EMI Calculator
Work out the equated monthly instalment on any loan, see how much of each payment goes to interest versus principal, and read the year-by-year balance.
How it works
An EMI is a fixed payment made every period for the life of the loan. Each payment covers the interest that accrued since the last one, and whatever is left reduces the balance. Because the balance falls, the interest portion shrinks and the principal portion grows — which is why the early years of a long loan barely move the balance.
The calculator builds the whole schedule row by row rather than approximating, so the totals shown are the sum of real payments. Lenders may round each instalment slightly differently, so treat the final figure as accurate to within a rounding step.
The formula
Equated monthly instalment
EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)
P is the principal, r the monthly rate (annual ÷ 12 ÷ 100), n the number of months.
Interest in a given month
interest = outstanding balance × r
Total interest
total interest = (EMI × n) − P
Worked examples
| Scenario | Working | Result |
|---|---|---|
| 25,000 over 5 years at 9% | r = 0.0075, n = 60 | 518.96 per month · 6,137 total interest |
| Same loan over 7 years instead | r = 0.0075, n = 84 | 402.16 per month · 8,782 total interest |
| A 0% interest instalment plan | P ÷ n when r = 0 | The principal split evenly, no interest |
When you'd use it
- Comparing a shorter term against a lower monthly payment
- Seeing how much of the first year's payments is pure interest
- Checking a lender's quoted instalment against the maths
- Working out what you can afford before applying
Common questions
Why does a longer loan cost so much more in interest?
Interest is charged on the outstanding balance every month. Stretching the term keeps the balance high for longer, so even at the same rate you pay interest many more times. Extending a 5-year loan to 7 years lowers the monthly payment but raises total interest by roughly 40% in the example above.
Does this include fees, insurance or taxes?
No. It calculates principal and interest only. Processing fees, insurance and property taxes are separate and vary by lender, so add them yourself when comparing offers.
What is the difference between a flat rate and a reducing-balance rate?
This calculator uses the reducing-balance method, where interest applies to what you still owe. A flat rate charges interest on the original amount for the whole term, which works out considerably more expensive for the same headline percentage.
Can I use this for a mortgage?
Yes — the maths is identical for any equal-instalment loan. Bear in mind that variable-rate mortgages re-price over time, so the schedule holds only while the rate does.