EMI Calculator
Estimate your monthly repayment, total interest and outstanding loan balance.
Outstanding loan balance
The balance falls as principal is repaid. Processing fees are shown separately from loan interest.
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What does an EMI include?
An equated monthly instalment combines interest on the outstanding loan and a repayment of principal. On a reducing-balance loan, the interest portion usually declines over time while the principal portion rises. Comparing only the EMI can hide the cost of a longer tenure or upfront fees.
A practical example
For a Rs 5,00,000 loan at 9% a year over 60 months, the monthly EMI is about Rs 10,379.18 before fees. Monthly paise rounding can make the final instalment slightly different. A lower EMI obtained by extending the tenure is not necessarily a cheaper loan.
How the EMI calculation works
EMI = P × r ÷ [1 − (1 + r)^(−n)]P is the principal, r is the annual nominal rate divided by 1,200, and n is the number of months. At zero interest, EMI = P ÷ n. The schedule rounds payments and monthly interest to paise, applies prepayments after the EMI, and adjusts the final instalment to clear the balance. It assumes a constant rate, monthly intervals and no moratorium. Daily accrual, disbursement timing and lender rounding can cause differences.
Fees and the effective annual rate
The effective annual rate discounts baseline instalments against the principal less upfront fees, then annualizes the monthly result by compounding. It excludes prepayments because those are optional future cash flows. Compare the result with your lender's Key Facts Statement, which should disclose the applicable annual percentage rate, fees and repayment terms.
EMI Calculator: Frequently Asked Questions
What is a loan EMI calculator?
An EMI calculator estimates the regular monthly payment on a loan using the principal, annual interest rate and repayment term. This tool uses a monthly reducing-balance model and separates principal repayment from interest.
What is the EMI on a Rs 5 lakh loan for five years?
At a constant 9% annual nominal rate over 60 months, the EMI is approximately Rs 10,379.18 before fees. A different interest rate changes the payment, and the final installment can vary slightly because of rounding.
How does loan tenure affect EMI and total interest?
At the same principal and a positive rate, a longer tenure generally lowers each EMI but increases total interest. A shorter term usually means higher monthly payments and a lower lifetime interest cost.
What is a loan amortization schedule?
It is a period-by-period breakdown of the opening balance, interest, principal paid and closing balance. With a constant EMI and positive rate, more of the early payments goes toward interest than the later payments.
Is reducing-balance interest the same as flat interest?
No. Reducing-balance interest applies to the remaining principal, while flat interest is calculated on the original principal throughout the term. The same quoted percentage does not produce the same borrowing cost.
More questions (5)
Does an EMI estimate include processing fees?
The scheduled EMI is based on the loan principal and rate. Upfront fees are accounted for separately when entered in Advanced. If a lender adds fees to the financed balance, include them in principal and avoid counting them again.
Can this calculator predict loan eligibility?
No. A payment estimate does not establish approval, creditworthiness or the rate a lender will offer. Eligibility depends on income, existing obligations, credit history and lender criteria.
Does EMI change when I make a prepayment?
It depends on the option agreed with your lender. Keeping the EMI unchanged usually shortens the remaining term. Keeping the term unchanged lowers future EMIs. The calculator models both choices and applies extra payments after the scheduled EMI.
Can I use a zero interest rate?
Yes. At 0%, principal is divided by the number of months. Any upfront charges still increase the total cost and the fee-inclusive effective annual rate.
Is the effective annual rate the same as the quoted rate?
No. The quoted input is a nominal annual rate divided by 12. The effective annual figure compounds the implied monthly cash-flow rate and includes your upfront fees. It is an estimate, not the APR in a lender-issued Key Facts Statement.