What it calculates
An EMI (equated monthly instalment) is the fixed amount you pay a lender every month until a loan is repaid. Each EMI covers that month’s interest and repays part of the principal.
Early in a loan most of the EMI goes towards interest; towards the end most of it repays principal. The amortisation schedule shows this month by month.
How it works
The EMI is worked out with the standard reducing-balance formula. The calculator then runs the schedule: each month, interest is charged on the outstanding balance and the rest of the EMI reduces the balance. The final instalment is adjusted so the loan closes at exactly zero.
Formula
- P = loan amount
- r = monthly interest rate (annual rate ÷ 12 ÷ 100)
- N = number of monthly instalments
- At 0% interest, EMI = P ÷ N
How to use it
- Enter the loan amount.
- Enter the annual interest rate offered by the lender.
- Enter the tenure and choose years or months.
- Read the EMI and total interest; open the schedule to see each month.
- Use Print or Share to keep a copy.
For the default loan of ₹50 lakh at 8.5% for 20 years:
Why it helps
- Shows the full interest cost, not just the monthly figure.
- Helps compare tenures: a longer tenure lowers the EMI but raises total interest.
- Annual summary is useful for planning and for tax records where interest is deductible.
Limitations
- Assumes a fixed rate for the whole tenure; floating-rate loans change with the benchmark.
- Processing fees, insurance, prepayment charges and part-prepayments are not included.
- Lenders may round or date instalments slightly differently.
Frequently asked questions
Should I choose a shorter or longer tenure?
A shorter tenure means a higher EMI but much less total interest. Choose the shortest tenure whose EMI you can pay comfortably alongside your other commitments.
How does a prepayment help?
A prepayment reduces the outstanding principal, so future interest is charged on a smaller balance. Check your lender’s prepayment terms and charges.
Is the EMI the same every month?
For a fixed-rate loan, yes, apart from a small adjustment to the last instalment. For a floating-rate loan the lender may change the EMI or the tenure when rates move.