An EMI (equated monthly instalment) is the fixed amount you pay a lender every month. It covers the interest due on the outstanding balance for that month plus a part of the principal, so the balance keeps falling until the loan closes.

How is EMI calculated?

On a monthly reducing balance: 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 months. If the rate is 0%, the EMI is simply the amount divided by the number of months.

Why does my early EMI hardly reduce the principal?

Interest is charged on the outstanding balance, which is highest at the start. So in the first years most of your EMI goes to interest and only a small part reduces the principal. The mix reverses towards the end of the tenure.

Does a longer tenure save money?

No. A longer tenure lowers the EMI but you pay interest for more months, so the total cost rises. Compare tenures side by side before choosing.

Is my loan data sent anywhere?

No. Every calculation on this site runs in your browser. Your loan amount, rate and tenure are never uploaded to a server, and no account is needed.

Why is my bank's EMI slightly different?

Lenders round the EMI, may compute interest daily instead of monthly, and start the first instalment on a specific date. Those differences usually amount to a few rupees a month.

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EMI calculator

Enter your loan amount, interest rate and tenure to get the EMI, total interest, closing date and the full month-by-month schedule. Pick a loan type to start from typical Indian rates and tenures.

Loan type

Your loan details

Loan amount₹

₹35.00 L

Interest rate (per year)%

Monthly reducing balance. 0% is supported.

Tenure (years)yrs

Total tenure: 240 months (20 years)

Extra monthsmo

Use this for tenures like 5 years 6 months.

Pay extra every month (optional)₹

Added to every EMI and applied straight to principal.

Monthly EMI

₹30,930

Loan closes in

20 years

Oct 2046

Total interest

₹39.23 L

₹39,23,170

Total payment

₹74.23 L

Principal ₹35.00 L

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Shared links carry only the loan numbers you entered — never any personal details.

Year-by-year repayment for the plan shown above. Download the CSV for the month-by-month schedule.
Year	Interest	Principal	Balance
Year 1	₹3,03,583	₹67,576	₹34,32,424
Year 2	₹2,97,427	₹73,732	₹33,58,692
Year 3	₹2,90,710	₹80,448	₹32,78,244
Year 4	₹2,83,382	₹87,777	₹31,90,467
Year 5	₹2,75,385	₹95,773	₹30,94,694
Year 6	₹2,66,661	₹1,04,498	₹29,90,196
Year 7	₹2,57,142	₹1,14,017	₹28,76,179
Year 8	₹2,46,755	₹1,24,403	₹27,51,776
Year 9	₹2,35,422	₹1,35,736	₹26,16,040
Year 10	₹2,23,057	₹1,48,101	₹24,67,939
Year 11	₹2,09,566	₹1,61,592	₹23,06,346
Year 12	₹1,94,846	₹1,76,313	₹21,30,034
Year 13	₹1,78,784	₹1,92,374	₹19,37,659
Year 14	₹1,61,260	₹2,09,899	₹17,27,761
Year 15	₹1,42,139	₹2,29,019	₹14,98,741
Year 16	₹1,21,276	₹2,49,882	₹12,48,859
Year 17	₹98,513	₹2,72,645	₹9,76,214
Year 18	₹73,676	₹2,97,482	₹6,78,731
Year 19	₹46,577	₹3,24,582	₹3,54,150
Year 20	₹17,009	₹3,54,150	₹0

Formula and assumptions

This calculator uses the standard monthly reducing-balance formula: EMI = P × r × (1+r)^n / ((1+r)^n − 1). Interest each month is the outstanding principal times the monthly rate, so it falls as the balance falls.

Assumptions: the rate stays fixed for the whole tenure unless you model a balance transfer; the first EMI falls one month after disbursal; extra payments and lump sums reduce the principal in the month you enter them; the final instalment is trimmed so the balance ends at exactly zero; fees are shown separately and never added to the principal.

Values are rounded only for display. The schedule keeps full precision internally, so the summary always matches the sum of the schedule rows.

A worked Indian example

A ₹35,00,000 loan at 8.75% per year for 240 months gives an EMI of about ₹30,930. Total interest works out to roughly ₹39.23 lakh, so you repay about ₹74.23 lakh in all.

Add ₹5,000 to every instalment and the loan closes in about 171 months — 14 years and 3 months — saving close to ₹12.96 lakh of interest. That is the single most effective change most borrowers can make.

Limitations

Floating-rate resets are not predicted; model a known rate change with the balance transfer tool.
Late fees, cheque bounce charges, GST on fees and insurance premiums are excluded.
Lender rounding and daily-interest methods can shift figures slightly.
These are indicative calculations, not a sanction letter or a repayment guarantee.

Frequently asked questions

What is an EMI?: An EMI (equated monthly instalment) is the fixed amount you pay a lender every month. It covers the interest due on the outstanding balance for that month plus a part of the principal, so the balance keeps falling until the loan closes.
How is EMI calculated?: On a monthly reducing balance: 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 months. If the rate is 0%, the EMI is simply the amount divided by the number of months.
Why does my early EMI hardly reduce the principal?: Interest is charged on the outstanding balance, which is highest at the start. So in the first years most of your EMI goes to interest and only a small part reduces the principal. The mix reverses towards the end of the tenure.
Does a longer tenure save money?: No. A longer tenure lowers the EMI but you pay interest for more months, so the total cost rises. Compare tenures side by side before choosing.
Is my loan data sent anywhere?: No. Every calculation on this site runs in your browser. Your loan amount, rate and tenure are never uploaded to a server, and no account is needed.
Why is my bank's EMI slightly different?: Lenders round the EMI, may compute interest daily instead of monthly, and start the first instalment on a specific date. Those differences usually amount to a few rupees a month.

Last reviewed: 1 September 2026

ByeToEMI provides indicative calculations for educational and planning purposes. Actual lender calculations, charges, interest-rate changes and repayment schedules may differ. ByeToEMI is not a lender, loan broker or financial advisor.