EMI calculator

The standard EMI formula is:

EMI = P · r · (1+r)^n / ((1+r)^n − 1)

• P — principal (loan amount)
• r — monthly interest rate as a decimal (annual rate ÷ 12 ÷ 100). A 9% annual rate gives r = 0.0075.
• n — tenure in months. A 20-year loan has n = 240.

This is reducing-balance EMI — interest each month is computed on the outstanding principal, which falls every month. The same formula is used by every Indian bank (SBI, HDFC, ICICI, Axis, etc.), every US mortgage lender, and every UK/EU consumer-loan provider for fixed-rate loans.

Early in the loan, interest dominates each EMI; later, principal does. For a ₹50 lakh home loan at 8.5% over 20 years (EMI ≈ ₹43,391):

• Month 1: interest ≈ ₹35,417, principal ≈ ₹7,974
• Year 5 end: ~85% of remaining principal still owed
• Year 10 end: ~65% of remaining principal still owed
• Year 15 end: ~38% of remaining principal still owed
• Total interest paid over 20 years: ~₹54.1 lakh — more than the principal itself

This is why prepayments in the first 5–7 years of a long loan have outsized impact: a ₹1 lakh prepayment in year 2 saves far more total interest than the same ₹1 lakh in year 15.

This calculator uses reducing balance, the only honest way to quote loan interest. Some lenders (especially small NBFCs and gold-loan vendors) quote flat rate — interest computed on the original principal for the entire tenure, which roughly doubles the effective rate.

A "flat 10% for 5 years" loan is closer to a reducing-balance 18.7%. Always demand the reducing-balance rate (or compute the EMI yourself with this tool) when comparing offers — the two numbers are not comparable directly.

If you prepay a lump sum, banks usually offer two choices:

• Reduce tenure — keep the EMI the same, finish the loan earlier. Usually saves more interest.
• Reduce EMI — keep the tenure the same, lower the monthly burden. Better for cash flow.

RBI has prohibited prepayment penalties on floating-rate home loans since 2012, and on floating-rate personal loans since 2014. Fixed-rate loans may still have prepayment charges (typically 2–5% of the outstanding amount). Check your loan agreement before prepaying.

Educational only — not financial advice. Loan structures, prepayment rules and taxation differ across lenders and countries. Talk to a qualified advisor for a decision that matches your full situation.

Use this tool for quick planning, comparison, and what-if finance scenarios. Use official calculators, a qualified adviser, or source documents before filing taxes, signing contracts, or making irreversible money decisions.

1. Enter loan details — Type your loan principal, the annual interest rate (e.g. 8.5 for 8.5% p.a.), and the tenure in years or months.
2. Pick a currency — Switch between INR, USD, EUR and GBP. Indian Rupee uses the lakhs/crores grouping by default.
3. Read the breakdown — See your monthly EMI, total interest paid over the life of the loan, and a year-by-year or month-by-month amortization schedule.

• Confirm rates, compounding frequency, tax year, dates, and rounding before acting on the result.
• Fees, penalties, inflation, and local rules can make real outcomes differ from simple formulas.
• Treat results as guidance, not financial, tax, legal, or investment advice.

Your money amounts, rates, dates, and calculated scenarios stay in the browser. EpitomeTool does not upload finance inputs or generated results to a server.