EMI Calculator
An Equated Monthly Instalment (EMI) is the fixed amount you repay your lender every month until a loan is cleared. Whether you are planning a home, car, or personal loan, knowing the EMI in advance tells you whether the monthly outgo fits your budget before you sign anything. This EMI calculator does the maths instantly: enter the loan amount, the annual interest rate, and the tenure, and it returns your monthly instalment along with the total interest you will pay over the life of the loan. It also shows how each EMI splits between principal and interest, so you can see exactly where your money goes and compare different loan offers on equal terms.
120 months
Monthly EMI
₹12,668
Total Interest
₹5,20,109
Principal
₹10,00,000
Total Payment
₹15,20,109
| Month | Principal | Interest | Balance |
|---|---|---|---|
| 1 | ₹5,168 | ₹7,500 | ₹9,94,832 |
| 2 | ₹5,206 | ₹7,461 | ₹9,89,626 |
| 3 | ₹5,245 | ₹7,422 | ₹9,84,381 |
| 4 | ₹5,285 | ₹7,383 | ₹9,79,096 |
| 5 | ₹5,324 | ₹7,343 | ₹9,73,772 |
| 6 | ₹5,364 | ₹7,303 | ₹9,68,407 |
| 7 | ₹5,405 | ₹7,263 | ₹9,63,003 |
| 8 | ₹5,445 | ₹7,223 | ₹9,57,558 |
| 9 | ₹5,486 | ₹7,182 | ₹9,52,072 |
| 10 | ₹5,527 | ₹7,141 | ₹9,46,545 |
| 11 | ₹5,568 | ₹7,099 | ₹9,40,976 |
| 12 | ₹5,610 | ₹7,057 | ₹9,35,366 |
About the EMI Calculator
An EMI calculator is a tool that converts a loan amount, interest rate, and tenure into a single fixed monthly payment using the reducing-balance method that Indian banks and NBFCs follow. Each instalment pays off a portion of the interest first and the rest reduces your outstanding principal, which is why early EMIs are interest-heavy and later ones repay more principal.
Why it is useful
Borrowing without knowing the EMI is how people end up over-leveraged. A calculator lets you test different combinations — a shorter tenure, a larger down payment, a lower negotiated rate — and instantly see the effect on both your monthly cash flow and the total cost of the loan. It turns a confusing loan brochure into two numbers you actually care about: what you pay each month, and what the loan costs you in total.
How the calculation works
EMI is calculated with the formula EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the number of monthly instalments. Because the rate is applied to the reducing balance, the interest portion of each EMI falls over time while the principal portion rises, even though the EMI itself stays constant.
Key inputs explained
- Loan amount: The principal you borrow, after any down payment.
- Interest rate: The annual rate quoted by the lender, in per cent per annum.
- Tenure: How long you take to repay, usually expressed in years or months.
Example calculation
Inputs
- Loan amount (P)
- ₹20,00,000
- Interest rate
- 9% p.a.
- Tenure (n)
- 15 years (180 months)
Calculation breakdown
- Monthly rate (r)
- 9 ÷ 12 ÷ 100 = 0.0075
- (1 + r)^n
- (1.0075)^180 ≈ 3.838
- EMI
- 20,00,000 × 0.0075 × 3.838 ÷ (3.838 − 1)
Over 180 months you repay about ₹36.5 lakh in total, of which roughly ₹16.5 lakh is interest. Shortening the tenure to 10 years raises the EMI but slashes the interest sharply.
Benefits
- See the exact monthly commitment before you apply.
- Compare lenders and offers on a like-for-like basis.
- Understand how tenure and rate trade off against each other.
Limitations
- Assumes a fixed interest rate; floating-rate EMIs change when the benchmark moves.
- Excludes processing fees, insurance, and GST that lenders may add.
- Real EMIs can differ by a rupee or two due to lender rounding conventions.
Tips
- Keep total EMIs under about 40% of your take-home income.
- A slightly higher EMI on a shorter tenure can save lakhs in interest.
- Check whether the rate is fixed or floating before comparing offers.
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About this calculator
The EMI Calculator is built and maintained by the PaisaBot team. All calculations run instantly in your browser using established financial formulas, and we use high-precision arithmetic to keep the results reliable.
Data accuracy: Interest rates, tax slabs, and scheme rules are updated periodically, but figures can change with RBI, government, and lender revisions. Always confirm the latest rates with your bank or an official source before acting.
Educational purpose: This tool is provided for general information and financial education only. It does not constitute investment, tax, or legal advice. For decisions specific to your situation, please consult a qualified financial advisor.