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EMI calculator

Written and reviewed by Omm · Last reviewed · General information, not investment advice

Work out the EMI of any loan. Enter the amount, the yearly interest rate and the tenure to see the monthly instalment, the total interest and how the balance falls each year. It also converts a flat rate to the reducing-balance rate and shows what prepaying saves.

Related: Home loan EMI calculator · Car loan EMI calculator · Personal loan EMI calculator · Home loan eligibility calculator

Between 10000 and 1000000000

Interest rate is quoted as
%

Between 0 and 40

years

Between 1 and 30

Prepayment and fees
%

Between 0 and 10

Between 0 and 10000000

Between 0 and 1000000000

Between 1 and 360

Your EMI is ₹21,247 a month. Over the loan you pay ₹2,74,823 in interest, which is 27.48% of the amount you borrow.

Monthly EMI

₹21,247

Total interest

₹2,74,823

Total you pay (loan + interest + fee)

₹12,74,823

Interest as % of the loan

27.48%

Year 1Year 5
Balance leftInterest paid so far
Year-by-year breakdown
YearPrincipal paidInterest paidBalance left
1₹1,62,268₹92,696₹8,37,732
2₹1,79,260₹75,705₹6,58,472
3₹1,98,031₹56,934₹4,60,442
4₹2,18,767₹36,198₹2,41,675
5₹2,41,675₹13,290₹0

How it works

EMI = P × i × (1 + i)ⁿ ÷ ((1 + i)ⁿ − 1) where P = loan amount, i = yearly rate ÷ 12, n = number of months

An EMI (equated monthly instalment) is the same payment every month. Each month, interest is charged on the balance you still owe; the rest of the EMI reduces the balance. Early on most of the EMI is interest, and later most of it repays the loan.

If the lender quotes a flat rate, interest is charged on the full original amount for the whole term, so the true cost is much higher than the number suggests. Choose "Flat rate" and the calculator shows the reducing-balance rate that gives the same EMI, which is the one to compare between loans.

Under "Prepayment and fees" you can add a processing fee, an extra amount paid every month, or a one-time prepayment, and see the interest and time saved. The EMI is kept the same and the loan ends sooner.

Example. A loan of ₹10,00,000 at 10% a year for 5 years has an EMI of ₹21,247. Over the 60 months you pay ₹2,74,823 in interest, ₹12,74,823 in all.

Read the guide: How an EMI works: home, car and personal loans, flat vs reducing rate.

Frequently asked questions

What is an EMI?

An equated monthly instalment: a fixed amount paid to the lender every month until the loan is repaid. Each EMI covers that month’s interest and repays a part of the loan.

How is EMI calculated?

EMI = P × i × (1 + i)ⁿ ÷ ((1 + i)ⁿ − 1), where P is the loan amount, i is the yearly interest rate divided by 12 and n is the number of months. This is the reducing-balance method used by banks in India.

What is the EMI per ₹1 lakh?

It depends on the rate and the tenure. For every ₹1,00,000 borrowed, the EMI is ₹2,076 at 9% for 5 years, ₹3,321 at 12% for 3 years, and ₹868 at 8.5% for 20 years. Multiply by the number of lakhs you borrow.

Does a longer tenure reduce the EMI?

Yes, but it raises the total interest, because you owe money for longer. Compare the "Total interest" figure for two tenures before choosing the lower EMI.

What is the difference between a flat rate and a reducing-balance rate?

A flat rate charges interest on the full original amount for the whole term, even though you repay part of it every month. A reducing-balance rate charges interest only on what you still owe. The same loan therefore shows a much lower number as a flat rate than as a reducing-balance rate, so always compare loans on the reducing-balance rate.

Which calculator should I use for a home, car or personal loan?

The maths is the same for every loan. The home loan, car loan and personal loan calculators on this site start with typical figures for each and explain the points that matter for that loan, such as prepayment on a home loan or flat rates on a car loan.

Sources

Rules, rates and definitions on this page come from these official sources. Check the current position there before you decide.

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