Show yearly amortization schedule
| Year | Principal paid | Interest paid | Closing balance |
|---|---|---|---|
| 1 | 16,226.81 | 9,269.64 | 83,773.19 |
| 2 | 17,925.97 | 7,570.48 | 65,847.22 |
| 3 | 19,803.05 | 5,693.40 | 46,044.16 |
| 4 | 21,876.69 | 3,619.76 | 24,167.47 |
| 5 | 24,167.47 | 1,328.98 | 0.00 |
How to use the Loan EMI Calculator
- 1Enter the loan amount you plan to borrow.
- 2Enter the annual interest rate offered by your lender, as a percentage.
- 3Enter the loan tenure and choose Years or Months with the toggle.
- 4Read your Monthly EMI, Total interest and Total payment, and check the principal-vs-interest bar.
- 5Expand the yearly amortization schedule to see principal paid, interest paid and closing balance for each year.
What is an EMI?
EMI stands for equated monthly installment. It is the fixed amount you repay every month on a loan such as a home loan, car loan or personal loan. Each payment covers the interest charged for that month plus a portion of the original amount borrowed (the principal), so the loan is fully repaid by the end of the tenure. For a home loan, you can also use our mortgage calculator.
Although the EMI stays the same, its make-up changes over time. In the early months most of the payment goes toward interest because the outstanding balance is large. As the balance shrinks, the interest portion falls and more of each payment reduces the principal. The amortization schedule in this calculator shows that shift year by year.
How EMI is calculated
The calculator uses the standard reducing-balance formula used by most banks: EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1). Here P is the loan amount, r is the monthly interest rate (the annual rate divided by 12 and then by 100), and n is the number of monthly payments. For a step-by-step walkthrough, read how loan EMI is calculated.
Total payment is simply EMI × n, and total interest is the total payment minus the loan amount. If you enter a 0% interest rate, the formula cannot be used because it would divide by zero, so the calculator divides the loan amount evenly instead: EMI = P ÷ n. To see how a flat interest charge compares, try the simple interest calculator.
Example calculation
Suppose you borrow 100,000 at an annual rate of 10% for 5 years. The monthly rate is 10 ÷ 12 ÷ 100 ≈ 0.008333 and the number of payments is 60. Putting these into the formula gives an EMI of about 2,124.70 per month.
Over 60 months you would pay about 127,482.27 in total, of which roughly 27,482.27 is interest. In the first year alone, about 9,269.64 of your payments goes to interest and about 16,226.81 to principal, leaving a closing balance of roughly 83,773.19.
Tips to reduce your loan interest
Choose the shortest tenure you can comfortably afford. A longer tenure lowers the monthly EMI but increases total interest considerably, because interest is charged on the outstanding balance for more months. Try a few tenures in the calculator to see the difference.
A larger down payment reduces the principal and therefore both the EMI and the total interest. Comparing rates from several lenders also helps, since even a small rate difference adds up over many years. If your loan allows prepayments without heavy penalties, paying extra early in the term has the biggest effect, because that is when the balance and interest are highest. If you would rather invest that money, the compound interest calculator shows how it could grow.
Learn more
Frequently asked questions
Is the EMI shown here the same as my bank will charge?
It uses the same reducing-balance formula most lenders use, so it should be very close. Your actual installment can differ slightly because of processing fees, insurance, rounding rules or the exact date your first payment falls due. Treat the result as a reliable estimate and confirm the final figure with your lender.
Does a longer tenure reduce the total cost of a loan?
No. A longer tenure lowers each monthly payment but increases the total interest you pay, because the balance is outstanding for longer. A shorter tenure means higher EMIs but a lower overall cost.
What is an amortization schedule?
An amortization schedule breaks down your repayments over the life of the loan, showing how much goes to principal and how much to interest in each period, and the balance remaining afterward. This calculator summarises it by year so you can see how quickly the balance falls.
How does a 0% interest loan work in this calculator?
When the rate is 0%, there is no interest to charge, so the EMI is simply the loan amount divided by the number of months. Total interest shows as zero and total payment equals the loan amount.
Is my loan information saved anywhere?
No. All calculations run in your browser and nothing you enter is uploaded or stored. Closing or refreshing the page clears the inputs. More borrowing and savings tools are in the finance calculators section.