EMI Calculator
Calculate loan EMI with visual principal vs interest breakdown and yearly amortization
How Does It Work?
Free loan EMI calculator for home loans, car loans, and personal loans. Features interactive monthly breakdown, interest vs principal distribution bar, and full amortization schedule.
Where P is principal loan amount, r is periodic monthly interest rate (annual rate / 12 / 100), and n is tenure in months.
Real-World Worked Example
Suppose you take a ₹50,00,000 home loan from a commercial bank at an annual interest rate of 8.5% over a 20-year tenure (240 months).
- •Monthly Periodic Interest Rate: 8.5% / 12 = 0.7083% (r = 0.00708333)
- •Computed Monthly EMI: ₹43,391
- •Total Lifetime Repayment (240 payments): ₹1,04,13,878
- •Total Interest Paid to Bank: ₹54,13,878 (exceeds original borrowing by ₹4.13L)
- •Month 1 Payment Split: ₹35,417 goes toward Interest (82%) vs only ₹7,974 toward Principal (18%)
Takeaway: Because interest dominates early repayments, making a modest annual principal prepayment of ₹50,000 can reduce your total interest by over ₹8,00,000 and shave nearly 3 years off your loan tenure.
Related Guides & Calculation Deep Dives
All guidesShould You Prepay Your Home Loan? A Worked Example
Making early principal prepayments on a long-term home loan dramatically cuts compound interest. On a ₹40,00,000 loan at 8.75% for 20 years, a single lump-sum prepayment of ₹3,00,000 at the end of Year 3 saves ₹7,46,218 in interest and closes your mortgage 31 months early.
How EMI Is Calculated: Formula and Worked Example
An Equated Monthly Installment (EMI) is calculated using a reducing-balance formula: EMI = [P × r × (1 + r)^n] / [(1 + r)^n - 1]. On a ₹10,00,000 loan at 9% for 5 years, your monthly EMI is exactly ₹20,758, with early payments heavily weighted toward interest charges.
How to Reduce Your Home Loan EMI (7 Practical Ways)
To reduce your home loan EMI burden, you can make partial principal prepayments, pay 1 extra EMI annually, implement a 5% annual step-up payment, use a home loan overdraft account, renegotiate your lending spread, transfer your loan balance, or extend tenure.
Loan EMI FAQs
Common questions, calculation formulas, and usage rules.
An Equated Monthly Installment (EMI) is a fixed payment amount made by a borrower to a lender each calendar month.
In reducing-balance loans, interest is calculated each month on the outstanding principal balance.