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emi.me

EMI Calculator

Work out the monthly instalment on any loan, see the full amortization schedule, and model a prepayment — all with the same formula your bank uses.

₹10,00,000
9.00%
10 years

Monthly EMI

₹12,667.58

Principal
₹10,00,000
Total interest
₹5,20,109
Total of 120 payments
₹15,20,109
PrincipalInterest

Works for any reducing-balance loan. Typical bank rates run ~8–24% p.a. depending on the loan type. Figures are estimates — confirm exact terms with your lender.

How your EMI is calculated

Every result on this page uses the reducing-balance method, the standard for retail loans in India and most of the world. The instalment is fixed by this formula: 

EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)

where P is the principal (amount borrowed), r is the monthly interest rate — the annual rate divided by 12 and by 100 — and n is the tenure in months. "Reducing balance" means interest each month is charged only on what you still owe, not on the original amount, so as the balance falls the interest portion shrinks.

A worked example

Borrow ₹10,00,000 at 9% a year for 10 years (120 months). The monthly rate is 9 ÷ 12 ÷ 100 = 0.0075. Plugging into the formula gives an EMI of about ₹12,668. Over the full term you repay roughly ₹15,20,109 — that is ₹10,00,000 of principal plus about ₹5,20,109 of interest.

Look at how the very first instalment splits. Interest for month one is the balance times the monthly rate: ₹10,00,000 × 0.0075 = ₹7,500. The remaining ₹5,168 of the ₹12,668 goes to principal. By the final months that ratio flips almost completely — which is exactly why prepaying early saves so much interest.

What the tools above do

Toggle "Show amortization schedule" to see every instalment (or a year-by-year summary) with its interest, principal and falling balance. Switch on a prepayment to add a lump sum or a monthly extra and watch the calculator recompute your interest saved and new payoff date — choosing whether the benefit cuts your tenure or your EMI. Every change updates the shareable link, so you can bookmark or send a scenario.

Frequently asked questions

What exactly is an EMI?
EMI stands for Equated Monthly Instalment — the fixed amount you pay your lender every month until the loan is cleared. Each instalment is the same size, but its split between interest and principal changes over time: early EMIs are mostly interest, later ones mostly principal.
How is the EMI figure calculated?
It uses 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 (annual rate ÷ 12 ÷ 100) and n is the tenure in months. Interest each month is charged only on the balance still outstanding, which is why it is called 'reducing balance'.
Does a bigger down payment lower my EMI?
Yes. A larger down payment reduces the principal you borrow, and EMI is directly proportional to principal. Halve the loan amount and you halve the EMI, with the rate and tenure unchanged.
Can I reduce my EMI after the loan starts?
Often, yes — by making a part-payment and asking the lender to keep the tenure but lower the EMI, by refinancing to a lower rate, or by extending the tenure (which lowers the EMI but raises total interest). Use the prepayment toggle above to see the effect of each.
How accurate is this calculator?
The engine is unit-tested against independently computed values and uses the same reducing-balance method banks use. Your lender may round the EMI to the nearest rupee and add fees (processing charges, insurance, GST), so treat the result as an accurate estimate of the core instalment rather than a final sanction letter.

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