Loan EMI Calculator
An EMI — equated monthly instalment — is what a lender quotes when you ask what a loan will cost each month. This tool is built for the moment you are comparing two sanction letters and need to see the instalment, the interest share and the amortisation split side by side.
Inputs
Result
5,189.59 / month
Total repayment 311,375.33 · Interest 61,375.33
Visual breakdown
How it works
EMI = P·r·(1+r)^n / ((1+r)^n − 1)
- 1Monthly rate = 0.75%
- 2Months = 60
- 3EMI = 5,189.59
How the loan emi calculator works
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1). The word 'equated' matters: the payment is constant, but its composition is not.
Interest for any month = outstanding balance × r. Principal for that month = EMI − interest. Subtract that principal, and the next month's interest is smaller.
That is why the interest share falls slowly at first. On a 20-year loan, the halfway point of the balance arrives years after the halfway point of the calendar.
Worked example: first three months of a 1,000,000 loan at 9% over 15 years
- r = 9 ÷ 1,200 = 0.0075, n = 180. EMI ≈ 10,143.
- Month 1: interest = 1,000,000 × 0.0075 = 7,500; principal = 2,643; balance = 997,357.
- Month 2: interest = 7,480; principal = 2,663; balance = 994,694.
- Month 3: interest = 7,460; principal = 2,683; balance = 992,011.
- After a full year, only about 33,000 of the principal is gone while roughly 89,700 has gone to interest.
Common mistakes to avoid
Using the annual rate directly
The formula needs a monthly rate. Entering 9 instead of 0.0075 produces a nonsense instalment several times larger than reality.
Assuming a floating EMI stays fixed
On floating-rate loans, lenders usually hold the EMI and extend the tenure when rates rise. Your payment looks stable while the loan silently gets longer.
Mixing moratorium periods into the schedule
Interest accrues during a payment holiday and is capitalised. The post-moratorium EMI is calculated on a larger balance than you originally borrowed.
Frequently asked questions
Is EMI the same as a monthly instalment on any loan?
Functionally yes — EMI is the term used in South Asian and Middle Eastern lending for the level payment that Western lenders simply call the monthly payment.
How can I reduce my EMI without refinancing?
Make a part-prepayment and ask the lender to recalculate the instalment rather than shorten the tenure. Many default to keeping the EMI unchanged unless you specify.
What is an EMI moratorium?
A deferral of payments, not a waiver. Interest keeps accruing on the outstanding balance and is added to the principal.
Why does my bank's EMI differ slightly from this result?
Lenders round to the rupee or cent, may charge interest on a daily basis, and sometimes collect a broken-period interest amount for the days between disbursal and the first due date.
Does a pre-EMI option save money?
No. Paying only interest until full disbursal keeps the principal untouched, so the total cost rises even though early payments feel lighter.
Learn more
EMI vs Total Interest: The Number Lenders Don't Advertise
Why two loans with the same instalment can differ by hundreds of thousands in interest, and how to read an amortisation schedule properly.
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