What is a EMI Calculator?
An EMI (Equated Monthly Instalment) is the fixed monthly payment that fully repays a loan, principal plus interest, over its tenure. Early instalments are weighted heavily toward interest, and later ones toward principal, even though the payment amount itself never changes — this is what "reducing balance" repayment means.
Enter the loan amount, interest rate and tenure to see your EMI, total interest payable, and a full month-by-month schedule of how the balance runs down.
How the EMI is calculated
P is the loan principal, r is the monthly interest rate (annual rate ÷ 12), and n is the tenure in months. This is the standard reducing-balance formula used by every Indian bank and NBFC.
Frequently asked questions
Why does most of my early EMI go toward interest?
Interest each month is charged on the outstanding balance, which is highest at the start. As the balance shrinks, less of each EMI goes to interest and more to principal — the split changes every month even though the EMI itself is constant.
What’s the difference between flat rate and reducing rate?
This calculator (and virtually every bank loan) uses reducing balance, where interest is charged only on the outstanding amount. A flat rate charges interest on the full original principal throughout — see the Flat vs Reducing Rate Calculator to compare the two.
Does prepaying reduce my EMI or my tenure?
Depends on what you (or your lender’s default policy) choose — most lenders let you pick between a lower EMI at the same tenure, or the same EMI for a shorter tenure. Reducing tenure while keeping EMI the same generally saves more total interest.