Loan / EMI Calculator
Calculate monthly loan payments, total interest and full amortisation schedule for any loan amount, interest rate and term. Free, browser-based.
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How EMI is Calculated
EMI (Equated Monthly Instalment) is calculated using the formula: EMI = P × r × (1+r)ⁿ / ((1+r)ⁿ − 1) where P = principal, r = monthly interest rate and n = number of months. Each payment covers accrued interest first; the remainder reduces the principal.
Understanding Amortisation
| Column | Description |
|---|---|
| Payment | Month number in the repayment schedule |
| EMI | Fixed monthly payment amount |
| Principal | Portion reducing the loan balance |
| Interest | Portion paid to the lender as interest |
| Balance | Remaining loan amount after the payment |
Tips to Reduce Total Interest
Making extra principal payments reduces your balance faster, slashing total interest paid. Even one extra payment per year on a 30-year mortgage can shave years off the term. A shorter loan term also dramatically reduces total interest despite higher monthly payments.