What this calculation tells you
An EMI is a fixed instalment in a standard reducing-balance loan. Each payment covers that month’s interest and pays down some principal. In the early months, a larger share usually goes toward interest because the balance is higher.
Use the monthly figure to understand the payment, then look at total interest to understand the financing cost. The downloadable schedule separates principal, interest and the remaining balance for every month. It uses a constant rate and does not represent a lender’s offer.
The method, explained
EMI = P × r ÷ [1 − (1 + r)^(−n)] r = annual interest rate ÷ 1,200; n = number of monthly payments
The inputs use the units printed beside each field. Values shown in result cards are rounded for readability; the calculator keeps more precision while applying the formula.
A worked example
Loan amount: ₹5,00,000.00 · Annual interest rate: 9 % · Loan tenure: 60 months.
Monthly EMI: ₹10,379.18
This example uses the inputs above. Your result changes when you change them.
Assumptions & limitations
- Payments are made monthly, at the end of the period, and the first payment is one month after borrowing.
- The rate stays constant. Processing fees, insurance, taxes, late fees and prepayments are excluded.
- Calculations retain full precision; lenders may round each instalment or use different daily-interest conventions.
Questions about this tool
What happens at 0% interest?
The principal is divided by the number of payments. For example, ₹1,20,000 over 12 months is ₹10,000 a month.
Why does a longer tenure change the total interest?
A smaller monthly payment leaves principal outstanding for longer. At the same positive rate, this generally increases the total interest in this fixed-rate model.
Published by Sanu Tech Innovation LLP · Model notes updated 30 September 2026. Read our calculation standards or report a reproducible issue.