EMI Calculator
Calculate monthly EMI, total interest and see the full repayment schedule. Free EMI calculator for India.
In short
An EMI calculator finds the fixed monthly instalment on a loan from the principal, annual interest rate and tenure, using the reducing-balance formula banks follow. VyaparKit's free EMI calculator shows the monthly EMI, total interest, total payment and the principal-to-interest split, plus a month-by-month amortisation schedule of principal, interest and outstanding balance.
Monthly EMI
₹16,607.15
for 36 months
Principal 84% · Interest 16%
EMI formula
EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1), where r is the monthly rate (annual ÷ 12 ÷ 100) and n the number of months.
Reducing vs flat rate?
Banks quote reducing-balance rates (used here). A 'flat' rate advertised by some lenders is roughly 1.8× more expensive than it sounds.
About the emi calculator tool
EMI stands for equated monthly instalment: the fixed amount you pay every month on a business loan, vehicle loan, machinery loan, home loan or personal loan. Each EMI contains some interest on the outstanding balance and some repayment of principal; early EMIs are mostly interest, later ones mostly principal. Small businesses in India lean heavily on term loans and MSME loans, so knowing the EMI before signing decides whether the loan fits the monthly cash flow.
The EMI formula involves compounding to the power of the number of months, so it cannot be done on a basic calculator, and many lenders quote a 'flat rate' that hides the real cost. Excel's PMT function works but people mis-enter the monthly rate. The EMI calculator uses the reducing-balance formula with the annual rate converted to monthly, and the repayment schedule shows exactly how much interest each month carries and what remains after any month, which is what you need when planning a prepayment.
Business loan EMIs are a fixed cost; carry the figure into VyaparKit's break-even calculator to see how many extra units the loan requires you to sell.
How to calculate a loan EMI and view the schedule
- 1
Enter the loan amount
In 'Loan amount' type the principal you are borrowing, for example 5,00,000.
- 2
Enter the interest rate
In 'Interest rate (p.a.)' type the annual reducing-balance rate from the sanction letter, such as 10. Use decimals like 10.5 if needed.
- 3
Set the tenure
Type the loan term and choose 'Months' or 'Years' with the switch below the box. 5 years and 60 months give the same result.
- 4
Read the EMI
The large figure is the monthly EMI. Below it are the principal, total interest and total payment, with a bar showing the share of each.
- 5
Open the repayment schedule
Click 'Show repayment schedule' to see each month's principal, interest and closing balance. Scroll to any month to know the outstanding amount for a prepayment or foreclosure.
The formula, with a worked example
- EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the principal, r is the monthly rate (annual rate ÷ 12 ÷ 100) and n is the number of months.
- Worked example: ₹5,00,000 at 10% per annum for 5 years. r = 10 ÷ 1200 = 0.008333 and n = 60. EMI = ₹10,624 per month (₹10,623.52 unrounded).
- Total payment = EMI × n = ₹10,623.52 × 60 = ₹6,37,411. Total interest = ₹6,37,411 − ₹5,00,000 = ₹1,37,411, about 21.6% of the total paid.
- Month 1 split: interest = ₹5,00,000 × 0.008333 = ₹4,167; principal = ₹10,624 − ₹4,167 = ₹6,457; balance after month 1 = ₹4,93,543.
- Each later month the interest falls because it is charged on the reduced balance, and the principal portion rises by the same amount; the EMI stays constant.
- Longer tenure lowers the EMI but raises total interest: the same ₹5 lakh at 10% over 3 years costs about ₹16,134 a month but only ₹80,830 in interest.
- A 'flat rate' loan charges interest on the original principal for the full term; a 10% flat rate costs roughly the same as an 18% reducing-balance rate. Always compare reducing rates.
- Processing fees, insurance and GST on fees are outside the EMI and raise the effective cost; ask the lender for the annual percentage rate (APR).
Who uses the emi calculator
Shop owners taking MSME or Mudra loans
A kirana owner in Varanasi checks whether a ₹5 lakh Mudra loan at 10% over 5 years fits with a ₹10,624 EMI against monthly profit.
Transporters buying vehicles
A Ludhiana transporter compares a ₹18 lakh truck loan over 4 and 5 years to see how the EMI and total interest change.
Manufacturers financing machinery
A printing press in Sivakasi uses the schedule to know the outstanding balance after 24 months, when it plans to prepay from a large order.
Individuals with home or car loans
A salaried borrower checks the interest portion for the year to claim the home loan deduction under Section 24.
EMI Calculator: frequently asked questions
- How is EMI calculated on a loan?
- Banks use the reducing-balance formula EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where r is the monthly rate and n the number of months. For ₹5,00,000 at 10% per annum over 60 months, r is 0.8333% and the EMI is ₹10,624. Total interest over the loan is about ₹1,37,411.
- What is the EMI for a ₹5 lakh loan?
- It depends on rate and tenure. At 10% for 5 years the EMI is ₹10,624; for 3 years it is about ₹16,134; for 7 years about ₹8,301. At 12% for 5 years it rises to ₹11,122. Enter your own rate and tenure in the calculator to get the exact figure and the schedule.
- What is the difference between flat rate and reducing balance interest?
- A reducing-balance rate charges interest only on the outstanding principal, which falls every month. A flat rate charges interest on the full original amount for the entire term, so it costs far more: a 10% flat rate on a 5-year loan works out close to an 18% reducing rate. Regulated banks quote reducing rates; compare on that basis.
- How does prepayment reduce my EMI or tenure?
- A prepayment cuts the outstanding principal, so less interest accrues. Lenders let you either keep the EMI and shorten the tenure, which saves the most interest, or keep the tenure and lower the EMI. Use the repayment schedule to find the balance at the month you plan to prepay, and check foreclosure charges in the sanction letter.
- Why is the interest portion so high in the first EMIs?
- Because interest is charged on the full outstanding balance, which is largest at the start. On a ₹5 lakh loan at 10%, the first EMI of ₹10,624 carries ₹4,167 of interest and only ₹6,457 of principal. As the balance drops the interest portion shrinks and more of each EMI goes towards principal.
- Is GST charged on loan EMIs?
- No. Interest on loans is exempt from GST, so the EMI itself carries no tax. GST at 18% does apply to processing fees, foreclosure charges, late payment charges and similar service fees, which are billed separately from the EMI.
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