EMI Calculator – Calculate Monthly Loan Payments & Amortization Schedule

EMI Calculator – Calculate Monthly Loan Payments & Amortization Schedule

An Equated Monthly Installment (EMI) is the fixed amount you pay to a bank or lender on a set date every month until your loan balance is completely cleared. Whether you are financing a primary home purchase, buying a car, or securing a personal loan, understanding your monthly EMI helps you evaluate budget affordability before signing a loan contract.

This calculator computes your Monthly EMI, Principal Loan Amount, Total Interest Payable, Total Repayment, and generates a full interactive yearly/monthly Amortization Schedule.

How Reducing-Balance Amortization Works

Most personal, auto, and residential mortgage loans use reducing-balance amortization. This means interest is calculated only on the remaining unpaid principal balance at the beginning of each monthly billing cycle. On a 100,000 loan at 9.5%, the first payment splits into791.67 of interest and 1,308.52 of principal; because the balance is now lower, the next payment's interest charge drops to781.31 and a larger $1,318.88 goes toward principal. That shift — more interest early, more principal later — repeats every month until the loan is paid off.

The Mathematical EMI Formula

The calculator evaluates monthly payments using the standard amortizing loan equation:

EMI = P × R × ((1 + R)^N / (1 + R)^N - 1)

Where:

• P: Principal Loan Amount (total money borrowed).
• R: Monthly Periodic Interest Rate, derived by dividing the annual rate by 12:

R = (Annual Interest Rate (p.a.) / 12 × 100)

• N: Total Number of Monthly Installments (Tenure in Years × 12 or total months).

Derived Totals

• Total Repayment: Monthly EMI × N (calculated using full internal precision)
• Total Interest Payable: Total Repayment - P
• Principal Share %: (P ÷ Total Repayment) × 100
• Interest Share %: (Total Interest ÷ Total Repayment) × 100

Step-by-Step Worked Numerical Example (Matches Calculator Defaults)

Let's calculate the EMI and payment breakdown for a $100,000 loan at an annual interest rate of 9.5% over a 5-year tenure (60 months):

Step 1: Convert Annual Rate to Monthly Periodic Rate (R)

• Annual Rate: 9.5%
• Monthly Periodic Rate (R): 9.5% ÷ 12 ÷ 100 = 0.0079166667 (or 0.791667% per month)

Step 2: Determine Total Number of Payments (N)

• 5 years × 12 months = 60 monthly payments

Step 3: Compute Monthly EMI

Using the reducing-balance formula:

• P =100,000$
• R = 0.0079166667
• N = 60
• (1 + R)^60 = (1.0079166667)^60 ≈ 1.605009
• Factor = 1.605009 ÷ (1.605009 - 1) ≈ 2.652866
• Monthly EMI: 100,000 × 0.0079166667 × 2.652866 = $2,100.19 per month

Step 4: Calculate Total Repayment & Total Interest Payable

• Total Repayment: $126,011.17
• Total Interest Payable: 126,011.17 -100,000.00 = $26,011.17

Step 5: Understand the Payment Split (Percentages)

• Principal Share: (100,000.00 ÷126,011.17) × 100 = 79.4%
• Interest Share: (26,011.17 ÷126,011.17) × 100 = 20.6%

First 3 Months Amortization Breakdown ($100,000 @ 9.5% p.a.)

The table below illustrates how the monthly $2,100.19 EMI payment shifts from interest toward principal during the initial billing cycles:

Notice how monthly interest drops from 791.67 in Month 1 to770.87 in Month 3 as the remaining loan balance falls!

Impact of Loan Tenure Selection ($100,000 Principal @ 9.5% p.a.)

Adjusting your loan tenure creates a direct trade-off between monthly payment affordability and long-term interest cost:

What This Calculator Does NOT Include

To model home purchase affordability limits before applying for a loan, try the Home Affordability Calculator or estimate long-term investment growth with the SIP Calculator.