EMI calculator
Work out the fixed monthly instalment on a car, home or personal loan. You get the payment, the total interest, the full month-by-month schedule, and a comparison view for testing two tenures against each other.
Your loan
Option A
Option B
Monthly EMI
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Principal
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Total interest
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Total repayable
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Difference in total interest
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| Measure | Option A | Option B |
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Show the working
The standard amortising loan formula, with your figures substituted in:
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Results are rounded to the nearest unit of currency. Your lender may round differently or add processing fees, so treat this as an estimate.
Amortisation schedule
How each payment splits between interest and principal. Yearly summary shown; download the CSV for every month.
| Year | Paid | Principal | Interest | Balance |
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How to use this calculator
- Loan amount — the sum you are borrowing, after any down payment. For a car costing 30,000 with 5,000 down, enter 25,000.
- Annual interest rate — the nominal yearly rate your lender quotes. Enter 9.5 for 9.5%, not 0.095. If you were given an APR that bundles fees, the EMI here will be slightly higher than your real payment.
- Loan tenure — how long you will take to repay. Switch between years and months with the dropdown.
- Compare two — switch modes to test a shorter tenure against a longer one, or a rate you have been offered against one you are negotiating for.
The formula behind it
Every amortising loan uses one equation. The monthly instalment is:
EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1)
P is the principal, r is the monthly interest rate (the annual rate divided by twelve, then by a hundred), and n is the total number of months. The result is a payment that stays flat for the whole term while its composition shifts: early instalments are mostly interest, later ones mostly principal.
That shift is the part borrowers rarely see, and it is why the schedule above matters. On a twenty-year loan at 9.5%, roughly three quarters of your first payment goes to interest. You do not cross the halfway mark, where more of the payment reduces the balance than services the interest, until deep into the second decade.
What actually changes your EMI
Three levers, with very different consequences.
Borrowing less reduces the payment and the total interest in direct proportion. A 10% smaller loan costs 10% less every month and 10% less in total interest.
A lower rate is the most efficient lever, because interest compounds on the outstanding balance. Shaving one percentage point off a long mortgage typically saves more than a year of payments over the full term.
A longer tenure is the lever people reach for first and should treat most carefully. It lowers the monthly figure, which feels like relief, while raising the total cost — often dramatically. Run the compare mode with fifteen years against thirty at the same rate and amount, and look at the interest difference. On most realistic inputs, the thirty-year option costs well over twice as much in interest for a payment that is nowhere near half as large.
Prepayment
Because interest accrues on the outstanding balance, any extra payment reduces every future interest charge as well as the principal. The timing matters enormously: a lump sum in year two saves far more than the same sum in year fifteen, because the balance it removes would otherwise have been accruing interest for another thirteen years.
Check the terms before you commit, though. Some lenders levy prepayment penalties, particularly on fixed-rate products, and some apply extra payments to future instalments rather than to the principal — which saves you nothing.
Not financial advice. This calculator uses the standard amortisation formula and does not account for processing fees, insurance requirements, variable rates, or your lender's specific rounding. Confirm the figures with the lender before signing, and speak to a qualified adviser about whether a loan suits your circumstances.
Frequently asked questions
What is an EMI?
An equated monthly instalment is a fixed payment made every month until the loan is cleared. Each payment covers the interest accrued that month, and whatever remains reduces the outstanding principal. The amount stays constant; the split between interest and principal changes every month.
How is EMI calculated?
Using the formula above. In practice, the monthly rate is the annual rate divided by twelve, and the exponent is the number of months in the term. The calculator shows the substituted version in the working panel so you can check it against your own arithmetic.
Can I reduce my EMI?
Borrow less, negotiate a lower rate, or extend the term. Refinancing to a cheaper lender achieves the second, and is usually worth investigating if rates have fallen since you borrowed or your credit profile has improved. Extending the term should be a last resort, since it raises what you ultimately pay.
What happens if I miss an instalment?
Most lenders apply a late fee after a short grace period and report the miss to credit bureaus once it passes thirty days. Persistent non-payment can trigger penalty interest and, on secured loans, recovery of the asset. If you expect to miss one, contact the lender before the due date — restructuring is usually available and far cheaper than default.
Why does my bank quote a different figure?
Usually one of three reasons: the bank is including processing fees or insurance in the payment, it compounds daily rather than monthly, or it rounds to a different unit. Differences of a few units per month are normal. Differences of more than a percent or two are worth asking about.
Is a shorter tenure always better?
Financially, it costs less in total interest. But a higher monthly payment reduces your flexibility, and a loan you can comfortably service is safer than one that leaves no margin. The usual guidance is to pick the shortest term whose payment you could still meet if your income dropped.