Loan EMI Calculator
Calculate your exact monthly loan repayment, interest payout, and amortization schedule instantly.
How this calculation works
EMI (Equated Monthly Installment) is computed using the global standard reducing balance formula: E = [P × r × (1+r)ⁿ] ÷ [(1+r)ⁿ − 1]. Each monthly payment consists of both principal repayment and interest on the remaining outstanding balance. In earlier years, interest constitutes the larger fraction of your EMI; as principal reduces over time, interest declines and principal reduction accelerates.
Reference Loan Scenario
Crawlable ExampleApplying the reducing-balance formula yields a monthly EMI of ₹8,678. Over 240 installments, total repayment equals ₹20,82,776, comprising ₹10,00,000 principal and ₹10,82,776 interest.
Frequently Asked Questions
Does prepaying loan principal reduce my EMI or loan tenure?▼
Lenders typically keep your monthly EMI constant and reduce the total loan tenure. However, you can instruct your lender to re-amortize the loan to lower your monthly installment instead.
What is the difference between flat interest and reducing balance interest?▼
A flat interest rate computes interest on the entire original principal for the entire loan duration, resulting in nearly double the effective interest rate of a reducing balance loan with the same nominal percentage.