EMI / Loan Calculator

How to calculate your loan EMI: step by step

1. 1
   Enter the principal amount
   Type the total loan amount: the sum you are borrowing before interest. For a home loan this is the property value minus your down payment.
2. 2
   Enter the annual interest rate
   Type the annual interest rate as a percentage. Use the rate quoted by your lender (e.g. 8.5 for 8.5% per annum). The calculator converts this to a monthly rate automatically.
3. 3
   Set the loan tenure
   Enter how long the loan runs. Toggle between years and months: 5 years and 60 months produce the same result. Home loans are typically 15–30 years; personal loans 1–5 years.
4. 4
   Read the EMI and summary
   The Monthly EMI card shows your payment. Total Payment is EMI × total months, and Total Interest is the cost of borrowing: Total Payment minus the principal.
5. 5
   Review the amortization schedule
   The table shows each month's payment broken into principal and interest portions, plus the remaining balance. Early payments are mostly interest; later ones mostly principal: this is normal for reducing-balance loans.

Frequently Asked Questions

What is EMI?

EMI stands for Equated Monthly Instalment. It is the fixed amount you pay every month for the duration of your loan. Each payment covers part of the principal and part of the accumulated interest.

How is EMI calculated?

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 payments. This formula assumes a reducing-balance (amortizing) loan.

Why do early payments have more interest than later ones?

Interest accrues on the outstanding balance. At the start, the balance is at its highest, so the interest portion of each EMI is large and the principal reduction is small. Over time the balance falls and more of each payment goes to principal. This is how all standard reducing-balance loans work.

What is an amortization schedule?

An amortization schedule is a complete table of every payment over the loan term, showing for each period how much goes to interest, how much goes to principal, and what the remaining balance is. It lets you see exactly how your loan will be paid off.

What is the total interest on a loan?

Total interest = (EMI × number of months) − principal. It is the total cost of borrowing beyond the amount you received. For a long-term loan at a high rate, this can exceed the principal itself.

How does the interest rate affect EMI?

Higher interest rates increase the EMI because each month's interest charge is larger. On a 30-year mortgage, a 1% increase in rate can add tens of thousands to total interest paid. Use this calculator to compare scenarios.

Can I use this for home loans, car loans, and personal loans?

Yes. The EMI formula applies to any reducing-balance loan regardless of purpose. Enter the principal, rate, and tenure for any loan type and the calculation is the same.

What happens if the interest rate is 0%?

At 0% interest, EMI = principal / number of months. The calculator handles this case and shows no interest in the amortization schedule: every payment goes entirely to principal.

Is this calculator free to use?

Completely free. The calculation runs entirely in your browser: no data is sent to any server and no account is required.