How the EMI Calculator Works
This EMI calculator uses the standard reducing-balance amortization method, where each monthly instalment is split between interest (calculated on the outstanding balance) and principal repayment.
Enter your loan amount, the annual interest rate charged by your lender, and the loan tenure in years. The calculator instantly computes your fixed monthly EMI.
As the loan progresses, a larger portion of each EMI goes towards principal and a smaller portion towards interest — the year-wise breakdown table shows exactly how this shifts over the loan tenure.
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 Amount₹10,00,000
- Interest Rate10% p.a.
- Tenure5 years
- ResultMonthly EMI ≈ ₹21,247 (Total Interest: ₹2.75 Lakh)
Important Assumptions
- Interest is assumed to be calculated on a reducing monthly balance, which is the standard method used by Indian banks and NBFCs.
- The interest rate is assumed to remain fixed for the entire tenure — actual floating-rate loans can change over time based on the lender's benchmark rate.
- This calculator does not include processing fees, prepayment charges, insurance premiums, or other loan-related costs.