How to Use
Enter the principal loan amount, annual interest rate (%), and tenure in months.
Use EMI Calculator for standard EMI, Find Loan Amount if you know your EMI budget, or Flat vs Reducing to compare methods.
See monthly EMI, total interest payable, total amount paid, and a month-by-month amortisation schedule.
Frequently Asked Questions
EMI = P × r × (1+r)ⁿ / ((1+r)ⁿ − 1)
Where P = principal, r = monthly rate (annual% ÷ 12 ÷ 100), n = total months.
Example: ₹5,00,000 at 8.5% for 60 months → r = 0.085/12 = 0.007083 → EMI ≈ ₹10,254
Flat rate: Interest calculated on full original principal every month. Total interest = P × r × n (flat). Higher effective cost.
Reducing balance: Interest calculated on outstanding principal. As you repay, interest reduces each month. Used by all banks for standard loans.
A 10% flat rate is approximately equivalent to ~18–19% reducing balance rate.
Prepayment reduces outstanding principal, which reduces future interest. Banks typically reduce tenure (keeping EMI same) — this saves significantly more than reducing EMI. Even one extra EMI per year can cut tenure by 3–4 years on a 20-year home loan.
A table showing each month's EMI split into principal and interest components. Early in the loan, most of the EMI goes toward interest. Over time, the principal component increases as outstanding balance reduces.
SSC and IBPS questions use simple instalment formula: each instalment = (P + SI) / n for flat rate. For compound interest instalments, use the present value formula. Always check whether the question specifies simple or compound interest.