Method, example and interpretation · Revised 16 October 2026
Understand the repayment behind your EMI
A loan payment is a budget commitment over many years. This tool connects your loan amount, rate, and tenure to the monthly payment and a complete repayment schedule. Change any of the three inputs and use the schedule to see how quickly the outstanding balance falls.
How the calculation works
For principal P, monthly rate r and n monthly payments, EMI = P × r ÷ [1 − (1 + r)^−n]. The annual quoted rate is divided by 1,200. Each month, interest is calculated on the opening balance; the remainder of the payment repays principal. With zero interest, the payment is simply P ÷ n. Calculations retain precision until values are displayed.
Read the schedule rather than just the headline
Early payments contain more interest because the outstanding balance is larger. A longer term usually lowers the EMI but increases total interest. The yearly view groups monthly payments; the monthly view shows the remaining balance after each instalment. Print uses the complete schedule, including rows beyond the visible page.
What your lender may calculate differently
The projection assumes a fixed rate and equal monthly instalments starting one month after disbursement. Processing fees, insurance, irregular first periods, rate resets, moratoriums and prepayments are excluded. Compare the lender’s annual percentage rate and actual repayment terms as well as its quoted interest rate.
Worked example
₹8,00,000 borrowed at 9.5% for 5 years.
Monthly EMI: ₹16,801. Total interest: ₹2,08,089.
Keep the amount and rate fixed, then shorten the term to see the trade-off between monthly affordability and interest cost.
Questions about this tool
Does a lower EMI mean a cheaper loan?
No. A lower payment spread over more months can cost more overall. Compare total payments on the same principal and include fees.
Can I calculate a floating-rate home loan?
You can model a constant-rate scenario. Recalculate when the rate changes; this tool does not predict future rate resets.