EMI & Loan Calculator
Work out the monthly instalment on any loan, see the true total interest, and read a full month-by-month amortisation schedule.
■ Principal ■ Interest
Amortisation schedule
| Year | Principal paid | Interest paid | Total paid | Balance |
|---|
About the EMI & Loan Calculator
An equated monthly instalment is a fixed payment that covers both interest and principal, calculated so the loan reaches exactly zero at the end of the term. Every payment is the same size, but its composition changes constantly: early payments are mostly interest, later ones are mostly principal. On a 20-year mortgage the first payment can be 80% interest, while the final one is almost entirely principal.
That structure explains several things that surprise borrowers. It is why paying a mortgage for five years can leave the balance barely reduced. It is why an overpayment early in a loan saves far more interest than the same amount paid later — an early overpayment removes principal that would otherwise have accrued interest for the entire remaining term. And it is why the total interest figure is the number that matters when comparing loans, not the monthly instalment.
The formula is EMI = P × r × (1+r)^n / ((1+r)^n − 1), where P is the principal, r is the monthly interest rate (the annual rate divided by twelve, then by a hundred) and n is the number of months. This calculator applies it exactly, then builds the full schedule so you can see, for any month, how much of that payment goes to interest, how much reduces the balance, and what is left outstanding.
How to use it
- Enter the loan amountThe principal you are borrowing, before any fees are added.
- Enter the annual interest rateThe nominal annual rate as a percentage. It is converted to a monthly rate internally.
- Set the termIn years or months. Longer terms lower the monthly payment and raise the total interest substantially.
- Read the resultsMonthly instalment, total interest, total amount payable, and interest as a percentage of the principal.
- Study the scheduleA month-by-month table of interest, principal and remaining balance for the whole term.
- Export itDownload the schedule as CSV to compare offers or plan overpayments in a spreadsheet.
Features
- Standard EMI formulaThe reducing-balance calculation used by banks and lenders worldwide.
- Full amortisation scheduleEvery month's interest, principal and closing balance for the entire term.
- Yearly summaryA condensed annual view for long terms, alongside the detailed monthly table.
- Interest breakdownTotal interest shown both as an amount and as a percentage of the principal borrowed.
- Flexible term entryEnter the term in years or months, whichever your loan documentation uses.
- CSV exportTake the whole schedule into a spreadsheet for comparison or planning.
Who uses this tool
- Home buyersCompare mortgage offers on total interest rather than headline monthly payment.
- Car buyersCheck whether a dealer's quoted instalment matches the rate and term they are actually offering.
- Personal loan borrowersSee the real cost of borrowing before signing, expressed as a total rather than a monthly figure.
- Anyone considering overpaymentUse the schedule to see how much interest an early lump sum would remove from the term.
Tips worth knowing
- Compare loans on total interest paid, not the monthly instalment. A longer term always looks cheaper monthly and costs far more overall.
- Extending a 20-year loan to 25 years typically cuts the payment by around 10% and raises total interest by roughly 30%.
- Overpay as early as you can. The same amount paid in year one removes far more interest than in year ten, because of how amortisation front-loads interest.
Frequently asked questions
What is EMI?
Equated monthly instalment: a fixed monthly payment covering both interest and principal, sized so the loan is fully repaid by the end of the term. The amount stays constant while the split between interest and principal shifts steadily toward principal.
How is EMI calculated?
Using EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1), where P is the principal, r is the monthly interest rate and n is the number of monthly payments. This is the standard reducing-balance formula used by lenders.
Why is so much of my early payment interest?
Interest is charged on the outstanding balance, which is at its largest at the start. As the balance falls, the interest portion of each fixed payment shrinks and the principal portion grows. The schedule here makes that shift visible month by month.
Does a longer loan term save money?
It lowers the monthly payment and increases the total cost, often substantially. Extending a 20-year loan to 25 years might reduce the instalment by about 10% while adding roughly 30% to the total interest paid.
How much does an overpayment actually save?
More than most people expect, especially early on. An overpayment reduces the principal immediately, so interest that would have accrued on that amount for every remaining month disappears. Use the schedule to see the outstanding balance and calculate the effect.
Does this include fees, insurance or taxes?
No. It calculates principal and interest only. Arrangement fees, mortgage insurance, property tax and other charges are added by the lender separately, so the true monthly outgoing on a mortgage is usually higher than the EMI shown.