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Loan & EMI Calculator

Calculate monthly payments, total interest and full amortization. Compare extra payment impact.

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Compound Interest Calculator

Example 1 — Lump sum, no contributions

A = 1,00,000 × (1.10)^10 ≈ ₹2,59,374 — more than 2.5× growth

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📘 What is the Loan & EMI Calculator?

Whether it is a home loan, car loan or personal loan, the EMI (Equated Monthly Instalment) determines how much of your monthly budget is committed for years — sometimes decades. This calculator computes your exact EMI, total interest payable over the life of the loan, and the full month-by-month amortization schedule, plus shows exactly how much time and interest you save by making extra payments.

⚙️ How Loan / EMI is calculated

The EMI formula

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 ÷ 100), and n is the total number of monthly instalments (loan tenure in months). This formula ensures every instalment is identical while the split between principal and interest changes each month.

Why early EMIs are mostly interest

In the early months of a loan, the outstanding principal is at its highest, so the interest portion of each EMI is largest and the principal portion is smallest. As the principal reduces month by month, the interest portion shrinks and the principal portion grows — even though the total EMI stays constant. This is why prepaying early in a loan saves dramatically more interest than prepaying near the end.

How extra payments accelerate payoff

Any extra amount you pay each month goes 100% toward reducing the principal (since the EMI has already covered that month's interest). A smaller principal means every subsequent month's interest is calculated on a smaller base — creating a snowball effect that can cut years off a 20-year loan with a relatively modest extra payment.

Reading the amortization table

Each row shows, for a given month or year: the EMI paid, how much went to interest, how much went to principal, and the remaining loan balance. The "total interest payable" figure is the sum of every interest portion across the entire schedule — for long-tenure loans, this can exceed the original loan amount.

EMI formula

EMI = P × r × (1+r)ⁿ ÷ [(1+r)ⁿ − 1]

P = principal, r = monthly rate, n = number of months

🧮 Worked examples

Example 1 — Home loan

₹40,00,000 loan at 8.5% annual interest for 20 years (240 months).

→ EMI ≈ ₹34,700/month · Total interest over 20 years ≈ ₹43.3 lakh — more than the loan itself

Example 2 — Car loan

₹8,00,000 loan at 9% annual interest for 5 years (60 months).

→ EMI ≈ ₹16,600/month · Total interest ≈ ₹1.97 lakh

Example 3 — Impact of ₹5,000/month extra payment

Same ₹40,00,000 / 8.5% / 20-year loan as Example 1, with an extra ₹5,000 paid every month.

→ Loan paid off roughly 6–7 years early, saving approximately ₹15–18 lakh in interest

💡 Original insights & how to use this calculator

Deciding between a 15-year and 20-year tenure

A longer tenure lowers your EMI but increases total interest substantially. Run this calculator at both 15 and 20 years for the same loan amount and rate — the EMI difference might be smaller than you expect, while the total-interest difference is often dramatic.

Is a 0.25% rate difference worth refinancing for?

On a large, long-tenure loan, even a small rate reduction compounds into significant savings. Enter your current rate, then re-run with a 0.25% or 0.5% lower rate to quantify exactly how much a refinance could save before factoring in processing fees.

Building an annual prepayment habit

Rather than a fixed monthly extra amount, many borrowers make one lump prepayment per year (e.g., from a bonus). While this calculator models monthly extra payments, you can approximate an annual lump sum by dividing it by 12 and entering that as your "extra monthly payment" for a close estimate.

Understanding the real cost of "0% interest" offers

Retail "0% interest" EMI offers on purchases often hide the cost in the product price itself. Use this calculator to see what the EMI would be at a realistic interest rate (say 14–18% for unsecured credit) on the same amount and tenure — if the advertised 0% EMI matches that number, the discount has likely been folded into the price.