EMI Calculator

An Equated Monthly Installment (EMI) is a fixed payment amount made by a borrower to a lender at a specified calendar date each month. EMIs are designed to amortize both interest and principal balances over a defined tenure so that the outstanding loan reaches zero upon final payment. The mathematical formulation governing standard reducing-balance loan EMIs is: EMI = [P * r * (1 + r)^n] / [(1 + r)^n - 1] Where: - P = Principal Loan Amount borrowed - r = Monthly periodic interest rate, calculated as (Annual Interest Rate / 12) / 100 - n = Total number of monthly installments (Tenure in years * 12) If the interest rate is 0%, the equation reduces to a direct division: EMI = P / n. **Understanding Loan Amortization:** During the initial years of a loan (such as a 20-year home mortgage), a large proportion of each monthly EMI goes toward servicing accrued interest charges, with only a minor fraction reducing the principal balance. As the principal gradually declines over time, interest charges shrink proportionally, allowing an increasingly larger share of each subsequent EMI to diminish the principal balance. **Known Reference Case:** Consider a loan principal of ₹1,000,000 borrowed at an annual rate of 10% across a tenure of 10 years (120 months): - Monthly interest rate (r) = 10 / 12 / 100 = 0.008333... - Monthly EMI evaluates to approximately ₹13,215.07 - Total overall payment over 120 months = ₹1,585,808 - Total cumulative interest paid = ₹585,808 Our calculator dynamically renders an amortization table tracking month-by-month opening balances, principal portions, interest portions, and closing balances, rounding the final payment so the terminal balance reaches exactly zero. All calculations run strictly in your browser.