EMI Calculator — Calculate Loan EMI Instantly

An EMI (Equated Monthly Instalment) calculator computes your fixed monthly loan payment based on the principal amount, interest rate, and tenure. It also shows total interest payable and the full amortization schedule, helping you understand the true cost of any loan before you commit.

EMI is calculated using the reducing balance formula: EMI = P × r × (1+r)ⁿ / ((1+r)ⁿ − 1), where P is the principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the number of months. The key insight: interest is charged only on the outstanding balance each month, so you pay less interest over time as the principal reduces.

Example: A $600,000 home loan at 7% over 25 years gives you a monthly EMI of approximately $4,241. Over 25 years, you'll pay about $672,300 in interest — more than the loan itself. Use this calculator to try different rate and tenure combinations to find the most affordable repayment plan for your budget.

An amortization schedule is a month-by-month table showing how each payment splits between principal and interest. In the early months, most of your EMI goes to interest. As the balance decreases, a larger share goes to principal. This schedule is useful for planning extra payments: making a lump-sum payment in the first few years saves far more interest than the same payment later.

Four effective strategies: (1) Increase your down payment — a larger upfront payment reduces the principal and total interest. (2) Choose a shorter tenure — monthly EMI goes up but total interest paid drops significantly. (3) Make extra monthly payments — use the Extra Payment toggle to see how $200–$500/month can cut years off your loan. (4) Lump-sum prepayments — add a prepayment at month 12 or 24 to see the impact on your schedule.

Flat rate: interest is calculated on the full original principal for the entire tenure. Reducing balance: interest is calculated only on the outstanding balance each month. For a $100,000 loan at 10% over 3 years — flat rate gives a monthly payment of roughly $3,611 with total interest of $30,000. Reducing balance gives an EMI of ~$3,227 with total interest of ~$16,162. Reducing balance is almost always better for the borrower.

Most banks default to reducing tenure (keeping EMI the same) when you prepay, which saves significantly more interest. Reducing EMI keeps the same tenure but lowers each payment. Example: A $500,000 loan at 7% over 20 years — a $20,000 prepayment at month 12 reduces the tenure by about 18 months and saves ~$24,000 in interest if tenure is reduced, vs ~$18,000 saved if EMI is reduced.

A processing fee is a one-time charge by the lender, typically 0.5%–2% of the loan amount. It effectively increases the true cost of borrowing. If you borrow $500,000 at 7% but pay a 1% ($5,000) processing fee, your effective APR is actually ~7.27%, not 7%. This calculator shows the effective interest rate when you enable the Processing Fee option in Advanced Settings.