EMI (Equated Monthly Instalment) is a fixed payment made by a borrower to a lender on a specific date each month. It includes both principal repayment and interest charges, calculated so the loan is fully paid off over the tenure.

How is EMI calculated?

EMI = [P × R × (1+R)^N] / [(1+R)^N − 1], where P is the principal loan amount, R is the monthly interest rate (annual rate ÷ 12), and N is the number of monthly instalments.

How does prepayment reduce EMI or tenure?

A lump-sum prepayment reduces the outstanding principal. You can either keep the EMI the same and shorten the tenure, or reduce the EMI while keeping the same tenure. Prepaying early in the loan tenure saves significantly more interest.

What is an amortization schedule?

An amortization schedule is a complete table showing the breakdown of each EMI payment into principal and interest components, and the outstanding loan balance after each payment, from the first month to the last.

Loan Type

Home

Car

Personal

Custom

Loan Amount

Principal

₹

₹10K ₹10Cr

Interest Rate (per annum)

Rate

1% 36%

Loan Tenure

Tenure

yrs

1 yr 30 yrs

Years

Months

Loan Start Date (optional)

Prepayment

Loan Comparison

Results

Enter loan details and click Calculate EMI

Amortization schedule will appear here

Principal Interest

Month	EMI	Principal	Interest	Balance

Enable Loan Comparison and fill Loan B details

Metric	Loan A (Current)	Loan B

Free Online EMI Calculator – Home, Car & Personal Loan

Calculate your Equated Monthly Instalment (EMI) instantly for any loan type. Get a full amortization schedule, interest vs principal breakdown charts, prepayment impact analysis, and side-by-side loan comparison — all in your browser with no data sent to any server. Built by Sanle Tech Solutions.

EMI Formula

EMI = [P·R·(1+R)^N] / [(1+R)^N−1]

P = Principal, R = Monthly Rate, N = Months

Prepayment Tip

Prepaying in early years saves significantly more interest because outstanding principal is highest then.

Reduce Interest

Even a 0.5% rate reduction on a ₹50L home loan over 20 years saves ₹3–5 lakh in total interest.

Frequently Asked Questions

What is EMI and how is it calculated?

EMI (Equated Monthly Instalment) is a fixed amount paid monthly to repay a loan. It is calculated as: EMI = [P × R × (1+R)^N] / [(1+R)^N − 1], where P is principal, R is monthly interest rate (annual rate ÷ 12), and N is total months. Each EMI partially repays principal and partly covers interest.

Should I reduce EMI or tenure after prepayment?

Reduce Tenure saves more total interest because you exit the loan sooner. Reduce EMI improves monthly cash flow, useful if income is irregular. For salaried individuals focused on wealth building, reducing tenure is generally better.

What is a good EMI-to-income ratio?

Most banks recommend keeping total EMIs (all loans) below 40–50% of your monthly take-home income. For a comfortable financial position, aim for under 30%. A high EMI-to-income ratio increases default risk and limits financial flexibility.

Does this EMI calculator include GST or processing fees?

No — this calculator computes the pure mathematical EMI based on principal, rate, and tenure. Actual bank EMIs may vary due to GST on interest, processing fees, insurance bundling, and rounding. Always cross-check with your bank's official sanction letter.

All calculations run entirely in your browser. No data is transmitted. Results are indicative — actual EMI may vary based on bank's internal rounding, fees, and disbursement date.