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Calculates

EMI Calculator

Calculate your monthly loan payment, total interest and repayment schedule.

Calculated & verified for mathematical accuracy·Reviewed by the Calculates Editorial Team

Loan details

0 – 10,00,00,000
0 – 50
1 – 40

Total duration: 10 yr (120 payments)

Tenure unit

Monthly EMI

₹12,399

Payable every month for 10 yr.

Principal amount
₹10,00,000
Total interest
₹4,87,828
Total payment
₹14,87,828
Interest share
32.79%
  • Principal₹10,00,000
  • Interest₹4,87,828

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About this calculator

An EMI (Equated Monthly Instalment) is the fixed amount you repay each month until a loan is fully cleared. Each instalment covers the interest accrued that month plus a portion of the principal. This calculator shows your EMI, how much interest you pay in total, and exactly how the balance reduces month by month.

How to use this calculator

  1. Enter the loan amount

    Use the amount you will actually borrow — the sanctioned principal after any down payment, not the total price of what you are buying.

  2. Enter the annual interest rate

    Use the rate your lender quotes per year. For floating-rate loans, use the current rate to see your EMI today.

  3. Set the tenure

    Switch between years and months depending on how your loan is quoted. A longer tenure lowers the EMI but increases total interest.

  4. Review the schedule

    Open the amortization schedule to see how each payment splits between interest and principal, and when the balance clears.

Formula

EMI = P × r × (1 + r)ⁿ / ((1 + r)ⁿ − 1)
  • P is the principal — the amount borrowed.
  • r is the monthly interest rate: the annual rate divided by 12, then by 100. A 8.5% annual rate gives r = 0.085 / 12 ≈ 0.00708.
  • n is the total number of monthly payments: tenure in years × 12.
  • When the interest rate is 0%, the formula is undefined (0 ÷ 0) and the EMI is simply P ÷ n.

Worked example

Inputs

  • Loan amount (P): ₹10,00,000
  • Interest rate: 8.5% per year
  • Tenure: 10 years (n = 120 months)

Calculation

r = 8.5 / 12 / 100 = 0.0070833 (1 + r)ⁿ = (1.0070833)¹²⁰ = 2.33265 EMI = 1000000 × 0.0070833 × 2.33265 ──────────────────────────────── 2.33265 − 1 = 16522.92 / 1.33265 = 12398.57

The EMI is ₹12,398.57 per month. Over 120 months you repay ₹14,87,828 in total, of which ₹4,87,828 is interest.

What the result means

  • The EMI is what leaves your account each month. Lenders typically expect all your EMIs combined to stay under about 40–50% of your net monthly income.
  • Total interest is the real cost of borrowing. In the example above, ₹4.88 lakh of interest on a ₹10 lakh loan means you repay almost 1.5× what you borrowed.
  • Early instalments are mostly interest. In month one of the example, roughly ₹7,083 of the ₹12,399 EMI is interest and only ₹5,316 reduces the principal — which is why prepaying early saves far more than prepaying late.
  • Interest share shows what proportion of your total payment is pure cost. Compare this figure across tenures before committing to a longer loan.

Related calculations

  • Compare the same loan over different tenures to see how much extra interest a longer term costs.
  • Increase the loan amount to find the maximum you can borrow while keeping the EMI affordable.
  • Test a rate one or two percentage points higher to stress-test a floating-rate loan against future hikes.

Frequently asked questions

What is an EMI?

EMI stands for Equated Monthly Instalment — a fixed monthly payment that repays both interest and principal on a loan. The amount stays the same each month, but the split changes: early payments are mostly interest, while later payments are mostly principal.

How is EMI calculated?

EMI is calculated using the formula 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 payments. The formula spreads the loan and its interest evenly across every month of the tenure.

Does a longer tenure reduce my EMI?

Yes, a longer tenure lowers the monthly EMI because the principal is spread over more payments. However, you pay interest for longer, so the total interest rises significantly. A ₹10 lakh loan at 8.5% costs about ₹4.88 lakh in interest over 10 years but roughly ₹10.83 lakh over 20 years — more than double.

Why is most of my early EMI going to interest?

Interest is charged on the outstanding balance, which is highest at the start. As the balance falls, the interest portion of each EMI shrinks and more of the payment goes towards principal. This is why prepaying in the early years reduces total interest far more than prepaying near the end.

Does this calculator include processing fees or insurance?

No. It calculates the EMI on the loan principal and interest rate alone. Processing fees, documentation charges, insurance premiums and GST on fees are separate costs your lender will add, so your actual outgo may be slightly higher.

Will my EMI change during the loan?

On a fixed-rate loan the EMI stays the same for the full tenure. On a floating-rate loan the rate moves with the lender’s benchmark; most lenders keep the EMI unchanged and adjust the tenure instead, though some revise the EMI directly.

What happens if I make a prepayment?

A prepayment reduces the outstanding principal, so less interest accrues from that point on. You can then either keep the EMI the same and finish the loan earlier, or ask the lender to reduce the EMI over the original tenure. Finishing earlier saves more interest.

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