each month until a loan is repaid. Every instalment covers the interest accrued that month first, and whatever remains reduces the outstanding principal.
Why does so much of an early EMI go to interest?
Interest is charged on the outstanding balance, which is at its highest at the start. As the balance falls, the interest portion shrinks and the principal portion grows — which is why the year-by-year breakdown flips over the life of the loan.
Does a shorter tenure really save money?
Yes. A shorter tenure raises the monthly instalment but sharply reduces total interest, because the balance is outstanding for fewer months. Try changing the tenure and watch the total interest figure.
Is this accurate for home and car loans?
The formula is the standard reducing-balance method used by banks for home, car, and personal loans. Your lender may add processing fees, insurance, or a different compounding convention, so treat this as a close estimate rather than a quote.
Is my data sent anywhere?
No. Every figure is calculated in your browser. The figures you enter are not uploaded or stored.
Was this tool helpful?
Guide
How to work out a loan EMI and see where your repayments go
An EMI, or equated monthly instalment, is the fixed amount you pay a lender every month until a loan is cleared. This calculator takes a loan amount, an annual interest rate and a tenure in years, and gives you the monthly EMI, the total interest over the life of the loan, the total you will repay, and a year-by-year table showing how much of each year's payments went to principal, how much to interest, and what balance was left.
The table is the most useful part. The EMI itself never changes, but its make-up does: early payments are mostly interest because the balance is large, and late payments are mostly principal. Seeing that shift makes it easier to judge decisions such as a shorter tenure or a part-prepayment. The maths is the standard reducing-balance method, so the result is a close estimate for home, car and personal loans, though your lender's sanction letter is the figure that counts. This page is for information only and is not financial advice.
Step by step
- Choose a currency from the dropdown. It defaults to INR and also offers USD, EUR, GBP and AED. This changes the symbol and digit grouping only.
- Type the amount you plan to borrow into Loan amount. The starting value is 25,00,000.
- Drag the Interest rate slider. It runs from 1% to 24% a year in steps of 0.1, and the current value is shown beside the label.
- Drag the Tenure slider, which runs from 1 to 30 years in whole-year steps. The label also shows the equivalent number of months.
- Read Monthly EMI, then Principal, Total interest and Total payable. The bar underneath states what percentage of everything you repay is interest.
- Scroll to the Year-by-year breakdown to see principal paid, interest paid and closing balance for each year.
When this is useful
- Checking whether a home loan EMI fits your monthly budget before you visit a bank.
- Comparing a 15-year and a 20-year tenure on the same loan to see the true cost of the lower instalment.
- Testing how much a 0.5 percentage point difference in interest rate changes the total repayment.
- Estimating an EMI for a car or two-wheeler loan while negotiating with a dealer.
- Seeing roughly how much principal you will still owe after five or ten years, for example if you plan to sell or refinance.
Worked example: A 25 lakh loan at 8.5%
With the starting values (25,00,000 at 8.5% for 20 years, 240 months) the tool shows an EMI of 21,696. Total payable is 52,06,939, so total interest is 27,06,939, which is 52.0% of everything repaid. In year 1 about 49,756 goes to principal and 2,10,591 to interest, leaving a balance of 24,50,244. In year 20 the split has flipped: roughly 2,48,746 of principal and only 11,601 of interest. Dragging tenure down to 15 years lifts the EMI to about 24,618, around 2,900 more per month, but cuts total interest to about 19,31,328, saving close to 7.76 lakh.
Tips for better results
- Run the same loan at two or three tenures and compare Total interest, not just the EMI.
- Add a small cushion to the rate when your loan is floating. EMIs on floating-rate loans can change when the lender's benchmark moves.
- Use the closing balance column to judge when a prepayment would matter most. Early prepayments cut far more interest than late ones.
- The rate slider moves in 0.1 steps, so a rate like 8.65% has to be approximated as 8.6% or 8.7%.
Common mistakes
- Entering the rate as monthly. The field expects the yearly rate; the tool divides by 12 itself.
- Comparing loans by EMI alone. A lower EMI from a longer tenure can cost lakhs more in interest, which the Total interest figure makes visible.
- Forgetting costs outside the formula. Processing fees, insurance and GST on fees are not included, so your real outflow can be higher.
- Treating a flat-rate quote as a reducing-balance rate. Some personal-loan and vehicle offers quote a flat rate, which is much more expensive than the same number on a reducing balance. Ask for the effective annual rate.
- Expecting part-payments or rate changes to be modelled. This tool assumes one rate and one EMI for the whole tenure.
Your files and privacy
All calculations happen in your browser and the loan details you enter are neither uploaded nor stored. Opening the page does record an anonymous usage event (tool name and a random session identifier) for site statistics, which does not include the amounts you type.
Frequently asked questions
What formula does the calculator use?
EMI equals P x r x (1 + r)^n divided by ((1 + r)^n - 1), where P is the loan amount, r is the monthly rate (annual rate divided by 12 and by 100) and n is the number of months. If the rate were zero, the tool simply divides the principal by the months.
Why does the interest column shrink over time?
Interest each month is charged on the outstanding balance. As principal is repaid the balance falls, so the same fixed EMI carries less interest and more principal each month. The year-by-year table makes this visible.
Will my bank's EMI match this exactly?
It should be very close for a fixed-rate reducing-balance loan. Differences can come from the number of days in the first period, rounding, fees, insurance, or a lender using a slightly different compounding convention. Always rely on the lender's schedule for the final numbers.
Can I enter a tenure in months?
The slider works in whole years from 1 to 30. For a loan of, say, 18 months you would need to approximate with 1 or 2 years, so treat the result as indicative.
Does a shorter tenure always make sense?
It lowers total interest, but it raises the monthly outgo, which may strain your budget or emergency savings. The best tenure is the shortest one you can pay comfortably without stretching other commitments. This is general information, not personal financial advice.
Does it work for loans in other currencies?
Yes. The maths does not depend on the currency, so you can switch to USD, EUR, GBP or AED. Only the symbol and number formatting change.
Guide reviewed 2026-10-11 by the useToolify team.
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