Loan EMI Calculator
Enter your loan details and press Calculate. Results update instantly.
Loan Details
Monthly Payment (EMI)
Amortization Schedule
Month-by-month principal and interest breakdown.
| Month | Payment | Principal | Interest | Extra | Balance |
|---|
How is EMI Calculated?
EMI = P × r × (1 + r)n / ((1 + r)n − 1)
Where P is the loan amount, r is the periodic interest rate (adjusted for compound and payback frequency), and n is the total number of payments. Every payment covers the month's interest first, then reduces the principal. That is why the interest portion decreases each month while the principal portion grows.
EMI Calculator FAQ
On this page
What is an EMI and how does it work?
EMI stands for Equated Monthly Instalment — the fixed amount you pay your lender every month until the loan is fully repaid. Each EMI has two parts: the principal (the money you borrowed) and the interest (the lender's fee). Early in the loan, most of your EMI goes toward interest; as the loan matures, the principal share grows. This calculator uses the standard amortization formula to give you the exact EMI, total interest and a complete month-by-month repayment schedule.
The EMI formula explained
EMI = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1), where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the total number of monthly payments (tenure in years × 12).
For example, a $20,00,000 loan at 8.5% for 20 years gives r = 0.7083% and n = 240. Plugging into the formula produces an EMI of about $17,350.
Banks add processing fees and GST on top, so your effective cost is slightly higher than the pure EMI shown here.
Why the interest component is highest at the start
Interest is charged on the outstanding balance, which is largest at the beginning. In month 1 of the example above, interest is about $14,167 and principal only $3,183.
By year 15 the balance has shrunk so much that the principal share of each EMI exceeds the interest share. This is called an amortizing loan.
Because interest is front-loaded, paying extra in the early years reduces total interest dramatically — completing a few extra payments in year 1 can save years of payments later.
How banks calculate your eligibility
Most lenders use the FOIR (Fixed Obligation to Income Ratio) method: your total EMIs, including this new loan, should stay below 40–50% of your net monthly income.
Some use the multiplier approach — loan amount = annual income × 3 to 4.5, depending on your age and the lender.
Your credit score (CIBIL) heavily influences both approval and the interest rate offered. A score above 750 usually secures the best rates.
How to use this calculator
- Enter the loan amount you wish to borrow in the first field.
- Type the annual interest rate offered by your lender (for example 8.5).
- Choose the loan tenure in years.
- The EMI, total interest and amortization schedule update instantly as you type.
- Use the sliders (if visible) to explore how different tenures change your EMI.
Pro tips
- A longer tenure lowers your EMI but more than doubles total interest — always compare total cost, not just the monthly number.
- A higher credit score (750+) typically gets you 0.25–0.50% lower interest, saving tens of thousands over the life of the loan.
- Making one extra EMI per year can reduce a 20-year loan by roughly 3–4 years.
Advantages & considerations
✅ Advantages
- Instant, accurate EMI with no sign-up
- Full amortization schedule included
- Compare rates by tweaking inputs live
⚠️ Considerations
- Does not include processing fees or GST automatically
- Actual bank rates vary by credit profile