💳 EMI Calculator
Calculate your Equated Monthly Installment (EMI) for home loans, car loans and personal loans instantly.
📊 Yearly Breakdown
| Year | Principal Paid | Interest Paid | Remaining Balance |
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About EMI Calculator
EMI (Equated Monthly Installment) is the fixed amount you pay each month towards your loan, covering both principal and interest. This calculator uses the standard reducing balance method used by banks worldwide.
EMI Formula
EMI = P × r × (1+r)^n / ((1+r)^n - 1)
Where P = Principal loan amount, r = monthly interest rate (annual rate / 12 / 100), n = number of monthly installments
Frequently Asked Questions
What's the difference between flat rate and reducing balance?
This calculator uses reducing balance method (standard for most loans), where interest is calculated on the outstanding principal each month, not the original amount.
Can I use this for car loans and personal loans too?
Yes! This calculator works for any type of loan — home, car, personal, business — just enter the relevant amount, rate and tenure.
Why does my EMI stay the same but the interest portion drops over time?
Because interest is charged on the remaining balance, not the original loan amount. Early payments are mostly interest since the balance is still high; as the principal shrinks, more of each fixed EMI goes toward paying it down. This is why paying extra toward the principal early in a loan saves more total interest than paying the same extra amount later.
How does loan tenure affect my total interest paid?
A longer tenure lowers your monthly EMI but increases the total interest paid over the life of the loan, since you're borrowing the money for longer. A shorter tenure raises the EMI but reduces total interest — it's a tradeoff between monthly affordability and total cost.