Money tools
EMI Calculator — Loan, Prepayment & Amortization
Calculate your exact monthly payment for any loan — home, car, personal, or education. See the full amortization schedule and find out how prepaying even a little each month can save you years of interest.
View year-by-year amortization schedule
| Year | Principal paid | Interest paid | Total paid | Balance |
|---|
How this calculator works
EMI formula
EMI = P × r × (1+r)n ÷ ((1+r)n – 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is total months. The formula produces a fixed monthly payment covering both principal and interest.
Prepayment
Any extra monthly payment goes entirely toward reducing the principal. This lowers the interest charged in every subsequent month, shortening the loan tenure and reducing total interest paid. Even adding 5–10% of your EMI as prepayment can save years.
Amortization
The schedule shows how each year's payments split between principal and interest. Early years are interest-heavy; later years flip toward principal. Understanding this helps you decide when prepayment has the biggest impact (hint: the earlier, the better).
Frequently asked questions
How is EMI calculated?
EMI = P × r × (1+r)^n ÷ ((1+r)^n – 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the total number of months. This formula gives you a fixed monthly payment that covers both principal and interest over the loan tenure.
Does a lower tenure always save money?
Yes, a shorter tenure means you pay less total interest because the principal is repaid faster. However, the monthly EMI will be higher. Choose a tenure where the EMI fits comfortably within your budget — ideally under 40% of your monthly income.
What does prepayment do?
Prepayment means paying extra each month on top of your regular EMI. The extra amount goes entirely toward reducing the principal, which lowers future interest charges. Even a small additional payment can shave years off your loan and save you lakhs in interest.
What is an amortization schedule?
An amortization schedule is a table showing how each EMI is split between principal and interest over the life of the loan. In the early months, most of your EMI goes toward interest. As the principal shrinks, the interest portion decreases and more of each payment reduces the principal.
Is processing fee included in the EMI?
No. The processing fee is a one-time charge (usually 0.5–2% of the loan amount) that the lender deducts upfront. It does not affect your EMI but increases your effective cost of borrowing. This calculator shows it separately so you can see the true total cost.