Loan / EMI Calculator

EMI (Equated Monthly Installment) is the fixed amount you pay to the lender every month. It's calculated using the formula: EMI = P × r × (1+r)^n / ((1+r)^n – 1), where P is the principal, r is the monthly interest rate, and n is the number of months.

Making extra payments typically reduces the loan tenure (number of months remaining) rather than the EMI amount. Use our Extra Payment Calculator to see exactly how much time and interest you save by paying more each month.

An amortization schedule shows the breakdown of each payment into principal and interest for every month of the loan. Early payments are mostly interest; later payments are mostly principal. The table below the results shows your complete schedule.

The model assumes every scheduled payment is made on time; it does not calculate missed-payment charges or credit effects. If a payment may be missed, ask the lender what options and charges apply to the actual agreement.

Flat rate interest is calculated on the original principal for the entire term, making the effective rate much higher than the quoted rate. Reducing balance (or diminishing balance) interest — which this calculator uses — charges interest only on the remaining balance each month. A 10% flat rate loan costs significantly more than a 10% reducing balance loan. Always ask your lender which method they use.

For $25,000 at 9.5%, the five-year model gives $525.05 per month and $6,502.79 interest. Over ten years it gives $323.49 per month and $13,819.27 interest. The longer term lowers the payment but increases total interest. Fees and penalties are excluded.