EMI Calculator
GuideCalculate your Equated Monthly Installment and plan your loan better.
A ₹50,00,000 loan at 8.5% over 20 years works out to an EMI of about ₹43,391/month — you repay ₹1.04Cr in all, of which ₹54.14L is interest (a planning estimate, before fees).
Your monthly EMI
₹43,391
Payable every month for 240 instalments at 8.5% p.a.
Total Interest Payable
₹54.14L
Total Payment
₹1.04Cr
Principal
₹50.00L
Total Tenure
20 Years
Interest is 52.0% of everything you repay — 108.3% on top of what you borrow.
Principal vs interest breakup
Total payment
₹1.04 Cr
- Principal48%
- Interest52%
Principal
₹50.00L · 48%
Interest
₹54.14L · 52%
Loan overview
EMI Breakup (First EMI)
How your very first instalment splits between interest and principal.
- Interest
- ₹35,417
- Principal
- ₹7,974
- Total EMI
- ₹43,391
Payment Breakup Over Time
Cumulative principal vs interest paid — and the year principal overtakes interest.
- Cumulative Interest Paid
- Cumulative Principal Paid
Loan Summary at a Glance
- EMI starts from
- —
- EMI due date
- 5th of each month
- Tenure
- 20 Years
- Interest type
- Reducing Balance
EMI Comparison
Same ₹50.00L loan over 20 years at nearby interest rates.
| Rate | Monthly EMI | Total interest | Total payment |
|---|---|---|---|
| 7.5% | ₹40,280 | ₹46.67 L | ₹96.67 L |
| 8.5%yours | ₹43,391 | ₹54.14 L | ₹1.04 Cr |
| 9.5% | ₹46,607 | ₹61.86 L | ₹1.12 Cr |
| 10.5% | ₹49,919 | ₹69.81 L | ₹1.20 Cr |
A single percentage point on the rate moves both your EMI and your total interest noticeably.
Tenure Comparison
Same ₹50.00L loan at 8.5% over different tenures.
| Tenure | Monthly EMI | Total interest |
|---|---|---|
| 15 years | ₹49,237 | ₹38.63 L |
| 20 yearsyours | ₹43,391 | ₹54.14 L |
| 25 years | ₹40,261 | ₹70.78 L |
| 30 years | ₹38,446 | ₹88.40 L |
A shorter tenure raises the EMI but cuts the total interest sharply — the principal clears faster.
Prepayment Impact
A one-time ₹5.00 L prepayment (10% of principal) after 2 years, keeping the same EMI.
EMI
₹43.4K · unchanged
Interest Saved
₹14.45 L
Tenure Reduced By
3 Years / 8 Months
Keeping the EMI the same and finishing sooner saves more interest than lowering the EMI. Real lenders may set prepayment rules — check yours.
Amortization Schedule (First 5 EMIs)
Principal, interest and outstanding balance for each of the 240 instalments.
| EMI No. | Date | EMI | Principal | Interest | Balance |
|---|---|---|---|---|---|
| 1 | — | ₹43,391 | ₹7,974 | ₹35,417 | ₹49.92 L |
| 2 | — | ₹43,391 | ₹8,031 | ₹35,360 | ₹49.84 L |
| 3 | — | ₹43,391 | ₹8,088 | ₹35,303 | ₹49.76 L |
| 4 | — | ₹43,391 | ₹8,145 | ₹35,246 | ₹49.68 L |
| 5 | — | ₹43,391 | ₹8,203 | ₹35,188 | ₹49.60 L |
How EMI Calculation Works
EMI = P × R × (1+R)N / ((1+R)N − 1)
Things to Remember
- Your EMI stays fixed on a fixed-rate loan; on a floating rate it moves with the benchmark.
- Early instalments are mostly interest; the principal share rises over time.
- Processing fees, insurance and stamp duty are extra and not shown here.
- Missing EMIs adds penalties and hurts your credit score.
Benefits of Prepayment
- Cuts the outstanding principal, so less interest accrues every month after.
- Prepaying early — when the balance is highest — saves the most interest.
- Keeping the EMI the same and finishing sooner beats lowering the EMI.
- Can shorten the tenure and free up your monthly cashflow sooner.
Ideal EMI Guideline
Keep your total EMIs within 30% of your monthly income.
This is a widely-used rule of thumb, not a calculation from your income — this tool has no income input. Lenders set their own limits.
Every figure here is computed with the standard reducing-balance method: EMI = P·R·(1+R)N / ((1+R)N − 1), with interest charged only on the balance that remains. Comparisons re-run the same maths at each rate and tenure. Figures exclude processing fees, insurance and — on floating loans — rate resets, and prepayment rules vary by lender. Treat the output as a planning estimate at the rate you entered, not an offer.
Useful Tools
How an EMI is calculated
EMI = P × R × (1 + R)ⁿ ÷ ((1 + R)ⁿ − 1)
- EMI
- equated monthly instalment
- P
- loan amount (principal)
- R
- monthly rate = annual rate ÷ 12 ÷ 100
- n
- number of months = years × 12
Worked example
With your inputs — ₹50,00,000 at 8.5% p.a. over 20 years: the monthly rate is R = 8.5 ÷ 12 ÷ 100 = 0.708% and n = 20 × 12 = 240 instalments. Running the reducing-balance formula gives an EMI of about ₹43,391/month, so you repay ₹1.04Cr in all — ₹54.14L of it interest. A planning estimate at the rate you entered, before processing fees, insurance and any floating-rate resets.
About EMI Calculator
This calculator works out the equated monthly instalment for any loan using the standard reducing-balance method, then breaks down the interest, the amortization schedule, and how different rates, tenures and prepayments change what you pay — so you can plan the loan honestly.
Important Notes
- All figures are estimates only.
- Exact EMI varies by bank and product.
- Check current offers and the fine print.
- Prepayment rules vary by lender.
Frequently Asked Questions
An EMI (equated monthly instalment) is the fixed amount you pay your lender every month until the loan is repaid. Each instalment covers part of the interest due that month plus part of the outstanding principal, so the balance steadily falls to zero by the end of the tenure.
This calculator 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 number of monthly instalments. Interest is charged only on the balance that remains, so it shrinks as you repay.
A prepayment reduces your outstanding principal directly. Because interest is charged on the balance, a smaller balance means less interest accrues every month after — so prepaying early in the tenure, when the balance is highest, saves the most. Keeping the EMI the same and finishing sooner saves more interest than lowering the EMI.
Yes, dramatically. A longer tenure lowers the monthly EMI but stretches interest over more years, so you pay far more in total. A shorter tenure raises the EMI but can cut total interest by a third or more, because the principal clears faster and less interest accrues. The comparison above shows both sides for your loan.
The complete guide to loan EMIs
What an EMI really hides
An EMI bundles a loan's repayment into one fixed monthly figure, which makes budgeting simple but hides how much of each payment is interest. On the reducing-balance method used here, interest is charged only on the principal still outstanding, so early instalments are mostly interest and later ones mostly principal — even though the EMI itself never changes. Over a long tenure, the interest can rival or exceed the amount you borrowed in the first place.
How the EMI is calculated
The standard formula is EMI = P·R·(1+R)^N / ((1+R)^N − 1), where P is the loan amount, R the monthly interest rate (annual rate ÷ 12 ÷ 100) and N the number of monthly instalments. Because interest accrues on the reducing balance, the total interest depends heavily on the tenure: stretch the loan and the monthly EMI falls, but the total interest climbs sharply.
Why prepayment is the biggest lever
A prepayment cuts your outstanding principal directly, and since interest is charged on that balance, every future month accrues less interest. Prepaying early — when the balance is largest — saves the most, which is why even a modest extra amount can shave years off the loan and save a large slice of interest. Keeping the EMI the same and finishing sooner beats lowering the EMI on the same balance.
Fixed vs floating, fees, and the fine print
A fixed rate keeps your EMI constant for the whole tenure; a floating rate moves with market benchmarks, so your EMI or tenure changes at every reset. Real loans also carry processing fees, insurance and prepayment terms that this calculator doesn't model. Treat these figures as a planning estimate at the rate you entered, and confirm the exact terms — including any prepayment charges — with your lender before borrowing.