EMI / Loan Calculator
Calculate loan EMI with the reducing-balance method.
| Year | Principal | Interest | Balance |
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How to use this tool
Enter loan details
Loan amount, annual interest rate, and tenure in years or months.
Hit Calculate
Your monthly EMI appears with total interest and total payable.
Study the breakdown
Yearly amortization shows how principal and interest shift over time.
Frequently asked questions
How is EMI calculated?
EMI = P × r × (1+r)^n / ((1+r)^n − 1), where P is the loan amount, r the monthly interest rate, and n the number of payments. This is the standard reducing-balance method banks use.
What is the reducing-balance method?
Interest each month is charged only on the remaining balance — not the original loan. So early payments are mostly interest, later ones mostly principal.
What if the interest rate is 0%?
Then there is no interest to spread — your EMI is simply the loan amount divided by the number of months.
Does a longer tenure always help?
It lowers the monthly EMI but raises total interest paid. Compare the total-payable figure when choosing.
Is this financial advice?
No — this is an estimate for planning. Actual loan terms, fees, and rounding vary by lender.