EMI Calculator

EMI (Equated Monthly Installment) is a fixed monthly payment that covers both the interest accruing on the outstanding loan principal and a portion of the principal itself. Every EMI payment is identical, but the proportion going to interest decreases each month as the principal shrinks.

EMI formula:

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

Where:

• P = Principal, the original loan amount
• r = Monthly interest rate = Annual Interest Rate ÷ 12 ÷ 100
• n = Loan tenure in months (years × 12)

Total repayment amount:

Total Amount = EMI × n

Total interest paid:

Total Interest = (EMI × n) − P

What each variable means:

• Principal (P): the total disbursed loan amount; for home loans, this is the sanctioned amount minus any down payment
• Monthly interest rate (r): for an 8% annual rate: r = 8 ÷ 12 ÷ 100 = 0.00667
• Tenure (n): longer tenure means lower EMI but far more interest paid over the life of the loan
• Reducing balance method: EMI is always calculated on the reducing outstanding balance, not the original principal; this is the standard for most bank loans worldwide

EMI composition changes over time:

• Month 1: mostly interest on a long loan, small principal
• Somewhere past the middle, principal overtakes interest. On the 20-year loan in the worked example below that happens at month 143 of 240, not month 120
• Final month: almost all principal, tiny interest

Reference: EMI for ₹10,00,000 loan at 9% p.a.

• 5-year tenure: EMI ≈ ₹20,758 | Total interest ≈ ₹2,45,501
• 10-year tenure: EMI ≈ ₹12,668 | Total interest ≈ ₹5,20,109
• 20-year tenure: EMI ≈ ₹8,997 | Total interest ≈ ₹11,59,342

Worked example:

Home loan: ₹50,00,000. Annual rate: 8.5%. Tenure: 20 years (240 months).

r = 8.5 ÷ 12 ÷ 100 = 0.0070833
(1.0070833)^240 = 5.4412
EMI = 50,00,000 × 0.0070833 × 5.4412 ÷ 4.4412
= ₹43,391.16/month

Total paid = ₹43,391.16 × 240 = ₹1,04,13,879
Total interest = ₹1,04,13,879 − ₹50,00,000 = ₹54,13,879, which is more than the original loan.

Your bank will round the EMI to the rupee and collect ₹43,391, which over 240 months comes to ₹1,04,13,840, about ₹39 less. Lenders usually square that off in the final instalment.

Carry that exponent to four decimals. It is the term everyone rounds hardest and it moves the answer most: at 5.05 instead of 5.4412 the same loan comes out at ₹44,162, which is ₹770 a month and about ₹1,85,000 across the full term.

Currency: the calculator follows the currency picker at the top of the page. Rupee amounts are grouped the Indian way, in lakhs and crores, so the total above appears as ₹1,04,13,879 rather than as ₹10,413,879.