About this calculator
The EMI is the fixed amount you pay every month. Early on most of it is interest and only a little reduces what you owe. Later the balance flips.
Enter the loan amount, the yearly rate and the tenure. The chart shows how each year splits between principal and interest.
How it is calculated
- Monthly rate = yearly rate ÷ 12.
- EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan, r the monthly rate and n the number of months.
- Each month: interest = balance × r, principal = EMI − interest.
Assumptions. Rate stays the same for the whole tenure and interest is charged monthly on the opening balance. Floating-rate loans change when your lender resets the rate.
Questions
What happens if my rate changes?
On a floating-rate loan your lender changes either the EMI or the tenure when the rate resets. Re-run this with the new rate and your remaining balance.
Does a longer tenure save money?
It lowers the EMI but raises total interest. Try 15 and 25 years to see the gap.
Is this exact?
It is a standard formula using the numbers you enter. Your bank, fund or lender may round differently or use different dates, so treat it as a close estimate and check the final figure with them.