Use this EMI calculator to estimate a loan’s monthly payment, total interest and repayment schedule. Enter the amount you plan to borrow, the annual interest rate and the tenure, then choose monthly reducing balance or flat rate to match your lender’s quote.
The calculator keeps the rate unchanged throughout the loan and assumes equal monthly payments, with the first payment one month after disbursement. It does not model fees, prepayments, moratoriums or future floating-rate resets. The currency selector changes the display only; it does not convert money.
How to use the EMI calculator
- Enter the loan amount. Use the principal on which interest will be charged. You can type the amount with commas or use the slider.
- Enter the quoted annual interest rate. For example, enter 9 for 9% per year. Select the calculation method stated in the loan offer. A flat rate and a reducing-balance rate are different measures.
- Choose the repayment term. Use Months for an exact term such as 18 or 84 months. Years can accept decimals, with the term rounded to the nearest whole month. Switching units preserves that month count.
- Read the whole result. Compare monthly EMI, total interest and total repayment. Open a year in the schedule to inspect each month’s interest and principal.
The default inputs are an illustration, not a current loan offer. Change them to the figures in your own quote. An invalid or incomplete entry clears the results and shows what needs correcting.
The formula behind the estimate
For a monthly reducing-balance loan, the payment is calculated as follows:
EMI = P × r × (1 + r)n ÷ [(1 + r)n − 1]
- P is the opening principal.
- r is the monthly interest rate, calculated as the annual interest rate expressed as a percentage ÷ 1,200. A quoted 9% becomes 0.0075 per month.
- n is the number of monthly payments.
When the entered rate is zero, EMI is simply P ÷ n. This is the standard monthly-payment formula also explained in ICICI Bank’s home loan EMI calculator methodology.
For each reducing-balance payment, interest equals the month’s opening principal multiplied by r. The balance of the payment reduces principal. The next month’s interest is calculated on that lower balance. The final payment clears any small residual produced by numerical rounding.
For the flat-rate option, total interest equals P × (annual rate ÷ 100) × (n ÷ 12), and EMI equals (P + total interest) ÷ n. The flat-rate schedule allocates equal principal and equal interest across the term. It is a mathematical illustration; your lender may use a different settlement or interest-allocation method.
Worked example: ₹10 lakh at 9% for five years
Enter ₹10,00,000, 9% and 60 months. With monthly reducing balance, the estimated EMI is ₹20,758.36. The first month’s interest is ₹7,500.00, so ₹13,258.36 reduces principal and the closing balance becomes ₹9,86,741.64.
| Method | Monthly EMI | Total interest | Total repayment |
|---|---|---|---|
| Monthly reducing balance | ₹20,758.36 | ₹2,45,501.31 | ₹12,45,501.31 |
| Flat rate | ₹24,166.67 | ₹4,50,000.00 | ₹14,50,000.00 |
In this example the same quoted percentage produces different costs because flat interest continues to use the original principal. This does not mean every reducing-balance offer is cheaper than every flat-rate offer. Compare the actual rates, repayment terms and fees in each offer. A flat percentage cannot be substituted directly for a reducing-balance percentage.
What the repayment schedule tells you
Each year row totals up to 12 monthly payments. A final partial year contains only the remaining payments: an 18-month loan has a 12-month first year and a six-month second year. Select the year button to open the individual months; it also works with the keyboard.
The columns show opening balance, payment, principal repaid, interest and closing balance. A reducing-balance loan has larger interest amounts early in its schedule because more principal remains outstanding. The EMI can stay level while its principal portion grows. At 0% interest, every payment goes entirely toward principal.
The chart expresses principal and interest as shares of total payments. All displayed currency figures are rounded to two decimals, while calculations retain precision internally. Adding rounded rows can therefore differ by a few paise from a displayed total.
Compare a shorter term with a longer term
Keep the amount and rate unchanged and adjust only the number of months. For the ₹10 lakh loan at 9%, shortening the term from 60 to 36 months raises the EMI from ₹20,758.36 to ₹31,799.73. Estimated total interest falls from ₹2,45,501.31 to ₹1,44,790.38, a saving of approximately ₹1,00,711 before fees.
This comparison answers a specific question: how much additional monthly cash would be needed to repay the same amount sooner? It does not establish whether that payment is affordable for your household or business. Check existing commitments, essential spending, emergency reserves and irregular income separately. Our cash flow decision tool can help organise a business cash-flow scenario.
Why the bank’s quote may differ
- Fees and financed charges: processing fees, insurance, taxes and other charges are outside this calculator. If a charge is added to principal, use the actual financed principal when estimating the payment.
- Payment dates: this model uses equal monthly periods. Daily interest, disbursement dates and a first payment due before or after one full month can change the lender’s schedule.
- Rate resets: a floating rate can change during the term. Entering a higher rate here models that rate from the start; it does not recalculate a rate change partway through an existing loan.
- Special repayment terms: interest-only periods, moratoriums, balloon payments, missed payments and prepayments require a different schedule.
- Rounding: lenders may round each instalment or monthly interest amount differently.
Before accepting an Indian retail or MSME term-loan offer, compare the lender’s Key Facts Statement (KFS), annual percentage rate (APR) and amortisation schedule. RBI’s KFS circular describes APR as the annual cost of credit including interest and other charges, and calls for an APR computation sheet and repayment schedule. This calculator estimates principal and interest only; it does not calculate APR. See RBI’s Key Facts Statement circular dated 15 April 2024.
Questions about this calculator
Does it calculate prepayments or part payments?
No. There is no input for an extra payment or its date. Reducing the starting principal gives a different new-loan scenario; it is not a valid substitute for inserting a prepayment into an existing loan. Ask the lender for a revised schedule showing the timing, charges and effect on EMI or tenure.
Can I use it for a home loan, car loan or personal loan?
Yes, if the loan follows the constant-rate, equal-monthly-payment assumptions described here. Choose the correct interest method and compare the result with the lender’s documents. The tool does not determine eligibility or fetch lender rates.
Does changing currency convert the amount?
No. Choosing INR, USD, EUR, GBP or AED changes symbols and number formatting. The entered principal stays the same numeric amount. There is no exchange-rate calculation.
Can I enter less than one year?
Yes. Select Months and enter a whole number from 1 to 600. For example, 18 months is preserved as 1.5 years when you switch units.
Calculation note: This is an educational estimate, not a lender quote or a personalised borrowing recommendation. Formula and examples checked on 8 September 2026. For a discrepancy, include the amount, rate, tenure and selected method when using our contact page.
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The information and tools on this page are for general information only and are not legal, tax, accounting or financial advice. For advice on your own situation, contact us.