This EMI Calculator estimates the monthly Equated Monthly Instalment for a reducing-balance loan. Enter the loan amount, annual interest rate and tenure to estimate the monthly payment, total repayment and total interest. The calculation is illustrative; a lender’s actual repayment schedule may differ.
How to use the EMI Calculator
- Enter the loan principal in rupees.
- Enter the annual interest rate as a percentage.
- Enter the tenure in years. The calculator converts the tenure into monthly instalments, rounded to the nearest whole month.
- Select Calculate to see the estimated EMI and repayment breakdown.
EMI formula explained
For a positive monthly interest rate, the reducing-balance EMI formula is:
EMI = P × r × (1 + r)n ÷ [(1 + r)n − 1]
Here, P is the principal, r is the annual interest rate divided by 12 and then by 100, and n is the number of monthly instalments. When the interest rate is zero, the payment is principal divided by the number of instalments.
Worked example
For a loan of ₹10,00,000 at an assumed annual interest rate of 9% over 20 years (240 monthly instalments), the estimated EMI is approximately ₹8,997.26. Total repayment is approximately ₹21,59,342.29, including approximately ₹11,59,342.29 in interest. Figures are rounded and are provided only to demonstrate the formula.
What this estimate does not include
The calculator assumes a constant annual rate, monthly payments and a standard reducing-balance calculation. It does not add processing fees, insurance, taxes, penalties, rate resets, prepayments or lender-specific rounding rules. Actual offers and amortisation schedules may differ.
Frequently asked questions
Does a lower interest rate reduce EMI?
All else equal, a lower rate reduces the estimated EMI and total interest.
Does a longer tenure reduce the monthly EMI?
Usually yes, but it can increase the total interest paid because the loan remains outstanding for longer.
Can I calculate a zero-interest loan?
Yes. The calculator divides the principal by the number of monthly instalments.
Financial information: This tool is for general educational estimates, not a loan offer or financial advice. Confirm the final schedule, fees and terms directly with your lender.