Estimate the monthly EMI for a home, car or personal loan using the standard reducing-balance formula. Adjust the amount, rate and tenure to see the interest and total repayment instantly.
From ₹1,000 to ₹100 crore.
0% to 50% a year. Use 0 for an interest-free loan.
= 240 months (20 years)
for 240 months (20 years)
Principal + interest
| Segment | Value | Share |
|---|---|---|
| Principal | ₹25,00,000.00 | 48.0% |
| Interest | ₹27,06,939.40 | 52.0% |
Total repayment is the unrounded EMI times the number of months; amounts are rounded to the paisa only for display, so the rounded EMI times months can differ by a few paise. Lenders usually round the EMI and adjust the last instalment. Fees and insurance are not included.
Year 1 covers EMIs 1 to 12 from the first instalment, not the calendar year. Amounts are rounded to the nearest rupee here, so rows may not add up to the paisa-exact totals.
| Year | Opening balance | Principal paid | Interest paid | Closing balance |
|---|---|---|---|---|
| Year 1 | ₹25,00,000 | ₹49,756 | ₹2,10,591 | ₹24,50,244 |
| Year 2 | ₹24,50,244 | ₹54,154 | ₹2,06,193 | ₹23,96,091 |
| Year 3 | ₹23,96,091 | ₹58,940 | ₹2,01,407 | ₹23,37,150 |
| Year 4 | ₹23,37,150 | ₹64,150 | ₹1,96,197 | ₹22,73,000 |
| Year 5 | ₹22,73,000 | ₹69,820 | ₹1,90,527 | ₹22,03,180 |
| Year 6 | ₹22,03,180 | ₹75,992 | ₹1,84,355 | ₹21,27,188 |
| Year 7 | ₹21,27,188 | ₹82,709 | ₹1,77,638 | ₹20,44,479 |
| Year 8 | ₹20,44,479 | ₹90,020 | ₹1,70,327 | ₹19,54,459 |
| Year 9 | ₹19,54,459 | ₹97,977 | ₹1,62,370 | ₹18,56,482 |
| Year 10 | ₹18,56,482 | ₹1,06,637 | ₹1,53,710 | ₹17,49,846 |
| Year 11 | ₹17,49,846 | ₹1,16,063 | ₹1,44,284 | ₹16,33,783 |
| Year 12 | ₹16,33,783 | ₹1,26,321 | ₹1,34,026 | ₹15,07,462 |
| Year 13 | ₹15,07,462 | ₹1,37,487 | ₹1,22,860 | ₹13,69,974 |
| Year 14 | ₹13,69,974 | ₹1,49,640 | ₹1,10,707 | ₹12,20,335 |
| Year 15 | ₹12,20,335 | ₹1,62,866 | ₹97,480 | ₹10,57,468 |
| Year 16 | ₹10,57,468 | ₹1,77,262 | ₹83,085 | ₹8,80,206 |
| Year 17 | ₹8,80,206 | ₹1,92,931 | ₹67,416 | ₹6,87,275 |
| Year 18 | ₹6,87,275 | ₹2,09,984 | ₹50,363 | ₹4,77,291 |
| Year 19 | ₹4,77,291 | ₹2,28,545 | ₹31,802 | ₹2,48,746 |
| Year 20 | ₹2,48,746 | ₹2,48,746 | ₹11,601 | ₹0 |
| Total | ₹25,00,000 | ₹27,06,939 |
This calculator uses the standard reducing-balance method. Interest is charged every month on the amount you still owe, so as each EMI reduces the balance, the interest part of the next EMI gets smaller and the principal part gets larger. The EMI itself stays the same for the whole tenure.
The monthly rate r is the yearly rate divided by 12 and by 100. With n monthly instalments, the EMI is the fixed payment that brings the balance to exactly zero after the last one. If the rate is 0%, there is no interest to compound, so the EMI is simply the loan amount divided by the number of months.
Total repayment is the unrounded EMI multiplied by the number of months, and total interest is that total minus the loan amount. Amounts are rounded to the paisa only when they are shown, so multiplying the displayed EMI by the months can differ from the displayed total by a few paise.
r = annual rate % / 12 / 100 EMI = P x r x (1 + r)^n / ((1 + r)^n - 1) (when r > 0) EMI = P / n (when r = 0) Total repayment = EMI x n Total interest = Total repayment - P Balance after k EMIs = EMI x (1 - (1 + r)^-(n - k)) / r P = loan amount, n = number of monthly instalments
The EMI is ₹21,695.58 for 240 months. Total interest is ₹27,06,939.40 and total repayment is ₹52,06,939.40, so interest makes up 52.0% of everything you pay. In year 1 you pay ₹2,60,347 in total, of which ₹2,10,591 is interest and ₹49,756 reduces the loan, leaving a balance of ₹24,50,244.
Over 5 years the EMI is ₹21,247.04 and the total interest is ₹2,74,822.68. Over 20 years the EMI drops to ₹9,650.22 but the total interest rises to ₹13,16,051.95. A lower EMI is paid for with a much larger interest bill.
With a 0% rate the EMI is ₹5,00,000 divided by 24, which is ₹20,833.33. The total interest is ₹0.00 and the total repayment equals the loan amount, so the chart shows 100% principal.
Interest is charged on the full outstanding balance, which is largest at the start. In the ₹25,00,000 example, year 1 pays ₹2,10,591 interest against ₹49,756 principal. The principal share grows every month as the balance falls.
It lowers the monthly payment but raises the total interest, because you owe money for longer. For ₹10,00,000 at 10%, stretching from 5 to 20 years cuts the EMI from ₹21,247.04 to ₹9,650.22 and lifts total interest from ₹2,74,822.68 to ₹13,16,051.95.
On ₹25,00,000 over 20 years, moving from 8.5% to 9.5% raises the EMI from ₹21,695.58 to ₹23,303.28. Try your own numbers: small rate changes add up over long tenures.
Lenders may round the EMI to a whole rupee and adjust the last instalment, charge interest from the disbursal date rather than a full month, or add fees and insurance. This tool shows the pure formula, so treat it as an estimate and confirm with your lender's schedule.
No. This tool assumes the rate applies to the reducing balance. A flat rate charges interest on the original amount for the whole term, so it is not comparable. Ask the lender for the reducing-balance rate and enter that.