How the EMI Calculator Works
This calculator uses the standard reducing-balance amortization method, where each monthly instalment splits between interest (on the outstanding balance) and principal repayment.
Enter your loan amount, the annual interest rate, and the loan tenure in years. You'll instantly get your fixed monthly EMI.
As the loan progresses, more of each EMI goes toward principal and less toward interest — the year-by-year breakdown table shows exactly how this shifts over time.
Benefits of Using an EMI Calculator
- Instant, accurate results: get your exact monthly instalment in seconds instead of manually working through the amortization formula or waiting on a bank executive.
- Compare loan offers easily: quickly check how EMI changes across different lenders, interest rates or tenures before you commit to one.
- Plan your budget: knowing your EMI upfront helps you check it against your monthly income and existing expenses before you apply for the loan.
- See the full cost of borrowing: the total interest payable is often overlooked — this calculator shows it clearly alongside the EMI.
- Tenure vs EMI trade-off: experiment with shorter and longer tenures to see how a lower EMI vs a shorter loan life will affect your total interest outgo.
Formula Used
EMI is calculated using the standard reducing-balance loan formula:
EMI = P × r × (1+r)^n / ((1+r)^n − 1)- PLoan principal amount
- rMonthly interest rate (annual rate ÷ 12 ÷ 100)
- nTotal number of monthly instalments
Example Calculation
Suppose you take a loan for 5 years at a 10% annual interest rate.
- Loan Amount1,000,000
- Interest Rate10% p.a.
- Tenure5 years
- Monthly EMI ≈ 21,247 (Total Interest: ≈ 275,000)
Important Assumptions
- Interest is calculated on a reducing monthly balance, which is the standard method most lenders use.
- The interest rate is assumed to stay fixed for the entire tenure — actual floating-rate loans can change over time based on the lender's benchmark rate.
- This calculator doesn't include processing fees, prepayment charges, insurance premiums, or other loan-related costs.
Frequently Asked Questions
Guides & Articles
Floating vs Fixed Home Loan Interest Rate: Which Is Better?
On a ₹50 lakh, 20-year home loan, a 9.5% fixed rate costs ₹7.72 lakh more interest than an 8.5% floating rate that never changes. Here is when fixed still wins, what a rate rise does to your EMI, and how to choose.