How the Loan Tenure Calculator Works
This is the reverse of a normal EMI calculation. Instead of fixing the tenure and solving for the EMI, you fix the EMI and solve for the tenure.
Enter the loan amount, the interest rate, and the monthly instalment you're willing or able to pay.
The calculator simulates the loan month by month: each payment covers that month's interest first, and whatever is left reduces the principal.
Your EMI has to be larger than the first month's interest, otherwise the balance grows instead of shrinking and the loan never closes. If that happens, the calculator tells you the minimum EMI needed.
Nudge the EMI up by a small amount and watch the tenure drop. Because the extra goes entirely against principal, modest increases often cut years off a long loan.
Formula Used
The number of instalments needed to clear a loan at a given EMI:
n = −ln(1 − (P × r) / EMI) / ln(1 + r)- PLoan principal amount
- rMonthly interest rate (annual rate ÷ 12 ÷ 100)
- EMIThe fixed monthly instalment you plan to pay
- nNumber of monthly instalments required
Example Calculation
Suppose you owe 10,00,000 at 10% a year and can pay 21,247 a month.
- Loan Amount1,000,000
- Interest Rate10% p.a.
- Monthly EMI21,247
- ResultTenure ≈ 60 months (5 years) · Total Interest ≈ 274,823
Important Assumptions
- Interest is calculated on a reducing monthly balance at a rate that stays fixed for the whole term.
- The EMI is assumed to be paid in full every month, on time, with no missed or partial payments.
- The final instalment is usually smaller than the rest, since it only needs to clear the remaining balance. The calculator counts it as a full month.
- Processing fees, insurance premiums, penalties and prepayment charges are not included.
- If your loan is floating-rate, a change in the benchmark will change the tenure. Many lenders adjust the tenure rather than the EMI when rates move, which is exactly the calculation shown here.