EMI Calculator
Find your monthly instalment for a home, car or personal loan, with the total interest and a year-by-year repayment schedule.
Year-by-year repayment schedule
| Year | Principal paid | Interest paid | Balance left |
|---|
How your EMI is worked out
EMI = loan × monthly rate × growth ÷ (growth − 1).
- 1
Monthly rate
10% ÷ 12 = 0.8333%
- 2
Growth over the term
(1 + 0.008333)60
= 1.6453 - 3
Your monthly EMI
₹10,00,000
× 0.008333
× 1.6453 ÷ 0.6453
= ₹21,247 - 4
Total interest
60 × EMI
= ₹12,74,823
− ₹10,00,000
= ₹2,74,823
Read more: the EMI formula, a worked example and ways to pay less
An EMI (equated monthly instalment) is the same payment every month until the loan is repaid. Each payment covers that month's interest first, and the rest pays off the loan. Early on most of the EMI is interest; towards the end most of it is principal.
EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)
Here P is the loan amount, r is the monthly interest rate (the annual rate ÷ 12 ÷ 100), and n is the number of monthly payments.
Worked example
A loan of ₹10,00,000 at 10% a year for 5 years has r = 10 ÷ 12 ÷ 100 = 0.008333 and n = 60. The EMI comes to ₹21,247. Over 60 months you pay ₹12,74,823, of which ₹2,74,823 is interest.
Ways to pay less interest
- A shorter term raises the EMI but cuts the total interest sharply.
- Part-prepayments early in the loan save the most, because that is when the balance is highest.
- A rate even 0.5% lower makes a big difference on long home loans, so it is worth comparing lenders.
Assumes a fixed rate and monthly payments in arrears, the standard method used by banks in India and most other countries. Your lender's figures may differ slightly because of rounding, processing fees or the date of the first payment.