What exactly is an EMI?

An EMI is the fixed monthly amount you pay until a loan is repaid. Every payment is the same size, but early instalments are mostly interest and later ones are mostly principal, so the balance falls slowly at first and quickly near the end.

Does the processing fee change my EMI?

No. A processing fee is charged upfront and is not part of the instalment, so the EMI is unchanged. It does increase the total cost of borrowing, so the calculator reports it separately. If your lender finances the fee, add it to the loan amount instead.

How can I pay less interest overall?

Shortening the tenure is the most effective lever: it raises the EMI but cuts total interest sharply. A lower rate, a larger down payment, and prepayments toward principal also reduce total interest.

What does the amortization schedule show?

It lists every instalment and splits it into interest charged and principal repaid, with the remaining balance after each payment. The yearly view aggregates twelve months at a time, the monthly view shows each payment, and the CSV export always contains the full month-by-month detail.

Is this a flat-rate or reducing-balance calculation?

Reducing balance. Interest each month is charged only on the outstanding balance, so it shrinks as you repay. Flat-rate loans charge interest on the original principal for the whole term and cost significantly more at the same headline rate.

Will my lender quote exactly this EMI?

Usually within a small margin. Lenders round instalments, may use a different day-count convention, and often add insurance or statutory charges. Treat the result as a planning estimate and confirm the final schedule with your lender.

LoansUpdated July 31, 2026

EMI Calculator

Work out the monthly instalment on any fixed-rate loan, see how much of it goes to interest, and download a full amortization schedule.

How to use this calculator

Step 1
Enter the loan amount
Use the amount you actually plan to borrow, after any down payment.
Step 2
Set rate and tenure
Use the lender's nominal annual rate, then pick a tenure in years or months.
Step 3
Add the processing fee
Enter it as a flat amount or a percentage of the principal to see your true cost.

Quick facts

Interest type: Fixed, reducing balance
Compounding: Monthly
Maximum tenure: 40 years (480 months)
Fee treatment: Charged upfront, outside the EMI

Loan details

Adjust the values to see how each one changes your instalment.

Currency

Loan amount

Adjust amount

$10k$2000k

Interest rate

Adjust rate

0%20%

Tenure

yrs

Adjust tenure

1 yr40 yr

Processing fee

Charged upfront by the lender, as a share of the principal.

Estimates assume a fixed rate and equal monthly instalments.

Monthly EMI

$1,863.93

Payable every month for 20 yrs (240 instalments).

Principal: $250,000
Total interest: $197,344
Processing fee: $2,500
Total cost of loan: $449,844

Effective monthly rate 0.542%.

Total interest

$197,344

43.9%of total cost

Total payment

$447,344

$449,844 including the processing fee.

Cost breakdown

How much of your total outlay is principal versus interest and fees.

Principal55.6%
Interest43.9%
Processing fee0.6%

Remaining balance

Outstanding principal falls slowly at first, then accelerates.

Interest dominates early instalments; principal repayment overtakes it later in the term.

Amortization schedule

Every instalment split into principal and interest across 20 yrs.

Year	Principal	Interest	Total paid	Balance
Year 1	$6,303	$16,064	$22,367	$243,697
Year 2	$6,725	$15,642	$22,367	$236,972
Year 3	$7,175	$15,192	$22,367	$229,797
Year 4	$7,656	$14,711	$22,367	$222,141
Year 5	$8,169	$14,199	$22,367	$213,973
Year 6	$8,716	$13,652	$22,367	$205,257
Year 7	$9,299	$13,068	$22,367	$195,958
Year 8	$9,922	$12,445	$22,367	$186,036
Year 9	$10,587	$11,781	$22,367	$175,449
Year 10	$11,296	$11,072	$22,367	$164,154
Year 11	$12,052	$10,315	$22,367	$152,102
Year 12	$12,859	$9,508	$22,367	$139,243
Year 13	$13,720	$8,647	$22,367	$125,522
Year 14	$14,639	$7,728	$22,367	$110,883
Year 15	$15,620	$6,747	$22,367	$95,263
Year 16	$16,666	$5,701	$22,367	$78,597
Year 17	$17,782	$4,585	$22,367	$60,815
Year 18	$18,973	$3,394	$22,367	$41,843
Year 19	$20,243	$2,124	$22,367	$21,599
Year 20	$21,599	$768	$22,367	$0
Total	$250,000	$197,344	$447,344	$0

The CSV export always contains the full month-by-month schedule with opening balance, EMI, principal, interest and cumulative totals — even when the yearly view is shown here. Processing fees are charged upfront and are not part of the instalment rows.

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How EMI is calculated

The EMI formula spreads principal and interest into equal monthly payments. Each instalment is identical, but its split shifts from mostly interest to mostly principal over time.

EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)

EMI

Equated monthly instalment

Principal

The amount borrowed.

Monthly interest rate

The annual rate divided by 12 and by 100. A 9% annual rate gives r = 0.0075.

Number of instalments

The tenure expressed in months.

When the rate is zero the formula is undefined, so the calculator falls back to P ÷ n. Total interest is the sum of the interest column in the schedule, which equals (EMI × n) − P.

Assumptions

The interest rate stays fixed for the whole tenure.
Interest is compounded monthly on the reducing balance.
Every instalment is paid in full and on time, with no prepayments.
The processing fee is paid upfront and is not financed into the loan.
Insurance, stamp duty, late fees and other lender charges are excluded.

Frequently asked questions

Answers about the emi calculator.

An EMI, or equated monthly instalment, is the fixed amount you pay a lender each month until a loan is fully repaid. Every payment is the same size, but the split inside it changes: early instalments are mostly interest, while later ones are mostly principal. That is why the outstanding balance falls slowly at the start and quickly near the end.

Related calculators

Continue exploring adjacent tools in this topic.

Guides that explain this

Background reading on the ideas behind these numbers.

Loans

Reading a loan offer: the numbers that matter

A sanction letter draws your eye to the interest rate and the EMI. Neither is the number that decides what the loan costs you. Here is what to look at instead, and which clauses are worth negotiating before you sign.

Jul 9, 20268 min read

This tool is provided for educational purposes only. Results are estimates based on the values you enter and do not constitute financial advice.

Year

Principal

Interest

Total paid

Balance

Year 1

$6,303

$16,064

$22,367

$243,697

Year 2

$6,725

$15,642

$22,367

$236,972

Year 3

$7,175

$15,192

$22,367

$229,797

Year 4

$7,656

$14,711

$22,367

$222,141

Year 5

$8,169

$14,199

$22,367

$213,973

Year 6

$8,716

$13,652

$22,367

$205,257

Year 7

$9,299

$13,068

$22,367

$195,958

Year 8

$9,922

$12,445

$22,367

$186,036

Year 9

$10,587

$11,781

$22,367

$175,449

Year 10

$11,296

$11,072

$22,367

$164,154

Year 11

$12,052

$10,315

$22,367

$152,102

Year 12

$12,859

$9,508

$22,367

$139,243

Year 13

$13,720

$8,647

$22,367

$125,522

Year 14

$14,639

$7,728

$22,367

$110,883

Year 15

$15,620

$6,747

$22,367

$95,263

Year 16

$16,666

$5,701

$22,367

$78,597

Year 17

$17,782

$4,585

$22,367

$60,815

Year 18

$18,973

$3,394

$22,367

$41,843

Year 19

$20,243

$2,124

$22,367

$21,599

Year 20

$21,599

$768

$22,367

Total

$250,000

$197,344

$447,344

Assumptions

The interest rate stays fixed for the whole tenure.

Interest is compounded monthly on the reducing balance.

Every instalment is paid in full and on time, with no prepayments.

The processing fee is paid upfront and is not financed into the loan.

Insurance, stamp duty, late fees and other lender charges are excluded.