| Year | Principal paid | Interest paid | Total paid | Balance |
|---|
How is EMI calculated?
EMI = [P × R × (1+R)^N] / [(1+R)^N – 1], where P is the principal loan amount, R is the monthly interest rate (annual rate ÷ 12 ÷ 100), and N is the number of monthly instalments. For example, a ₹5 lakh home loan at 8.5% for 20 years gives a monthly EMI of approximately ₹4,347.
What is an amortisation schedule?
An amortisation schedule is a complete table of periodic loan payments showing how much goes toward principal and how much toward interest each month. In the early years of a loan, most of the EMI pays interest. As the loan matures, more goes toward principal — this is called front-loading of interest.
How can I reduce my EMI?
Three ways: (1) Make a larger down payment to reduce the principal. (2) Choose a longer tenure — this lowers EMI but increases total interest paid. (3) Negotiate a lower interest rate or refinance when rates drop. Making part-prepayments during the loan also reduces future EMIs or shortens the tenure.
What is the difference between flat rate and reducing balance EMI?
In a flat rate loan, interest is calculated on the full original principal throughout the tenure. In a reducing balance loan (used by all major Indian banks), interest is calculated on the outstanding principal after each EMI payment — making the effective cost much lower. Our calculator uses the reducing balance method.
About this EMI calculator
This free EMI calculator helps you calculate the Equated Monthly Instalment (EMI) for any loan — home loan, car loan, personal loan, or business loan. Enter your loan amount, interest rate, and tenure to instantly get your monthly EMI, total interest payable, and total amount paid over the loan period.
The calculator also generates a full year-by-year amortisation schedule showing exactly how much of each year's payments goes toward principal repayment and how much is interest. This helps you plan prepayments strategically — making even one extra EMI payment per year can significantly reduce your total interest burden.
All calculations use the standard reducing balance method — the same formula used by SBI, HDFC, ICICI, Axis Bank, and all major Indian lenders. Updated for FY 2025-26 current interest rates.
How to use this calculator
- Select your loan type (home, car, or personal) to load typical rates
- Adjust the loan amount using the slider or type directly
- Set your interest rate — check your bank's current rate
- Choose the tenure in years — longer tenure = lower EMI but more total interest
- Your monthly EMI, total interest, and amortisation table update instantly