EMI Calculator
By Varun M
Enter your loan amount, interest rate, and tenure to see your monthly EMI, plus exactly how much of what you'll pay is principal vs. interest.
Enter a valid loan amount, rate, and tenure (more than 0 months) to see your EMI.
Monthly EMI
Total interest payable
Total payment (principal + interest)
How to use this calculator
Enter your loan amount, the annual interest rate your lender quotes, and the tenure. The EMI updates instantly, along with how much of your total repayment is interest vs. principal — on a long-tenure loan, interest is often a bigger share than people expect.
The formula, explained
EMI = P × r × (1+r)^n / ((1+r)^n − 1)
Where P is the loan amount, r is the monthly interest rate
(annual rate ÷ 12 ÷ 100), and n is the tenure in months. This is the
reducing-balance method — interest is charged only on the
outstanding principal each month, not the original loan amount. RBI's Fair Practices
Code requires lenders to use this method for retail loans, rather than a flat-rate method
that would overstate interest.
Worked example
A ₹25,00,000 loan at 9% annual interest over 20 years (240 months):
- Monthly EMI: ₹22,493
- Total payment over 20 years: ₹53,98,356
- Total interest paid: ₹28,98,356 — more than the original loan amount
That last figure surprises people every time: on a long-tenure loan at this rate, total interest can exceed the principal itself. Shortening the tenure (if you can afford a higher EMI) or making prepayments early — when the interest component of each EMI is highest — reduces this the most.
What this doesn't model
- Processing fees, prepayment charges, or insurance premiums some lenders bundle into a loan.
- Floating-rate changes over the loan's life — this shows a fixed-rate calculation for the rate you enter today.
- Prepayment/part-payment schedules, which can meaningfully cut total interest versus what's shown here.
FAQ
Using the reducing-balance formula: EMI = P × r × (1+r)ⁿ / ((1+r)ⁿ − 1), where P is the loan amount, r is the monthly interest rate, and n is the tenure in months. Interest is charged only on the outstanding balance each month, not the original loan amount.
On long-tenure loans (like a 20-year home loan), the outstanding balance stays high for many years, so interest accumulates substantially even though each EMI includes some principal repayment. It's common for total interest to exceed the original loan amount on a 20+ year tenure.
Yes — a longer tenure lowers your monthly EMI but increases total interest paid, because the balance stays outstanding (and accruing interest) for longer. A shorter tenure raises the EMI but reduces total interest.
A prepayment reduces your outstanding principal, which — depending on what you and your lender agree — either lowers your remaining EMIs or shortens your tenure. Prepaying early in the loan (when the interest component of each EMI is largest) saves the most total interest. This calculator doesn't model prepayment schedules directly; recalculate with the reduced principal and remaining tenure to see the effect.
It should be very close for a standard fixed-rate reducing-balance loan, but banks may add processing fees, insurance, or other charges that aren't part of the EMI formula itself. Floating-rate loans will also change over time as the rate resets. Treat this as an estimate and confirm the exact figure with your lender.
Formula last verified: 14 Aug 2026
Sources: Standard reducing-balance (amortising) EMI formula; RBI's Fair Practices Code requires lenders to use this method (not a flat-rate method) for retail loans.
This is an indicative estimate. It does not include processing fees, prepayment charges, insurance premiums, or floating-rate changes over the loan's life — it shows a fixed-rate calculation for the rate you enter. Confirm your exact EMI and total cost with your lender before making a borrowing decision.