EMI Calculator
Work out monthly loan instalments, interest and payoff totals.
Loan Amount
Interest Rate (p.a)
Tenure (Years)
Monthly EMI
₹11,611
Monthly EMI
₹11,611
Principal Amount
₹10,00,000
Total Interest
₹3,93,302
Total Amount
₹13,93,302
How this calculator works
EMI uses the standard amortizing-loan formula: EMI = P × r × (1+r)ⁿ ÷ [(1+r)ⁿ − 1], where P is your loan amount, r is the monthly interest rate, and n is the number of monthly instalments. Every payment blends principal and interest — early payments are mostly interest, later ones are mostly principal, even though the EMI itself stays fixed for the whole tenure.
Worked example
A ₹10,00,000 personal loan at 7% annual interest over 10 years works out to a monthly rate of 7/12/100 ≈ 0.00583, and 120 monthly instalments. Plugging into the formula gives an EMI of roughly ₹11,611/month — a total repayment of about ₹13,93,302, of which ₹3,93,302 is interest.
Why interest is front-loaded
In the first EMI on that example loan, roughly ₹5,833 of the ₹11,611 payment is interest (7% annual on the full ₹10,00,000 outstanding, prorated monthly), and only about ₹5,778 actually reduces the principal. As the outstanding balance shrinks each month, the interest portion of every subsequent EMI shrinks too, and more of the fixed payment goes toward principal — which is exactly why paying even a little extra early in a loan saves disproportionately more interest than paying the same extra amount later.
Tenure is a trade-off, not a free lever
Stretching a loan from 10 to 20 years roughly halves the EMI, but doesn't roughly halve the total interest — it usually increases it substantially, since interest keeps accruing on a slowly-shrinking balance for twice as long. Use the donut chart above to see exactly how much of your specific loan's total repayment is principal versus interest at your chosen tenure.
If you can pay extra
Any lump sum or extra payment toward principal reduces the balance interest is calculated on for every remaining instalment. See the Loan Prepayment Calculator to model exactly how much a prepayment would save on your specific loan.
Frequently Asked Questions
How is EMI calculated?
EMI (Equated Monthly Instalment) is calculated from the loan amount, annual interest rate and tenure using the standard reducing-balance formula banks use: EMI = P × r × (1+r)ⁿ / ((1+r)ⁿ − 1), where P is principal, r is the monthly interest rate, and n is the number of instalments.
Why does my total interest paid seem high?
Interest is front-loaded on reducing-balance loans — early instalments pay mostly interest and only a small amount of principal, with that ratio flipping over the loan term. Longer tenures lower the monthly EMI but increase total interest paid.
Does a longer tenure always mean paying more interest?
Yes, all else equal — extending the tenure lowers your monthly EMI but increases the total interest paid over the life of the loan, since interest accrues for longer on the outstanding balance.
How much of my first EMI actually goes toward principal?
Less than you'd expect — on a typical long-tenure loan, roughly half of the very first instalment can be interest, since it's calculated on the full outstanding balance. That ratio flips gradually over the loan term as the balance shrinks, which is why paying extra early saves more interest than paying extra later.
Does prepaying a loan actually help?
Yes — any extra payment toward principal reduces the balance interest is calculated on for every remaining instalment. The Loan Prepayment Calculator can show exactly how much a specific prepayment would save on your loan.
This tool provides general estimates for informational purposes only and isn't financial or tax advice. Consult a qualified financial advisor or tax professional before making financial decisions.