How to use it
- Tap a loan type to fill a typical interest rate and tenure, or skip this and enter your own.
- Enter the loan amount, the interest rate (% per year) and the tenure in years or months — type the numbers or drag the sliders.
- Your monthly EMI, total interest and total payment update instantly, with a chart of principal vs interest.
- Tap “Show yearly breakdown” to see how much principal and interest you pay each year and the balance left.
The EMI formula
Most banks and NBFCs in India calculate EMIs on a reducing balance with monthly rests, using this formula:
EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)
- P = loan amount (principal)
- r = monthly interest rate = annual rate ÷ 12 ÷ 100
- n = tenure in months
Worked example
For a loan of ₹10,00,000 at 8.5% a year for 20 years:
- r = 8.5 ÷ 12 ÷ 100 = 0.0070833
- n = 20 × 12 = 240 months
- (1 + r)ⁿ = 1.0070833²⁴⁰ ≈ 5.4412
- EMI = 10,00,000 × 0.0070833 × 5.4412 ÷ 4.4412 ≈ ₹8,678
- Total payment = ₹8,678 × 240 ≈ ₹20,82,776, so total interest ≈ ₹10,82,776
If the interest rate is 0%, the formula doesn’t apply and the EMI is simply the loan amount divided by the number of months.
How tenure changes your EMI and interest
The same ₹10,00,000 loan at 8.5% a year, repaid over different tenures:
| Tenure | Monthly EMI | Total interest |
|---|---|---|
| 10 years | ₹12,399 | ₹4,87,828 |
| 15 years | ₹9,847 | ₹7,72,531 |
| 20 years | ₹8,678 | ₹10,82,776 |
| 25 years | ₹8,052 | ₹14,15,681 |
| 30 years | ₹7,689 | ₹17,68,089 |
A longer tenure lowers the EMI, but you pay interest for more months, so the total interest climbs quickly. Going from 20 to 30 years cuts the EMI by about ₹1,000 a month but adds almost ₹7 lakh of interest.
Why early EMIs are mostly interest
Interest is charged on the balance still outstanding, which is highest at the start. In the example above, the first year’s EMIs pay about ₹84,236 of interest and only ₹19,902 of principal. By the last year it flips: about ₹99,498 goes to principal and ₹4,640 to interest. Open the yearly breakdown in the calculator to see this for your own loan.
Before you take a loan
- Compare offers at the same tenure — a small difference in rate adds up over many years.
- Ask about processing fees, insurance and other charges; they are not part of the EMI shown here.
- Check whether the rate is fixed or floating. With a floating rate the lender may change your EMI or your tenure when rates move.
- Part-prepayments reduce the outstanding balance and therefore the interest — read your lender’s prepayment terms.