EMI (Equated Monthly Installment) is the fixed monthly payment you make to repay a loan. Each EMI covers a portion of the principal and the interest, calculated so the loan is fully repaid by the end of the tenure.

How is EMI calculated?

EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1), where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments.

What is an amortization schedule?

An amortization schedule shows the breakdown of each monthly payment into principal and interest components. Early payments are mostly interest; later payments are mostly principal. This tool shows the full schedule for any loan.

How can I reduce my total interest payment?

You can reduce total interest by making prepayments (extra principal payments), choosing a shorter tenure, negotiating a lower interest rate, or making a larger down payment to reduce the loan principal.

What is the difference between flat rate and reducing balance interest?

Flat rate interest is calculated on the original principal throughout the tenure. Reducing balance (used in this calculator) calculates interest on the outstanding principal each month, which is lower and the industry standard for most loans.

How does loan tenure affect EMI?

Longer tenure means lower monthly EMI but significantly higher total interest paid. Shorter tenure means higher EMI but much lower total interest. Use the comparison panel to see the exact trade-off for your loan amount.

Free Loan EMI Calculator Online

Calculate your monthly EMI for home, car, personal, or education loans on a reducing-balance basis. See the full amortization schedule, principal-vs-interest split, and how prepayments save you money.

Loan amount

Annual interest rate (%)

Tenure

Unit

Loan type

Currency

Monthly EMI

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Total payable: —
Total interest: —
Interest % of loan: —

Principal: —

Interest: —

Formula

Amortization Schedule

Month	EMI	Principal	Interest	Balance

Prepayment Calculator

Extra payment each month

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Frequently Asked Questions

What is EMI?: EMI (Equated Monthly Installment) is the fixed monthly payment you make to repay a loan. Each EMI covers a portion of the principal and the interest, calculated so the loan is fully repaid by the end of the tenure.
How is EMI calculated?: EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1), where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of monthly payments.
What is an amortization schedule?: An amortization schedule shows the breakdown of each monthly payment into principal and interest components. Early payments are mostly interest; later payments are mostly principal. This tool shows the full schedule for any loan.
How can I reduce my total interest payment?: You can reduce total interest by making prepayments (extra principal payments), choosing a shorter tenure, negotiating a lower interest rate, or making a larger down payment to reduce the loan principal.
What is the difference between flat rate and reducing balance interest?: Flat rate interest is calculated on the original principal throughout the tenure. Reducing balance (used in this calculator) calculates interest on the outstanding principal each month, which is lower and the industry standard for most loans.
How does loan tenure affect EMI?: Longer tenure means lower monthly EMI but significantly higher total interest paid. Shorter tenure means higher EMI but much lower total interest. Use the comparison panel to see the exact trade-off for your loan amount.