Calculator Tools
Estimate a reducing-balance loan from amount, annual interest rate and tenure in months or years. Review monthly EMI, principal and interest, optional recurring prepayments, and download the full amortization schedule as CSV.
Loan details
Simple workflow
How to use EMI Calculator
- 1Enter the loan amount, annual interest rate and tenure in months or years.
- 2Optionally enter a monthly prepayment, then select Calculate EMI.
- 3Review totals and the monthly principal-interest schedule, or download it as CSV.
Good to know
Frequently asked questions
Which EMI formula does this calculator use?
It uses EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is principal, r is the monthly rate and n is the number of months. At 0% interest it uses principal divided by months.
How does a longer tenure affect a loan?
A longer tenure usually reduces the monthly EMI but increases total interest because the outstanding balance is charged for more months.
How is a prepayment calculated?
The optional amount is added after the scheduled principal each month. It reduces the balance for the next month's interest and may shorten the estimated payoff period.
Does this match every lender's schedule?
No. It is an educational estimate using a fixed rate and monthly reducing balance. Fees, taxes, payment dates, rate changes, rounding and lender-specific prepayment rules can change real statements.
Practical guide
Understand EMI, interest and the repayment schedule
A reducing-balance loan charges each month's interest on the outstanding principal. The calculator uses EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), where P is principal, r is the monthly interest rate, and n is the number of monthly payments. A zero-interest loan uses principal divided by months.
Each schedule row subtracts that month's principal portion from the balance. An optional recurring prepayment is applied directly to principal, so later interest is calculated on a smaller balance. The calculator keeps the normal EMI visible and shows the estimated earlier payoff.
Worked example
Estimate a five-year loan
- Start with
- Enter a loan amount of 500,000, an annual rate of 8.5%, and a tenure of 5 years.
- Choose
- Leave monthly prepayment at 0, choose a display currency, and select Calculate EMI.
- You get
- The summary shows monthly EMI, total interest and total payment. The table shows how the interest portion falls and the principal portion rises as the balance is repaid.
Tips for a useful result
- A longer tenure usually lowers the monthly EMI but increases total interest because the balance remains outstanding for longer.
- A higher interest rate raises both the EMI and total interest when the amount and tenure stay the same.
- Prepayment can shorten the payoff period and reduce interest, but real lenders may charge fees or apply different rules. This is an informational estimate, not personalized financial advice.
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