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EMI Calculator

Loan EMI + amortization schedule

Reviewed by the PaisaTools Editorial Team · Last reviewed September 2026

How to use: Enter the loan amount, its interest rate, and how many years you'll take to repay.

Example₹25 lakh at 9% for 20 years → about ₹22,493/month

₹

Home ₹20L – ₹2Cr · Personal ₹50K – ₹15L · Credit card ₹5K – ₹2L

%

Home ~8–10%, personal ~11–18%, credit card ~24–36%

yr

Home up to 30y · Personal 1–5y · Credit card EMI 3–24 months

Monthly EMI

₹22,493

Total interest

₹28,98,356

Total payment

₹53,98,356

Principal vs Interest

  • Principal₹25,00,00046%
  • Interest₹28,98,35654%

Amortization schedule (yearly)

Early years are mostly interest; principal repayment accelerates later.

YearPrincipalInterestTotal paidBalance
1₹46,818₹2,23,100₹2,69,918₹24,53,182
2₹51,210₹2,18,708₹2,69,918₹24,01,973
3₹56,013₹2,13,904₹2,69,918₹23,45,959
4₹61,268₹2,08,650₹2,69,918₹22,84,691
5₹67,015₹2,02,903₹2,69,918₹22,17,676
6₹73,302₹1,96,616₹2,69,918₹21,44,375
7₹80,178₹1,89,740₹2,69,918₹20,64,197
8₹87,699₹1,82,219₹2,69,918₹19,76,498
9₹95,926₹1,73,992₹2,69,918₹18,80,572
10₹1,04,924₹1,64,993₹2,69,918₹17,75,647
11₹1,14,767₹1,55,151₹2,69,918₹16,60,880
12₹1,25,533₹1,44,385₹2,69,918₹15,35,347
13₹1,37,309₹1,32,609₹2,69,918₹13,98,038
14₹1,50,189₹1,19,728₹2,69,918₹12,47,849
15₹1,64,278₹1,05,640₹2,69,918₹10,83,571
16₹1,79,689₹90,229₹2,69,918₹9,03,882
17₹1,96,545₹73,373₹2,69,918₹7,07,338
18₹2,14,982₹54,936₹2,69,918₹4,92,356
19₹2,35,149₹34,769₹2,69,918₹2,57,207
20₹2,57,207₹12,711₹2,69,918₹0

Worked example: a ₹30 lakh home loan at 8.5%

An EMI stays the same every month, but what it pays for does not. Early on almost all of it is interest; the principal portion only becomes large in the later years. That is why tenure matters far more to the total cost than the EMI suggests.

  1. Loan amount

    ₹30,00,000

  2. Interest rate

    0.7083% a month on the outstanding balance

    8.5% a year

  3. Tenure

    240 monthly instalments

    20 years

  4. = EMI

    ₹26,035

  5. Interest inside the first EMI

    Month 1: balance × monthly rate

    ₹21,250

  6. Principal repaid by the first EMI

    ₹4,785

  7. Total interest over 20 years

    ₹32,48,327

  8. Same loan stretched to 30 years: EMI

    ₹23,067

  9. Same loan stretched to 30 years: total interest

    ₹53,04,266

Stretching the tenure by ten years lowers the EMI by ₹2,967 a month and adds ₹20,55,938 in interest. A longer tenure is a cash-flow tool, not a saving — and prepaying early, while most of each EMI is interest, removes the most future interest per rupee.

EMI for every ₹1 lakh borrowed

A quick way to size any loan: find the rate and tenure, then multiply the figure by the number of lakhs you are borrowing. A ₹25 lakh loan is 25 times the figure in the cell.

Rate1 yr3 yrs5 yrs10 yrs15 yrs20 yrs25 yrs30 yrs
8%₹8,699₹3,134₹2,028₹1,213₹956₹836₹772₹734
8.5%₹8,722₹3,157₹2,052₹1,240₹985₹868₹805₹769
9%₹8,745₹3,180₹2,076₹1,267₹1,014₹900₹839₹805
9.5%₹8,768₹3,203₹2,100₹1,294₹1,044₹932₹874₹841
10%₹8,792₹3,227₹2,125₹1,322₹1,075₹965₹909₹878
11%₹8,838₹3,274₹2,174₹1,378₹1,137₹1,032₹980₹952
12%₹8,885₹3,321₹2,224₹1,435₹1,200₹1,101₹1,053₹1,029
14%₹8,979₹3,418₹2,327₹1,553₹1,332₹1,244₹1,204₹1,185
16%₹9,073₹3,516₹2,432₹1,675₹1,469₹1,391₹1,359₹1,345
18%₹9,168₹3,615₹2,539₹1,802₹1,610₹1,543₹1,517₹1,507

Reducing-balance EMI, the method Indian banks and NBFCs use. Actual EMIs can differ slightly by rounding, the disbursal date and any processing fee added to the loan.

EMI works on a reducing-balance system. Each month, the bank charges interest on the outstanding principal; the remainder of your EMI chips away at the principal. Early in the tenure most of the EMI is interest; late in the tenure most of it is principal.

The donut chart shows the lifetime split between principal repaid and interest paid. The bars show year-by-year — notice how the blue (principal) grows while the amber (interest) shrinks each year.

A common rule of thumb: keep total EMIs under 40% of monthly take-home to stay financially comfortable.

Uses the reducing-balance EMI formula — EMI = P × i × (1+i)^n / ((1+i)^n − 1), where i is the monthly rate and n the number of months — the method mandated for Indian banks and NBFCs. Your bank's EMI may differ marginally by rounding and disbursal date.

  • Excludes processing fees, insurance and GST on charges.
  • Assumes a fixed rate — floating rates change your EMI or tenure.
  • Part-prepayment is only modelled if you use that option.
What is EMI?
Equated Monthly Installment — a fixed monthly payment that includes both principal and interest, designed so the loan is fully repaid by the end of the tenure.
How is EMI calculated?
Using the reducing-balance formula: EMI = P × r × (1 + r)^n / ((1 + r)^n − 1), where P is the loan amount, r is the monthly rate, and n is total months.
Why does a longer tenure mean more interest?
Each EMI pays a tiny slice of principal early on — most of it is interest. Stretch the tenure and you pay interest on a larger remaining balance for more months.
Should I prepay my loan?
Usually yes, if the loan rate is meaningfully above what you can earn elsewhere after tax. Even one extra EMI a year can knock months off the tenure.
Is the EMI fixed for the entire tenure?
For a fixed-rate loan, yes. For floating-rate loans, your EMI (or tenure) adjusts when the lender's reference rate changes.

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