Loan EMI Calculator
Work out EMI, total interest, and principal vs interest split—same idea as leading insurer planning tools, in your browser.
Model reducing-balance EMIs the way most Indian lenders quote rates: enter principal, annual interest, and tenure to see monthly instalment, total interest, principal-vs-interest charts, and an amortisation preview—ideal when comparing home loan, car loan, or personal loan options.
Loan details
Adjust sliders or type exact values. Results update automatically.
Results
EMI formula: standard reducing balance.
- Principal — 67.2%
- Interest — 32.8%
Based on your current inputs after debounce. Mirrors the pie chart in a linear bar for quick scanning.
Amortisation schedule
First instalments—full schedule follows the same pattern.
| Month | Opening | Interest | Principal | Closing |
|---|---|---|---|---|
| 1 | ₹5,00,000 | ₹3,542 | ₹2,658 | ₹4,97,342 |
| 2 | ₹4,97,342 | ₹3,523 | ₹2,676 | ₹4,94,666 |
| 3 | ₹4,94,666 | ₹3,504 | ₹2,695 | ₹4,91,971 |
| 4 | ₹4,91,971 | ₹3,485 | ₹2,714 | ₹4,89,256 |
| 5 | ₹4,89,256 | ₹3,466 | ₹2,734 | ₹4,86,522 |
| 6 | ₹4,86,522 | ₹3,446 | ₹2,753 | ₹4,83,769 |
| 7 | ₹4,83,769 | ₹3,427 | ₹2,773 | ₹4,80,997 |
| 8 | ₹4,80,997 | ₹3,407 | ₹2,792 | ₹4,78,204 |
| 9 | ₹4,78,204 | ₹3,387 | ₹2,812 | ₹4,75,392 |
| 10 | ₹4,75,392 | ₹3,367 | ₹2,832 | ₹4,72,561 |
| 11 | ₹4,72,561 | ₹3,347 | ₹2,852 | ₹4,69,709 |
| 12 | ₹4,69,709 | ₹3,327 | ₹2,872 | ₹4,66,836 |
Showing first 12 of 120 months.
How the EMI formula works
Indian lenders usually advertise an annual percentage rate (APR) on a reducing balance. The calculator converts that to a monthly rate and applies the standard annuity formula.
Reducing balance EMI
EMI = (P × r × (1 + r)^n) / ((1 + r)^n − 1) If r = 0: EMI = P / n
- P
- Loan principal (amount borrowed) in rupees.
- r
- Monthly interest rate = annual rate ÷ 12 ÷ 100.
- n
- Loan tenure in months (years × 12 + extra months).
- EMI
- Fixed monthly payment until the loan is closed.
Each month, interest is charged on the outstanding balance. The rest of your EMI reduces principal. That is why the share of interest in each instalment falls over time—shown in the amortisation preview above.
Example: principal vs interest (illustrative)
For a typical home-loan style repayment, interest can be a large share of total outgo early in the tenure. The exact split depends on rate and tenure—your live pie chart reflects your inputs.
- Principal repaid — 42.0%
- Interest paid — 58.0%
Numbers rounded; use the calculator with your bank’s rate for a personal estimate.
Key terms (business & technical)
Quick definitions for words you will see on loan offers and credit reports.
- Principal
- The original amount borrowed. As you repay, the outstanding principal shrinks each month on a reducing balance loan.
- Reducing balance
- Interest is calculated on the remaining principal, not the initial loan amount. This is the standard method for EMIs in India.
- Annual percentage rate (APR)
- Yearly interest rate quoted by the lender. The tool divides this by 12 to get a monthly rate for the formula.
- Tenure
- Total loan duration. Longer tenure reduces EMI but often increases lifetime interest unless you prepay.
- Amortisation schedule
- Month-by-month table of opening balance, interest portion, principal portion, and closing balance after each EMI.
- Prepayment / part-prepayment
- Paying extra principal before schedule. It can shorten tenure or reduce EMI depending on bank rules—this calculator does not model prepayment automatically.
Benefits of using this EMI calculator
Whether you are comparing a home loan, car loan, or personal loan, a clear EMI picture helps negotiation and budgeting.
- Compare how rate and tenure change EMI and total interest before you commit.
- See principal vs interest visually to understand long-term cost of borrowing.
- Preview amortisation behaviour—how each payment is split early vs late in the loan.
- No account or data upload; runs locally in the browser for privacy.
- Useful when benchmarking offers from NBFCs, banks, or digital lenders.
Frequently asked questions
Short answers for common borrower questions.
What is EMI and how is it different from simple interest?▼
EMI (Equated Monthly Installment) is a fixed payment each month that pays part interest and part principal on a reducing balance loan. Simple interest is calculated on the original principal only; most bank loans use reducing balance EMI so early payments are interest-heavy.
Why does my total interest change when I change tenure?▼
A longer tenure lowers each EMI but usually increases total interest because you borrow the bank’s money for more months. A shorter tenure raises EMI but often cuts total interest paid.
Does this calculator include processing fees or insurance?▼
No. It models principal, annual rate, and tenure only. Lenders may add fees, insurance, or floating rates—always read your sanction letter and amortisation schedule from the bank.
What happens at 0% interest in the formula?▼
When the monthly rate is zero, EMI equals principal divided by number of months. Our tool uses that edge case so you can sanity-check interest-free scenarios.