This free EMI calculator computes your monthly instalment using the standard reducing balance method. Select your loan type, enter principal, rate and tenure — get instant EMI, total interest, and a complete amortization breakdown.
Loan Type
% p.a.
Years
Monthly EMI
per month
Total Interest
total cost of credit
Total Payment
principal + interest
Principal Amount
Loan Tenure
Interest Rate
Interest-to-Principal Ratio
PrincipalInterest
—%—%
YearOpening BalancePrincipal PaidInterest PaidClosing Balance

What is EMI and How is it Calculated?

An Equated Monthly Instalment (EMI) is the fixed amount paid by a borrower to a lender on a specified date each month. EMIs are calculated using the reducing balance method — as you pay off principal, interest charges decrease over time.

The formula is: EMI = P × r × (1+r)ⁿ / ((1+r)ⁿ − 1) where P = principal, r = monthly interest rate (annual rate ÷ 12 ÷ 100), n = total number of months.

For a ₹10,00,000 home loan at 8.5% for 20 years: monthly rate = 8.5/12/100 = 0.00708, n = 240. EMI = ₹8,678 approximately.