EMI calculator
Monthly instalment, total interest, and what the loan really costs.
Fixed-rate, reducing-balance EMI. Processing fees and prepayments not included.
Figures are indicative. Thresholds, surcharge and current-year notifications are not fully modelled — confirm edge cases with your CA.
What this calculates
An equated monthly instalment keeps the payment constant and shifts what it is made of: early instalments are mostly interest, later ones mostly principal. The instalment itself is the number people compare, but the one that decides whether a loan is a good idea is the total interest over the full tenure — and a longer tenure lowers the first while raising the second, often sharply.
How it is worked out
- 1Convert the annual interest rate to a monthly rate by dividing by twelve, and the tenure in years to a number of months.
- 2The instalment is the principal times the monthly rate, times one plus the monthly rate raised to the number of months, divided by that same quantity less one.
- 3Total repayment is the instalment multiplied by the number of months.
- 4Total interest is the total repayment minus the amount borrowed.
Worked example
₹50,00,000 borrowed at 9% a year over 20 years.
- Monthly instalment
- about ₹44,986
- Months
- 240
- Total repayment
- about ₹1,07,96,711
- Total interest
- about ₹57,96,711
Common questions
How is EMI calculated?
From three inputs: the principal, the monthly interest rate, and the number of months. The formula keeps the payment level across the tenure, so the split between interest and principal shifts month by month while the instalment itself stays the same.
Does a longer tenure make a loan cheaper?
It makes the monthly instalment smaller and the loan more expensive. Interest accrues for longer, so total interest rises — often by a great deal. The instalment and the total cost move in opposite directions, which is the trade-off the tenure is really choosing between.
What happens if I prepay part of the loan?
A prepayment reduces the outstanding principal, so all the interest that would have accrued on that amount for the rest of the tenure disappears. Prepaying early saves far more than prepaying late, because early instalments are mostly interest.
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