Move the sliders for any home, car or personal loan. See your monthly EMI, how much is interest, and the full year by year payoff — instantly, in your browser.
| Year | Principal paid | Interest paid | Balance left |
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An EMI (equated monthly instalment) is the fixed amount you pay your lender every month until a loan is repaid. Each instalment is made up of two parts: some goes towards the interest the lender charges, and the rest goes towards repaying the principal you borrowed.
The EMI is calculated with a standard reducing-balance formula: P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1), where P is the loan amount, r is the monthly interest rate, and n is the number of monthly instalments. You don't need to do this by hand — the calculator above does it instantly as you move the sliders.
In the first years, your outstanding balance is large, so most of each EMI goes towards interest and only a little towards principal. As the balance shrinks, the split gradually flips, and later EMIs pay off far more principal. The year-by-year schedule above shows this shift clearly — it is why prepaying early in a loan saves the most interest.
If you make a lump-sum prepayment, most lenders keep your EMI the same and shorten the tenure — which saves the most interest — though some let you reduce the EMI instead. Also note that this calculator assumes a fixed interest rate for the whole term. Many home loans are floating-rate, so the EMI or tenure can change when rates move. Treat the result as a close estimate and confirm the exact figures with your lender.
EMI uses the reducing balance formula: P x r x (1+r)^n divided by ((1+r)^n minus 1), where P is the loan amount, r is the monthly interest rate, and n is the number of monthly instalments. This calculator does that maths instantly as you move the sliders.
Each EMI is split between interest and principal. Early on, the outstanding balance is large, so most of the EMI goes to interest. As the balance falls, more of each EMI goes to principal. The year by year schedule above shows this shift clearly.
Most lenders keep your EMI the same and reduce the tenure when you prepay, which saves the most interest. Some let you reduce the EMI instead. Either way, prepayment lowers the total interest you pay because it cuts the outstanding balance.
This calculator assumes a fixed interest rate for the entire tenure. Many home loans are floating rate, so the EMI or tenure can change when rates move. Use it as a close estimate and confirm the exact figure with your lender.
You can lower the EMI by borrowing less (a larger down payment), choosing a longer tenure, or getting a lower interest rate. A longer tenure reduces the monthly EMI but increases the total interest paid, so there is a trade-off.