EMI Calculator
Calculate your monthly loan instalment instantly. Enter the loan amount, interest rate, and tenure — see your EMI, total interest payable, and a full repayment schedule in seconds.
Monthly EMI
$2,052
Total Interest
$23,099
18.8% of total
Total Payment
$123,099
Principal + Interest
Principal vs Interest
Principal
$100,000 (81.2%)
Interest
$23,099 (18.8%)
Outstanding Balance by Year
Amortization Schedule
| Month | EMI | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $2,052 | $1,343 | $708 | $98,657 |
| 2 | $2,052 | $1,353 | $699 | $97,304 |
| 3 | $2,052 | $1,362 | $689 | $95,941 |
| 4 | $2,052 | $1,372 | $680 | $94,569 |
| 5 | $2,052 | $1,382 | $670 | $93,188 |
| 6 | $2,052 | $1,392 | $660 | $91,796 |
| 7 | $2,052 | $1,401 | $650 | $90,395 |
| 8 | $2,052 | $1,411 | $640 | $88,983 |
| 9 | $2,052 | $1,421 | $630 | $87,562 |
| 10 | $2,052 | $1,431 | $620 | $86,130 |
| 11 | $2,052 | $1,442 | $610 | $84,689 |
| 12 | $2,052 | $1,452 | $600 | $83,237 |
What is EMI?
An Equated Monthly Instalment (EMI) is a fixed amount you pay to your lender every month until the loan is fully repaid. Each payment covers both the interest accrued for the month and a portion of the principal. As the loan balance reduces over time (under the reducing balance method), the interest component decreases while the principal component increases — keeping the monthly EMI constant throughout.
How to use EMI Calculator
- 1Enter your loan amount
Use the slider or type the principal amount directly into the number input. Both stay in sync. Indian lakh/crore formatting is applied automatically for INR.
- 2Set the annual interest rate
Drag the rate slider or type the rate (e.g. 8.5). Rates between 1% and 36% are supported in steps of 0.1%.
- 3Choose the tenure
Enter the loan duration in years or months using the toggle. The tool converts to months internally for all calculations.
- 4Select a calculation mode
Choose Reducing Balance (standard bank method — interest on outstanding balance) or Flat Rate (interest on original principal). Hover the ? icon for a detailed explanation.
- 5Read your results
Your monthly EMI, total interest payable, and total payment appear instantly. Scroll down for the principal vs interest chart, year-wise balance chart, prepayment simulator, and the full amortization table.
Frequently Asked Questions
What is EMI?
- EMI stands for Equated Monthly Instalment — a fixed monthly payment you make to a lender until your loan is fully repaid. Each EMI covers both the interest accrued for the month and a portion of the principal. Under the reducing balance method, as the outstanding loan amount decreases, the interest component shrinks while the principal component grows, but the total EMI stays constant.
How is EMI calculated?
- For the reducing balance method, the formula is: 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 total number of months. For the flat rate method: EMI = (P + P × R × T) / (T × 12), where R is the annual rate as a decimal and T is tenure in years.
What is the difference between flat rate and reducing balance?
- With the reducing balance method, interest is calculated on the outstanding loan balance each month. As you repay, the balance falls, so you pay less interest over time — making it cheaper overall. With the flat rate method, interest is calculated on the original principal for the entire tenure regardless of how much you've repaid, making it more expensive. Most banks in India use the reducing balance method for home and car loans.
Does prepayment reduce EMI or tenure?
- It depends on your lender's policy. Most banks apply a prepayment to reduce the remaining tenure while keeping the EMI constant — this saves the most interest. Some lenders let you choose to reduce the EMI instead. Use the Prepayment Simulator on this page to see exactly how much interest and how many months you can save with a one-time extra payment.
What happens if I miss an EMI?
- Missing a loan payment typically incurs a late payment fee (commonly $25–50 or 1–5% of the payment due) and negatively impacts your credit score. Multiple missed payments can result in the loan being sent to collections, default status, and potential legal action. If you anticipate difficulty making a payment, contact your lender proactively — many offer hardship programs, deferment, or restructuring options that can prevent a formal default.
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