Loan & EMI Calculator
Calculate your monthly installment (EMI), total interest, and view the complete amortization schedule for your loan.
How Amortization Works
When you take out a loan (be it a mortgage, auto loan, or personal loan), your monthly payment is fixed. However, the internal structure of that payment changes drastically over time. This is called amortization.
In the initial years of your loan, a massive portion of your EMI goes directly toward paying the interest, while only a tiny fraction reduces the principal balance. As you continue making payments month after month, this ratio flips. The interest component decreases because your principal is smaller, and the principal component of your payment increases.
By viewing the Amortization Schedule table above, you can pinpoint exactly how much you are paying to the bank in interest versus how much you are actually paying down your debt in any given month.
Frequently Asked Questions
What is an EMI?
Equated Monthly Installment (EMI) is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. EMIs are applied to both interest and principal each month so that over a specified number of years, the loan is paid off in full.
How is the EMI calculated mathematically?
The mathematical formula for calculating EMI is: EMI = [P x R x (1+R)^N] / [(1+R)^N - 1]. Where P stands for the Principal loan amount, R is the monthly interest rate, and N is the number of monthly installments.
What is an amortization schedule?
An amortization schedule is a complete table of periodic loan payments, showing the amount of principal and the amount of interest that comprise each payment until the loan is paid off at the end of its term.