One extra EMI a year saves ₹20,057
Prepaying ₹21,000 each year ends the loan 5 months early.
EMI Calculator
Work out the monthly EMI, total interest and payout for a loan.
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EMI Calculator
Work out the monthly EMI, total interest and payout for a loan.
10 lakh · type 5k, 1.5L or 2cr
% p.a.
years
type 5k, 1.5L or 2cr
Paid off the principal at the end of every 12th month; the EMI stays the same, so the loan ends sooner.
Monthly EMI₹20,758
Your EMI is ₹20,758 a month for 60 months. You repay ₹12,45,501, of which ₹2,45,501 is interest.
- Principal₹10,00,000
- Total interest₹2,45,501
- Total payable₹12,45,501
Interest is 25% of the loan
On ₹10,00,000 you pay ₹2,45,501 in interest over 60 months.
Where each year’s EMIs go
How the loan EMI calculator works
Equated Monthly Instalment (EMI) represents the fixed payment you make each month to pay off a reducing-balance loan (such as a home loan or car loan). Each payment is split into principal repayment and interest cost, with the interest calculated on the outstanding balance.
How to Use: 1. Enter the total "Loan amount" you wish to borrow. 2. Set the lender's annual "Interest rate". 3. Adjust the "Loan tenure" in years to change the repayment window.
Understanding the Results: The calculator determines your fixed "Monthly EMI" payment. Below, it highlights the total loan principal versus the "Total interest" cost. The donut chart visualizes how much of your total payment goes to interest versus paying down the principal.
The formula
EMI = P × i × (1 + i)^n ÷ ((1 + i)^n − 1)
- P: the loan amount
- i: the monthly interest rate: annual rate ÷ 12
- n: the number of monthly instalments
This is a reducing-balance loan: interest each month is charged only on what is still owed.
A worked example
A loan of ₹10,00,000 at 9% for 5 years costs about ₹20,758 a month. Over the tenure you repay ₹12,45,501, of which ₹2,45,501 is interest.
Questions people ask
How is a loan EMI calculated?
EMI = P × i × (1 + i)^n ÷ ((1 + i)^n − 1), where P is the loan amount, i is the monthly interest rate (the annual rate divided by 12) and n is the number of monthly instalments.
Why is most of my early EMI interest?
Interest is charged on the outstanding balance. At the start the balance is at its highest, so most of each EMI goes to interest; as you repay, the principal share of every EMI grows.
Does prepaying a loan reduce the interest?
Usually, yes. A prepayment cuts the outstanding balance, so every later month’s interest is charged on less. Lenders differ on prepayment charges and on whether they reduce the EMI or the tenure, so check your loan terms.
Does the EMI include processing fees or insurance?
No. The calculator covers principal and interest only. Add any fees separately when you compare loans.
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Further reading
Estimates are for illustration only and assume constant returns. Actual returns vary with market conditions. This is not investment advice.