EMI Loan Calculator

What this EMI Calculator does

An EMI (Equated Monthly Installment) calculator helps you understand how much you will need to pay every month when you take a loan such as a home loan, car loan, or personal loan. This calculator goes beyond just showing the EMI. It also tells you how much interest you will pay over time, the total amount you will repay, and how long the loan actually lasts when prepayments are made.

Many borrowers focus only on whether the EMI feels affordable today. However, two loans with the same EMI can have very different interest costs depending on tenure, interest rate, and prepayments. This calculator helps you see the complete picture before committing.

How EMI is calculated

EMI is calculated using the standard formula followed by Indian banks and NBFCs:

EMI = P × r × (1 + r)^n / ((1 + r)^n − 1)
  

Here, P is the loan amount, r is the monthly interest rate (annual rate divided by 12), and n is the total number of monthly instalments. This formula ensures that the EMI remains the same throughout the loan tenure.

Interest vs principal over time

In the initial years of a loan, a large portion of each EMI goes towards interest, while only a small portion reduces the principal. Over time, this balance gradually shifts. This calculator shows a detailed amortisation table so you can clearly see how each payment is split.

How prepayments are handled

Prepayments reduce the outstanding principal, which in turn reduces the interest charged in future months. This calculator allows you to model one-time, monthly, or yearly prepayments and choose whether they reduce your EMI or shorten your loan tenure.

All prepayments are applied only from the selected month and year, making the calculation realistic and calendar-accurate.

Why this matters

Many online EMI calculators oversimplify interest calculations or ignore prepayment timing. This calculator follows bank-grade methodology so you can make confident borrowing decisions.