EMI Calculator
The monthly instalment on a loan, and — just as important — how much of the total payment is interest rather than principal.
EMI calculator
Monthly loan instalment from the standard reducing-balance formula, plus the full year-by-year amortization schedule showing how the principal/interest split shifts over the loan’s life.
| Year | Opening balance | Principal paid | Interest paid | Closing balance |
|---|---|---|---|---|
| 1 | ₹10,00,000 | ₹1,62,268 | ₹92,696 | ₹8,37,732 |
| 2 | ₹8,37,732 | ₹1,79,260 | ₹75,705 | ₹6,58,472 |
| 3 | ₹6,58,472 | ₹1,98,031 | ₹56,934 | ₹4,60,442 |
| 4 | ₹4,60,442 | ₹2,18,767 | ₹36,198 | ₹2,41,675 |
| 5 | ₹2,41,675 | ₹2,41,675 | ₹13,290 | ₹0 |
Educational illustration only. Assumes a fixed interest rate and equal monthly instalments (reducing balance method) — a real loan may add processing fees, insurance, or a floating rate that changes the actual outgo. Notice how the interest share of each payment falls every year as the balance reduces.
The formula
For a loan with monthly reducing-balance interest:
EMI = P × r × (1 + r)ⁿ / ((1 + r)ⁿ − 1)Where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the number of monthly instalments. Each EMI is the same fixed amount, but the split between interest and principal within it changes every month — interest is highest in the first instalment (calculated on the full outstanding balance) and falls steadily as the balance reduces.
Why total interest can exceed the loan amount
On a long tenure at a meaningful interest rate, total interest paid can be a substantial fraction of — or even exceed — the original loan amount. A longer tenure lowers the monthly EMI but increases total interest paid over the life of the loan; a shorter tenure does the opposite. There’s no single “right” tenure — it’s a trade-off between monthly affordability and total cost.
This calculator is a general-purpose educational tool and not a loan offer or financial advice — actual loan terms, fees and eligibility are set by individual lenders.
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