How to calculate a loan EMI
Enter the loan amount, the annual interest rate your lender offers, and the tenure in years. The EMI, total interest, and total repayment update instantly. Expand the amortization schedule to see exactly how each month's payment splits between principal and interest, and how the outstanding balance shrinks over time.
This is useful before you commit to a loan — comparing two lenders' offers isn't just about the headline rate, since a longer tenure at a lower rate can still cost more total interest than a shorter tenure at a slightly higher rate. It's also useful mid-loan, to see how much of a payment right now is actually going toward the principal versus the bank's interest, which is rarely obvious from a bank statement alone. The calculator assumes a standard reducing-balance loan with a fixed rate and no prepayments, which covers how most home, car, and personal loans in India are actually structured.
How is EMI calculated?
EMI is calculated using the loan amount, monthly interest rate, and number of months, via the standard reducing-balance formula: EMI = P × r × (1+r)^n / ((1+r)^n − 1), where P is the loan amount, r is the monthly interest rate, and n is the number of months.
Does EMI stay the same every month for the whole loan?
For a standard fixed-rate loan, yes — the EMI amount stays constant, but the split between interest and principal within it changes over time. Early payments are mostly interest; later payments are mostly principal, since interest is charged on the outstanding balance, which shrinks as you pay it down.
What's the difference between flat rate and reducing balance interest?
Reducing balance interest (used by almost all home, car, and personal loans in India) charges interest only on the outstanding principal, which drops every month. Flat rate interest charges interest on the full original amount for the entire tenure, which works out significantly more expensive for the same quoted rate. This calculator assumes reducing balance, the standard method.
Can I see how much total interest I'll pay?
Yes — the result shows total interest payable over the full tenure, alongside the total amount you'll repay. The amortization schedule breaks this down month by month if you want the detail.
Is my loan information stored or uploaded anywhere?
No — every calculation runs locally in your browser using plain JavaScript. Nothing you enter is sent anywhere or saved once you leave the page.