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How to Calculate EMI Manually
EMI (Equated Monthly Instalment) is the fixed monthly payment you make to repay a loan. The formula combines principal, interest rate, and tenure into one number.
- Note the three inputs: P = loan principal, R = annual interest rate (%), N = tenure in months.
- Convert the annual rate to a monthly rate: r = R ÷ 12 ÷ 100.
- Calculate (1 + r)^N using a calculator or the compound-interest tables.
- Apply the formula: EMI = P × r × (1 + r)^N ÷ ((1 + r)^N − 1).
- Total payment = EMI × N. Total interest = Total payment − P.
- For an amortization schedule, repeat monthly: Interest = Balance × r, Principal paid = EMI − Interest, new Balance = old Balance − Principal paid.
EMI Formula
EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), where P = principal amount, r = monthly interest rate (annual rate ÷ 12 ÷ 100), n = total number of monthly instalments. When the interest rate is 0 %, the formula simplifies to EMI = P ÷ n. The amortization identity guarantees that each equal payment covers the accrued interest first and applies the remainder to the outstanding principal, so the interest share shrinks and the principal share grows over time.
Why Use Our Loan Calculator?
- Instant amortization table — see a year-by-year breakdown of how each payment splits between principal and interest.
- Visual pie chart — the donut chart shows the total-interest-to-principal ratio at a glance.
- Slider + input — drag the sliders for quick exploration, or type exact numbers for precision.
- No sign-up, no ads, no email gate — your loan amount is private and never sent to a server.
- Works for any loan type — home, personal, car, education — just change the numbers.
Frequently Asked Questions
What is EMI?
EMI stands for Equated Monthly Instalment. It is the fixed amount you pay every month to the lender until the loan is fully repaid. Each EMI contains an interest component and a principal-repayment component.
How does interest rate affect EMI?
A higher interest rate increases the EMI and the total interest paid over the loan tenure. Even a 0.5 % increase on a large home loan can add thousands to your total repayment. Use the slider to see the impact in real time.
What happens if I make part-prepayments?
Prepaying a lump sum reduces the outstanding principal, which in turn reduces the interest accrued each month. This can either shorten the loan tenure or lower future EMIs, depending on your lender's terms.
Fixed vs floating interest rate — which is better?
Fixed rates stay the same for the entire tenure, giving payment certainty. Floating rates change with the market — they can go up or down. If rates are expected to fall, floating may save money; if they are expected to rise, fixed offers protection.
What is an amortization schedule?
An amortization schedule is a table that shows, for each period, how much of your payment goes toward interest and how much goes toward repaying the principal. Early payments are interest-heavy; later payments are principal-heavy.
Is my loan amount data private?
Yes. Every calculation runs in your browser. No loan details, income figures, or personal data are sent to any server or third party.