EMI Calculator The only calculator you ever need to plan your loans.

Calculate your EMI, model part payments, and see the full amortization schedule. No sign-ups, no hidden conditions.

Part Payment Modelling Real interest cost Full Amortization Schedule PDF & image export

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⚠️ Credit card EMIs incur 18% GST on the interest component.
⚠️ Part payments are not allowed in credit card loans.

💳 Revolving credit card balance? See how long it takes to pay off →

📊 Looking for a Floating interest rate calculator? Click here →

Loan Details

Loan Amount:

₹
₹10,000 ₹1,00,000 ₹50,00,000

Rate of Interest (Reducing):

5% 12.00% 36%

Tenure (Months):

6 24 60

Charges (If applicable)

Results

Monthly EMI

₹0

Total Interest

₹0

Total Payment

₹0

Amortization Schedule

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Understanding Your Loan

The concepts behind the numbers this calculator gives you, explained simply.

What is an EMI, and how is it calculated?

An Equated Monthly Instalment (EMI) is the fixed amount you pay your lender every month until a loan is fully repaid. Each instalment covers two parts: a portion of the amount you borrowed (the principal) and the interest charged on the balance you still owe. The total EMI stays constant every month, but the split changes over time. In the early months most of your EMI goes toward interest; as the outstanding balance falls, more of each payment goes toward the principal.

The EMI Formula

EMI = P × r × (1+r)n ÷ [(1+r)n − 1]

P = principal (loan amount) r = monthly interest rate n = tenure in months

Here r is the monthly interest rate, which is simply your annual rate divided by 12. So a 12% annual rate works out to exactly 1% per month.

A Worked Example

Suppose you borrow ₹5,00,000 at 12% per year for 5 years (60 months). Putting those into the formula gives:

Monthly EMI

₹11,122

Total interest paid

₹1,67,333

Over 60 months you repay ₹6,67,333 in total, of which ₹1,67,333 is interest on top of the ₹5,00,000 you borrowed.

Three things change your EMI:

Principal

A larger loan amount raises your EMI in direct proportion. Double the loan, double the EMI.

Interest Rate

A higher rate increases both your monthly EMI and the total interest you pay across the loan.

Tenure

A longer tenure lowers the monthly EMI but increases total interest, because you owe for longer.

Flat rate vs reducing balance: why it matters

Two lenders can both advertise "12% interest" and yet charge you very different amounts, because they calculate that 12% in different ways. This is the single most important thing to understand before signing a loan.

Under the reducing balance method, interest each month is charged only on the amount you still owe. As you pay down the loan, the balance shrinks, so the interest portion of every EMI gets smaller. This is the method banks and NBFCs use for genuine EMI loans, and it is what this calculator uses.

Under a flat rate, interest is charged on the full original loan amount for the entire tenure, regardless of how much you have already repaid. It sounds simpler, and the headline rate often looks lower, but you end up paying interest even on money you have already given back.

The difference in real numbers

On the same ₹5,00,000 loan at 12% for 5 years, a flat rate charges ₹3,00,000 in interest. Reducing balance charges only ₹1,67,333. That is a difference of more than ₹1,32,000 on a single mid-sized loan, for the exact same headline rate. Always ask a lender which method they use before comparing offers.

What is a part payment, and how does it help?

A part payment (also called part-prepayment) is a lump sum you pay toward your loan over and above your regular EMI. Because interest is charged on your outstanding balance, paying down that balance early means every future month is calculated on a smaller amount, so you save interest for the entire remaining tenure.

When you make a part payment, you usually get two choices: reduce your EMI and keep the same tenure, or keep the same EMI and finish the loan sooner. Keeping the EMI the same and shortening the tenure almost always saves more interest, because you clear the debt faster.

A Worked Example

Take the same ₹5,00,000 loan at 12% for 5 years, with an EMI of ₹11,122. Now imagine you make a one-time ₹1,00,000 part payment after month 6 and keep the EMI unchanged:

Interest saved

₹59,967

Loan finishes

14 months early

Instead of paying ₹1,67,333 in total interest over 60 months, you pay ₹1,07,366 and clear the loan in 46 months. You can simulate exactly this using the part payment option in the schedule above.

One thing to check first: some lenders charge a prepayment penalty, especially on fixed-rate loans. Floating-rate home loans in India usually allow part payments with no penalty, but always confirm the terms with your lender before planning around it.

The costs beyond your EMI

Your EMI is not the only thing you pay. Two common charges add to the real cost of a loan, and both are built into this calculator so your total is realistic.

The processing fee is a one-time charge for handling your application, usually 0.5% to 2% of the loan amount. On a ₹5,00,000 loan, a 1% fee is ₹5,000, deducted upfront so you receive slightly less than the sanctioned amount.

GST at 18% applies on the processing fee itself. For credit card loans specifically, 18% GST also applies on the interest component of every EMI and is added to your monthly statement, which is why credit card borrowing costs noticeably more than a regular personal loan at the same rate.

Our Most Popular Articles

Short reads that put real context behind your numbers

See all articles →
01
Basics

How EMI is Calculated

The reducing balance formula your bank uses, explained with real examples

 02
Interest Rates

Flat Rate vs Reducing Rate

Why the rate that looks cheaper on paper often ends up costing you more

 03
Strategy

Benefits of Part Payment on Your Loan

Why making a part payment early saves far more than making one later

 04
Strategy

Debt Consolidation: Combining Multiple Loans

When merging your loans into one actually helps, and when it quietly costs you more

 05
Basics

Why Your Credit Score Matters When Taking a Loan

Your score does not just affect approval. It directly changes the interest rate you get

Loan & Credit FAQs – Things You Should Know

EMI stands for Equated Monthly Installment. It is the fixed amount a borrower pays back to the lender every month. Each EMI consists of two components: the interest and the principal. The EMI remains the same throughout the entire loan tenure, although the proportion of interest and principal changes over time.

Paying EMIs is not just about clearing your loan; it also helps build your creditworthiness. A consistent repayment history shows lenders that you are disciplined in handling finances, which boosts your credit score. On the other hand, missing EMIs negatively affects your credit score and makes it harder to get loans in the future.

💡 Pro Tip: Always set up auto-debit or reminders for EMI payments to avoid accidental delays.

A credit score is a three-digit number (ranges between 300–900) that reflects your creditworthiness. It is calculated based on factors such as your repayment history, credit utilization, length of credit history, and types of credit. The higher your score, the more trustworthy you appear to lenders. A score above 750 is generally considered good.

💡 Pro Tip: Make it a habit to check your credit score regularly to track your progress and identify areas of improvement.

Every month, a huge amount of data is reported to credit bureaus, and errors can happen. You might see a loan account that you never took, a late payment that you never missed, or even a credit inquiry that you never made. These mistakes can negatively affect your credit score. By checking your score frequently, you can quickly identify such errors and report them to the respective bureau for correction, ensuring your credit profile stays accurate and healthy.

💡 Pro Tip: Use free apps like Paisabazaar, BankBazaar, or OneScore to check your credit report without affecting your score.

In India, there are four major credit bureaus licensed by the RBI:

  • CIBIL (TransUnion CIBIL)
  • Experian
  • Equifax
  • CRIF High Mark

All four bureaus collect and maintain credit data, but your score may differ slightly depending on which bureau’s report is being used.

💡 Pro Tip: Always check your score across all four bureaus at least once a year. Some lenders may rely on one bureau more than others.

Soft enquiry: A soft enquiry happens when you check your own credit score or when a lender makes a background check without processing a loan application. Soft enquiries do not impact your credit score.
Hard enquiry: A hard enquiry happens when you actually apply for a loan or credit card, and the lender checks your credit report to evaluate your eligibility. Multiple hard enquiries within a short period can negatively impact your credit score, as they signal that you may be credit-hungry.

💡 Pro Tip: Always compare loan offers on financial marketplaces first (soft check) before applying directly. This avoids unnecessary hard enquiries.

If you make multiple loan enquiries with different lenders, it shows that you are credit hungry. This lowers your approval chances, as lenders may assume you are struggling financially.

💡 Pro Tip: Instead of applying everywhere, shortlist 1–2 lenders with the best offers and apply strategically.

If you use credit cards, keep your credit utilization below 30% of your total limit. For example, if your card limit is ₹1,00,000, avoid spending more than ₹30,000 before repayment.

High utilization signals to lenders that you are overly dependent on credit, which can:

  • Reduce your chances of getting new loans.
  • Lead to higher interest rates if approved.
  • Lower your credit score.

💡 Pro Tip: Spread your spending across multiple cards or make mid-cycle repayments to keep utilization low.

  • Payment History (35%) – Timely repayment of EMIs and credit card bills is the single most important factor. Even one missed payment can lower your score.
  • Credit Utilization (30%) – The ratio of how much credit you use compared to your total available limit. Keeping utilization below 30% is recommended.
  • Length of Credit History (15%) – The longer your credit accounts have been active, the better. A strong track record shows stability.
  • Credit Mix (10%) – Having a healthy balance of secured loans (like home or car loans) and unsecured loans (like credit cards, personal loans) improves your profile.
  • New Credit / Enquiries (10%) – Multiple hard enquiries or opening too many new accounts in a short period signals credit hunger and can hurt your score.

💡 Pro Tip: Focus on payment history and utilization first — they make up nearly two-thirds of your score!

Handle Credit Wisely

Credit cards, personal loans, and other credit products can be useful tools, but they carry real risks. Lenders make them attractive with rewards and easy approvals. Overspending quietly traps you in debt before you realise it.

1

Spend within your income limits. Always.

2

Borrow only when necessary, not just because you are eligible.

3

Clear credit card dues in full every month. Never revolve the balance.

4

Maintain an emergency fund so you never borrow out of desperation.

5

Keep all EMIs combined below 40% of your monthly take-home income.

💡

Credit should work for you, not against you. The calculator is here to make sure you always know the numbers before you commit.

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