Loan EMI Calculator with Amortisation Schedule
Monthly instalment, total interest and a full amortisation schedule for any principal, rate and term.
Loan EMI Calculator
Monthly EMI
102.58
Total Interest
1,154.96
18.8% of total payment
Total Payment
6,154.96
over 60 months
Payment Breakdown
The EMI formula
An equated monthly instalment is the fixed payment that exactly clears principal and interest over the term, on a reducing balance.
EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)
- P
- Principal — the amount borrowed
- r
- Monthly interest rate = annual rate ÷ 12 ÷ 100
- n
- Number of monthly instalments = years × 12
Worked example
- Principal
- 500,000
- Annual rate
- 9% → r = 0.0075
- Term
- 5 years → n = 60
- (1.0075)⁶⁰
- 1.5657
- Numerator
- 500,000 × 0.0075 × 1.5657 = 5,871
- Denominator
- 0.5657
EMI ≈ 10,379 per month · Total paid 622,740 · Total interest 122,740
Every instalment is the same, but its composition is not. Early payments are mostly interest; later ones are mostly principal. That is what the amortisation schedule shows, and it is why paying off a loan early saves far less than half the interest even at the halfway point.
Why prepayment is so effective early
Interest each month is charged on the outstanding balance. Reduce the balance and you remove interest for every remaining month of the term — so a prepayment made in year one saves interest on that amount for the whole remaining term, while the same prepayment in the final year saves almost nothing.
On the example above, paying an extra 1,000 per month from the start clears the loan roughly 11 months early and saves around 25,000 in interest. The same extra payment started in year four saves a small fraction of that.
Two things to check before prepaying. Many lenders charge a prepayment penalty, particularly on fixed-rate loans — in some jurisdictions this is capped or prohibited on floating-rate personal loans, so it is worth knowing the local rule. And ask whether a prepayment reduces the term or the instalment: reducing the term saves far more interest, but lenders often default to reducing the instalment.
The comparison that matters is against your other options. Prepaying a loan is a guaranteed, risk-free return equal to its interest rate. At 9%, that beats most safe investments — but it does not beat clearing a 24% credit card first, and it should not come before an emergency fund, because money in a loan cannot be taken back out.
About
The Loan EMI Calculator uses the standard reducing-balance formula (EMI = P × r × (1+r)ⁿ / ((1+r)ⁿ − 1)) to compute your exact monthly payment for any fixed-rate loan. Enter the principal, annual interest rate, and tenure — it instantly shows the EMI, total amount payable, and total interest charged. The amortization table breaks every payment into principal and interest components so you can see how your balance reduces month by month.
How to use
- 1 Enter the loan principal (amount borrowed).
- 2 Enter the annual interest rate (e.g. 8.5 for 8.5%).
- 3 Set the loan tenure in years or months.
- 4 The EMI, total payment, and total interest are calculated instantly.
- 5 Scroll down to see the full month-by-month amortization schedule.
- What does EMI stand for and how is it calculated?
- EMI stands for Equated Monthly Instalment — the fixed monthly payment you make to repay a loan over a set tenure. It is calculated using the reducing-balance formula: EMI = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1), where P is the principal, r is the monthly interest rate (annual rate ÷ 12), and n is the number of monthly instalments.
- Why does the early part of my EMI pay mostly interest?
- In reducing-balance loans, interest is calculated on the outstanding principal each month. Early in the loan, the outstanding balance is high, so most of your EMI goes toward interest. As you pay down the principal month by month, the interest portion shrinks and the principal portion grows — even though the EMI stays constant. The amortization table shows this breakdown for every month.
- How can I reduce the total interest I pay on a loan?
- Three strategies: (1) Make part-prepayments — any extra amount paid reduces the principal and cuts future interest. (2) Choose a shorter tenure — your EMI will be higher but total interest paid will be much lower. (3) Negotiate a lower interest rate — even a 0.5% reduction can save thousands over a long tenure. Use the calculator to compare different scenarios.
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