EMI Calculator
Plan your finances with clarity. Calculate your Equated Monthly Installment (EMI) for any loan and see the exact breakdown of principal and interest.
Loan Parameters
Monthly EMI
Total Payable
Amortization Schedule (First 12 Months)
| Month | Principal | Interest | Balance |
|---|
The Anatomy of an EMI
An Equated Monthly Installment (EMI) is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. EMIs are applied to both interest and principal each month, so that over a specified number of years, the loan is paid off in full.
How Your EMI is Calculated
The standard formula for calculation is:
Where P is the principal amount, r is the monthly interest rate, and n is the tenure in months. Monthly payments are front-loaded with interest, meaning you pay more interest in the early years of your loan than at the end.
Pro Tip: Prepayments
Even small prepayments in the first 2-3 years of a long-term loan (like a mortgage) can significantly reduce your total interest burden and shorten your loan tenure by years.