Calculate the monthly EMI, total interest, and total payment for a loan at a fixed interest rate - for home, car, or personal loans using the standard reducing-balance formula.
How this calculator works
An EMI (Equated Monthly Instalment) is a fixed monthly payment that covers both interest and a portion of the principal, calculated so the loan is fully repaid by the end of its tenure. Almost all Indian home, car, and personal loans use "reducing balance" interest - meaning interest is charged only on what you still owe, not the original loan amount.
The formula is EMI = P × r × (1+r)^n / ((1+r)^n − 1), where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the tenure in months.
Because interest is charged on the outstanding balance, early EMIs are mostly interest and later ones are mostly principal - even though the EMI amount itself stays constant for the whole tenure (on a fixed-rate loan).
Frequently asked questions
Does prepaying a loan reduce my EMI?
It depends on your lender. Most keep the EMI the same and shorten the tenure instead, since that saves more interest overall - but some let you choose to reduce the EMI. Check your loan agreement or ask your lender.
Why is most of my early EMI interest, not principal?
Interest is charged on the outstanding balance, which is highest early in the loan. As the principal shrinks, the interest portion of each EMI shrinks too, and the principal portion grows - even though the total EMI stays constant.
Does this include processing fees or insurance?
No - this calculates EMI from the loan amount, rate, and tenure only. Processing fees, insurance premiums, and other charges some lenders add will increase your actual cost of borrowing beyond what's shown here.
This calculator performs fixed, transparent arithmetic on the numbers you enter - the formula is shown alongside the result. It does not include processing fees, insurance, or other lender-specific charges, and assumes a fixed interest rate for the full tenure. This is not financial advice - always confirm the exact EMI and charges with your lender before taking a loan.