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.

All tools

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

How much are you borrowing?

₹

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

At what interest rate?

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

Over how many years?

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.

Year	Principal	Interest	Total paid	Balance
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

Popular loan EMIs

How it works

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.

Method & sources

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.

What this doesn't cover

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.

Frequently asked

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.

Related guides

Related tools

All Loans tools →

Loading…

Year

Principal

Interest

Total paid

Balance

₹46,818

₹2,23,100

₹2,69,918

₹24,53,182

₹51,210

₹2,18,708

₹2,69,918

₹24,01,973

₹56,013

₹2,13,904

₹2,69,918

₹23,45,959

₹61,268

₹2,08,650

₹2,69,918

₹22,84,691

₹67,015

₹2,02,903

₹2,69,918

₹22,17,676

₹73,302

₹1,96,616

₹2,69,918

₹21,44,375

₹80,178

₹1,89,740

₹2,69,918

₹20,64,197

₹87,699

₹1,82,219

₹2,69,918

₹19,76,498

₹95,926

₹1,73,992

₹2,69,918

₹18,80,572

₹1,04,924

₹1,64,993

₹2,69,918

₹17,75,647

₹1,14,767

₹1,55,151

₹2,69,918

₹16,60,880

₹1,25,533

₹1,44,385

₹2,69,918

₹15,35,347

₹1,37,309

₹1,32,609

₹2,69,918

₹13,98,038

₹1,50,189

₹1,19,728

₹2,69,918

₹12,47,849

₹1,64,278

₹1,05,640

₹2,69,918

₹10,83,571

₹1,79,689

₹90,229

₹2,69,918

₹9,03,882

₹1,96,545

₹73,373

₹2,69,918

₹7,07,338

₹2,14,982

₹54,936

₹2,69,918

₹4,92,356

₹2,35,149

₹34,769

₹2,69,918

₹2,57,207

₹12,711

₹2,69,918

₹0