Enter the loan amount, annual interest rate and tenure in months or years to get your monthly EMI, the total interest and total amount payable. Switch between reducing-balance and flat-rate interest to see the real difference, with a month-by-month EMI schedule and principal-interest split.
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Loan details
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% / yr
Interest method
Enter your values to see the result.
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How to use the EMI Calculator
Enter the loan amount and the annual interest rate quoted by the lender.
Enter the tenure and choose whether it is in years or months.
Choose reducing balance or flat rate, as stated in your loan offer.
Read the monthly EMI, total interest and total amount payable.
Scroll to the EMI schedule to see principal, interest and balance for every month, and download it as CSV.
How EMI is calculated
An equated monthly instalment (EMI) is a fixed payment that clears both interest and principal over the tenure. On a reducing-balance loan:
Each month the interest part is the outstanding balance × r, and the rest of the EMI reduces the principal. Example: 10,00,000 at 9% for 20 years: r = 0.0075, n = 240, EMI ≈ 8,997, total interest ≈ 1,159,342.
A flat-rate loan charges interest on the original principal for the whole tenure: interest = P × annual rate × years, and EMI = (P + interest) ÷ n. The calculator also converts a flat rate into the equivalent reducing rate so you can compare offers fairly.
EMI per 1,00,000 borrowed (reducing balance)
Monthly EMI for each 100,000 of loan. Multiply by your loan size: a 25,00,000 loan is 25 ×.
Rate
1 year
3 years
5 years
10 years
20 years
7%
8,653
3,088
1,980
1,161
775
8%
8,699
3,134
2,028
1,213
836
9%
8,745
3,180
2,076
1,267
900
10%
8,792
3,227
2,125
1,322
965
11%
8,838
3,274
2,174
1,378
1,032
12%
8,885
3,321
2,224
1,435
1,101
14%
8,979
3,418
2,327
1,553
1,244
Frequently asked questions
What is the EMI formula?
On a reducing-balance loan EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r is the annual rate divided by 12 and by 100, and n is the number of monthly instalments. For example 10,00,000 at 9% for 20 years gives an EMI of about 8,997.
What is the difference between flat and reducing rate?
With a reducing (diminishing) balance rate, interest is charged only on the amount still owed, so it falls every month. With a flat rate, interest is charged on the full original amount for the whole tenure. A flat rate therefore costs much more: a 10% flat rate over 5 years is roughly equal to a 17.3% reducing rate.
Why is most of the early EMI interest?
Interest is calculated on the outstanding balance, which is largest at the start. As you repay, the interest part falls and the principal part of the same EMI rises. The schedule shows this month by month.
How can I reduce my EMI?
Choose a longer tenure, negotiate a lower rate, or make a larger down payment to borrow less. A longer tenure lowers the EMI but increases the total interest you pay, so compare both figures.
Does the EMI include processing fees or insurance?
No. The EMI covers principal and interest only. Processing fees, loan insurance and taxes on fees are usually paid separately or deducted from the disbursed amount.
Does prepayment change the EMI?
A part-prepayment reduces the outstanding principal. Lenders usually let you either keep the EMI and shorten the tenure, or keep the tenure and lower the EMI. Keeping the EMI saves more interest.
Is my information private?
Yes. The calculator runs in your browser and nothing you enter is uploaded or saved on a server.
Are all the tools on FreeToolCabin tested for quality and accuracy?
Yes! Every tool on our site undergoes automated Q/A testing in real browser environments to ensure high precision, correct output, and zero errors. If you happen to spot a bug or have a suggestion, please contact us at [email protected] and our team will review it right away.