SampattiTrackWhat this calculator does
This calculator works out the equated monthly instalment (EMI) on a loan such as a home, car or personal loan. You enter the loan amount, the annual interest rate and the tenure in years and months. It shows the monthly EMI, the total interest, the total payment and a yearly table of principal paid, interest paid and the balance left. It runs in your browser and stores nothing.
The formula
The EMI is a fixed amount that clears the loan, interest included, in a set number of equal monthly payments:
Here P is the principal, r is the monthly rate (the annual rate divided by 12 and by 100), and n is the number of months. At a 0% rate the formula would divide by zero, so the calculator uses P ÷ n instead. For the schedule, each month’s interest is the opening balance times r, and the rest of the EMI reduces the principal.
A worked example
The form is pre-filled with a ₹10,00,000 loan at 8.5% for 20 years. The monthly rate is 0.7083% and there are 240 instalments. The EMI comes to about ₹8,678. Over 240 months you pay about ₹20,82,776 in total, of which about ₹10,82,776 is interest. In year one, around ₹84,236 of your payments is interest and only ₹19,902 reduces the loan. By year 20 the split has reversed.
How to use it
- Enter the loan amount and the annual interest rate quoted by your lender.
- Enter the tenure in years, months, or both.
- Read the EMI and totals, then scan the yearly table to see how the balance falls.
- Try a shorter tenure or a lower rate to see how much interest changes.
Limitations
- It assumes a fixed rate for the whole tenure. Floating-rate loans change as rates move.
- It ignores processing fees, insurance, prepayments, part-payments and moratorium periods.
- Lenders may round instalments or start interest from a different date, so their schedule can differ by small amounts.
- Check the figures against your lender’s loan statement before relying on them.
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 rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly instalments.
Why is most of my early EMI interest?
Interest is charged on the outstanding balance, which is highest at the start. So early instalments are mostly interest and later ones are mostly principal, even though the EMI stays the same.
What if the interest rate is 0%?
The EMI is then just the loan amount divided by the number of months, and total interest is zero. The calculator handles this case.
Will my lender's figure match exactly?
It may differ slightly. Lenders can round instalments, charge fees, use floating rates or change the first instalment date. Treat this as an estimate and check your loan schedule.
Related reading
Want the real numbers instead of estimates? Track real SIPs and loans in SampattiTrack, a private personal finance app for iPhone that keeps everything on your device. Get it on the App Store.
These calculators give estimates for learning and planning. They are not investment, tax, legal or financial advice, and they do not promise any result.