EMI Calculator
Calculate your monthly loan instalment (EMI) along with total interest payable and a complete amortization breakdown.
Loan Details
₹30 Lakh
Monthly EMI
₹26,035
per month · 20 yr · 8.5% p.a.
Principal
₹30,00,000
Total Interest
₹32,48,327
Total Payment
₹62,48,327
Principal vs Interest — per year
Amortization Schedule
| Year | Opening Balance | Principal Paid | Interest Paid | Closing Balance |
|---|---|---|---|---|
| Year 1 | ₹30,00,000 | ₹59,707 | ₹2,52,709 | ₹29,40,293 |
| Year 2 | ₹29,40,293 | ₹64,984 | ₹2,47,432 | ₹28,75,309 |
| Year 3 | ₹28,75,309 | ₹70,728 | ₹2,41,688 | ₹28,04,580 |
| Year 4 | ₹28,04,580 | ₹76,980 | ₹2,35,436 | ₹27,27,600 |
| Year 5 | ₹27,27,600 | ₹83,785 | ₹2,28,632 | ₹26,43,815 |
| Year 6 | ₹26,43,815 | ₹91,190 | ₹2,21,226 | ₹25,52,625 |
| Year 7 | ₹25,52,625 | ₹99,251 | ₹2,13,166 | ₹24,53,374 |
| Year 8 | ₹24,53,374 | ₹1,08,024 | ₹2,04,393 | ₹23,45,351 |
| Year 9 | ₹23,45,351 | ₹1,17,572 | ₹1,94,844 | ₹22,27,779 |
| Year 10 | ₹22,27,779 | ₹1,27,964 | ₹1,84,452 | ₹20,99,815 |
| Year 11 | ₹20,99,815 | ₹1,39,275 | ₹1,73,141 | ₹19,60,540 |
| Year 12 | ₹19,60,540 | ₹1,51,586 | ₹1,60,831 | ₹18,08,954 |
| Year 13 | ₹18,08,954 | ₹1,64,985 | ₹1,47,432 | ₹16,43,969 |
| Year 14 | ₹16,43,969 | ₹1,79,568 | ₹1,32,849 | ₹14,64,402 |
| Year 15 | ₹14,64,402 | ₹1,95,440 | ₹1,16,977 | ₹12,68,962 |
| Year 16 | ₹12,68,962 | ₹2,12,715 | ₹99,701 | ₹10,56,247 |
| Year 17 | ₹10,56,247 | ₹2,31,517 | ₹80,899 | ₹8,24,730 |
| Year 18 | ₹8,24,730 | ₹2,51,981 | ₹60,435 | ₹5,72,749 |
| Year 19 | ₹5,72,749 | ₹2,74,254 | ₹38,163 | ₹2,98,495 |
| Year 20 | ₹2,98,495 | ₹2,98,495 | ₹13,921 | ₹0 |
How It Works
The Equated Monthly Instalment (EMI) formula distributes your loan repayment into equal monthly payments over the chosen tenure. Each payment covers the month's interest on the remaining principal plus a portion of the principal itself. In the early months, a larger share goes toward interest; as the principal reduces, more of each payment chips away at the principal — this is amortization.
EMI Formula
EMI = P × r × (1+r)ⁿ / ((1+r)ⁿ − 1) — where P is the principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the tenure in months.
Example: For a ₹30 lakh home loan at 8.5% p.a. for 20 years — monthly rate r = 0.085/12 = 0.00708, n = 240 months. EMI ≈ ₹26,035 per month, totalling ₹62.5 lakh over 20 years (₹32.5 lakh interest on ₹30 lakh principal).
The key insight: in the early months almost 70% of your EMI goes toward interest. By year 15, more than half finally goes to principal. This is why prepayments made early in the tenure have an outsized impact on reducing total interest paid.
Key Terms
- P — Principal
- The total loan amount borrowed from the lender.
- r — Monthly rate
- Annual interest rate ÷ 12 ÷ 100. E.g., 8.5% p.a. → 0.007083/month.
- n — Tenure (months)
- Total loan duration converted to months. 20 years = 240 months.
- EMI
- Fixed monthly payment covering both principal repayment and interest.
Frequently Asked Questions
What is an EMI?
An Equated Monthly Instalment (EMI) is a fixed payment amount made by a borrower to a lender on a specified date each month. EMIs are used to pay off both the principal and interest of a loan over a fixed tenure.
How is EMI calculated?
EMI = P × r × (1+r)ⁿ / ((1+r)ⁿ − 1), where P = principal loan amount, r = monthly interest rate (annual rate ÷ 1200), and n = tenure in months. This ensures equal monthly payments throughout the loan period.
Does a longer tenure reduce my EMI?
Yes — a longer tenure lowers your monthly EMI but increases the total interest you pay over the life of the loan. A shorter tenure means higher EMIs but significantly less total interest.
What happens to my EMI if the interest rate changes?
If you have a floating-rate loan, a rise in interest rates increases your EMI (or extends the tenure). A fall in rates reduces it. Fixed-rate loans keep the EMI constant throughout the tenure.
Can I reduce my EMI by making prepayments?
Yes. Making part-prepayments reduces your outstanding principal, which reduces either your EMI or your remaining tenure depending on your lender's policy. Most lenders in India allow prepayments on home loans without charges after a lock-in period.
What is an amortization schedule?
An amortization schedule is a complete table of loan payments, showing how much of each EMI goes toward principal and how much toward interest, along with the outstanding balance after each payment.