EMI Calculator — with Prepayment
Work out your loan EMI, total interest and full amortization schedule — then see how a prepayment or part-payment can reduce your EMI or tenure and save lakhs in interest.
Your monthly EMI
₹0
Total interest
₹0
Total payment
₹0
Debt-free in
—
Outstanding balance
BalancePrincipal vs interest
- Principal₹0
- Total interest₹0
- Total payment₹0
Amortization schedule
Year-by-year principal, interest and balance.
| Year | Principal | Interest | Balance |
|---|
How EMI works
An EMI (Equated Monthly Instalment) is the fixed amount you pay your lender every month until the loan is repaid. It is calculated on a reducing-balance basis: interest each month is charged only on the outstanding principal, so as you repay, the interest portion of every EMI shrinks and the principal portion grows.
EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)
where P is the loan amount, r is the monthly interest rate, and n is the number of months.
Why prepayment is so powerful
Because interest is charged on the outstanding balance, a prepayment orpart-payment reduces your principal faster and saves interest in everyremaining month. Over a long loan like a home loan, a modest extra payment can shave years off your tenure and save lakhs in interest — you can choose to reduce your EMI or your tenure. Try the extra payment field above to see it for your loan.
Shorter tenure vs lower EMI
A longer tenure lowers your monthly EMI but increases the total interest you pay, because the money is borrowed for longer. A shorter tenure raises the EMI but cuts total interest significantly. Use the slider to find a balance your budget can handle. Planning your salary around it? See yourin-hand salary first.
Frequently asked questions
How is EMI calculated?
EMI (Equated Monthly Instalment) is calculated on a reducing-balance basis using the formula EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly instalments. Each EMI is part interest and part principal; early EMIs are mostly interest, later ones mostly principal.
What is a loan amortization schedule?
An amortization schedule breaks down every payment into how much goes toward interest and how much reduces your principal, along with the outstanding balance over time. This calculator shows a year-by-year schedule so you can see exactly how your loan shrinks.
How does prepayment reduce my loan?
When you pay more than your EMI, the extra amount goes straight toward the principal. A smaller principal means less interest is charged in every following month, so your loan closes earlier and your total interest drops sharply. Enter an extra monthly amount above to see the savings.
Should I prepay my loan or invest the money?
It depends on the numbers. If your loan interest rate is higher than the return you can reliably earn after tax, prepaying usually wins. If you can earn more elsewhere (and you have an emergency fund), investing may be better. Prepaying a home loan also gives a guaranteed, risk-free saving.
Does a longer tenure reduce my EMI?
Yes — a longer tenure lowers your monthly EMI, but you end up paying much more total interest because the principal is outstanding for longer. A shorter tenure means a higher EMI but far less interest overall.
Is EMI calculated on a flat or reducing-balance basis?
This calculator uses the reducing-balance method, which is how banks calculate home, car and personal loan EMIs. Interest each month is charged only on the outstanding balance, not the original loan amount, so it is cheaper than a flat rate for the same headline number.
When I prepay, should I reduce my EMI or reduce the tenure?
Reducing the tenure almost always saves more interest, because you close the loan sooner and stop paying interest earlier. Reducing the EMI keeps the end date the same but lowers your monthly outgo, which helps cash flow. As a rule of thumb: cut the tenure if you can comfortably keep paying the same EMI, and cut the EMI only if you need the monthly relief.
How do I calculate EMI in Excel?
In Excel or Google Sheets, use =PMT(rate/12, months, -loan_amount), where rate is the annual interest rate (e.g. 0.09 for 9%), months is the tenure in months, and loan_amount is the principal. That returns the same EMI as this calculator — but the calculator also builds the full amortization schedule and prepayment savings for you.
Which loans can I use this EMI calculator for?
Any reducing-balance loan — home loan, car loan, personal loan, education loan, business or machinery loan, commercial-vehicle or tractor loan, and Mudra loans. Just enter the loan amount, interest rate and tenure; the EMI formula is the same for every loan type.