The instalment
Level, by constructionThe same amount every month, chosen so that the balance reaches zero on the last one. Raise the rate or shorten the tenure and it goes up. Lengthen the tenure and it comes down, while the total interest goes up.
EMI & amortisation calculator
Your monthly loan payment, the total interest and the full schedule.
Result
₹50,00,000.00 at 8.5% over 240 months is an EMI of ₹43,391.16. The interest over the whole loan is ₹54,13,879.44.
Monthly instalment (EMI)₹43,391.16level, at the rate you entered
Total interest₹54,13,879.44108.28% of the amount borrowed
Total payment₹1,04,13,879.44principal + interest
Schedule length20 years240 instalments
What this loan costs in total
- Amount borrowed · principal repaid over the schedule₹50,00,000.00
- Monthly instalment · level, at the rate you entered₹43,391.16
- Interest over the whole schedule · 108.28% of the amount borrowed₹54,13,879.44
- Total you repay · principal + interest₹1,04,13,879.44
Computed to the paise across every instalment, with the final one clearing the balance exactly — which is why the totals here carry paise and the yearly table below is rounded to the rupee.
What the prepayment does
Enter a lump sum or a monthly extra above and this box fills in with the two figures that change: how many months come off the schedule, and how much less interest the schedule carries.
The instalment is rounded to paise, so the last one differs: 240 instalments in total, the final one ₹43,392.20 instead of ₹43,391.16. That last instalment clears the balance exactly.
Interest and principal, year by year
How much of each year's payments is interest?
Early years are mostly interest, and later years mostly pay back the loan itself.
- Loan paid back
- Interest
- Loan still owed
How much of each year's payments is interest? Early years are mostly interest, and later years mostly pay back the loan itself.
Year 20 · Interest ₹23,201.83 · Loan paid back ₹4,97,493.13 · Still owed ₹0.00
Early instalments are mostly interest because interest is charged on a balance that has barely moved. As the balance falls, the same instalment carries more principal — the point where the two bands cross is where that happens on the figures entered.
Amortisation schedule
| Year / month | Opening balance | Paid | Interest | Principal | Prepaid | Closing balance |
|---|---|---|---|---|---|---|
| ₹50,00,000 | ₹5,20,694 | ₹4,21,182 | ₹99,511 | — | ₹49,00,489 | |
| ₹49,00,489 | ₹5,20,694 | ₹4,12,387 | ₹1,08,307 | — | ₹47,92,181 | |
| ₹47,92,181 | ₹5,20,694 | ₹4,02,813 | ₹1,17,881 | — | ₹46,74,300 | |
| ₹46,74,300 | ₹5,20,694 | ₹3,92,394 | ₹1,28,300 | — | ₹45,46,000 | |
| ₹45,46,000 | ₹5,20,694 | ₹3,81,053 | ₹1,39,641 | — | ₹44,06,359 | |
| ₹44,06,359 | ₹5,20,694 | ₹3,68,710 | ₹1,51,984 | — | ₹42,54,375 | |
| ₹42,54,375 | ₹5,20,694 | ₹3,55,276 | ₹1,65,418 | — | ₹40,88,958 | |
| ₹40,88,958 | ₹5,20,694 | ₹3,40,655 | ₹1,80,039 | — | ₹39,08,918 | |
| ₹39,08,918 | ₹5,20,694 | ₹3,24,741 | ₹1,95,953 | — | ₹37,12,965 | |
| ₹37,12,965 | ₹5,20,694 | ₹3,07,420 | ₹2,13,274 | — | ₹34,99,691 | |
| ₹34,99,691 | ₹5,20,694 | ₹2,88,569 | ₹2,32,125 | — | ₹32,67,566 | |
| ₹32,67,566 | ₹5,20,694 | ₹2,68,051 | ₹2,52,643 | — | ₹30,14,924 | |
| ₹30,14,924 | ₹5,20,694 | ₹2,45,720 | ₹2,74,974 | — | ₹27,39,949 | |
| ₹27,39,949 | ₹5,20,694 | ₹2,21,415 | ₹2,99,279 | — | ₹24,40,670 | |
| ₹24,40,670 | ₹5,20,694 | ₹1,94,961 | ₹3,25,733 | — | ₹21,14,937 | |
| ₹21,14,937 | ₹5,20,694 | ₹1,66,169 | ₹3,54,525 | — | ₹17,60,412 | |
| ₹17,60,412 | ₹5,20,694 | ₹1,34,832 | ₹3,85,862 | — | ₹13,74,551 | |
| ₹13,74,551 | ₹5,20,694 | ₹1,00,726 | ₹4,19,968 | — | ₹9,54,583 | |
| ₹9,54,583 | ₹5,20,694 | ₹63,604 | ₹4,57,090 | — | ₹4,97,493 | |
| ₹4,97,493 | ₹5,20,695 | ₹23,202 | ₹4,97,493 | — | ₹0 |
Formula: EMI = P·i·(1+i)ⁿ ÷ ((1+i)ⁿ − 1), i = annual rate ÷ 1200, n = months. The whole schedule is computed in whole paise. The final instalment clears the balance exactly.
Each file lists the source and the check date for every rate. The CSV comes as two files, the figures and their sources.
The link carries only these inputs. Saved inputs stay in this browser only, and are off until you turn them on.
Try one change
Each button changes exactly one input and says what that did to the headline figure. Reset undoes it.
An EMI is one fixed monthly payment that covers both interest and repayment of the loan. Early instalments are mostly interest, and later ones mostly principal. That is why a lump sum paid early saves far more than the same amount paid late. Enter an amount, a rate and a tenure. This shows the instalment, the total interest, and the month-by-month schedule behind them.
What this calculator does and does not do
What this calculator does
- Gives the instalment, the total interest and the full month-by-month schedule for a reducing-balance loan.
- Shows what a lump-sum prepayment or a higher monthly payment saves, in months and in interest.
- Splits every instalment into interest and principal, which is what makes the early years look so slow.
What it does not do
- Include processing fees, insurance, or any charge a lender adds outside the interest rate.
- Model a floating rate that moves during the term, or a lender's own rounding of the instalment.
- Say whether a loan is affordable, or whether prepaying is the best use of the money.
Show the method and assumptions
The method
- EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1).
- P is the loan amount, r is the yearly rate ÷ 12 and n is the number of months.
- Each month's interest is charged on the balance still owed.
- A prepayment keeps the EMI the same and shortens the loan.
What it assumes
- The rate stays fixed for the whole loan.
- One payment is made each month, on time.
Sources, effective dates and exclusions
- Calculated on
- today
No published rate or date goes into this sum. Every figure is one you type.
Not included
- Changes to a floating loan rate.
- Lender fees, insurance and other loan charges.
What could change this?
- The rate. It is the lender's figure and is applied as a fixed rate for the whole tenure. A floating-rate reset is not modelled.
- The tenure. Lengthening it lowers the instalment and raises the total interest — both are shown for that reason.
- A prepayment and its month. Early prepayments save the most because the principal, and so the interest, is largest then. The instalment stays the same, and the tenure shortens.
- Lender charges. Processing fees, insurance and penalties sit outside the interest rate and outside this calculator.
Rates built inNonethe interest rate is yours to enter
Schedule computed inWhole paiseno floating-point residue
Balance after the last instalment₹0.00exactly, in every schedule
What the calculator does
It applies the standard reducing-balance identity. The monthly rate is the annual rate you entered divided by 1200. The instalment is the level amount that clears the balance in the number of months you entered. Each month splits that instalment into two parts: interest on the opening balance, and principal, which is whatever is left. Repeat for every month and you have the schedule.
Nothing is fetched and nothing is assumed. There is no lending rate, tax rate or fee schedule inside this tool. The only figures it uses are the ones in the boxes above. That is why two people entering different rates get different answers, and neither is being quoted a rate by this site.
Why the first years feel slow
Interest is charged on the balance at the start of each month. The first instalment is therefore mostly interest, and barely dents the amount borrowed. That instalment is level, so every rupee of principal repaid makes the next month's interest slightly smaller. That leaves slightly more of the same instalment for principal. The effect compounds, so the balance falls slowly at first and then quickly.
The chart in the results panel draws exactly that. You see the interest band shrinking and the principal band growing under a flat total.
The last instalment, and the ₹0.03 problem
An instalment has to be a round number of paise, so repeating it for the whole tenure almost never lands on precisely zero. Schedules that ignore this leave a few paise outstanding after the final row. This one runs the entire schedule in whole paise. It settles the residue in the final instalment, exactly as a lender's system does.
When the last instalment differs from the level EMI, the results panel says so and prints both figures. The closing balance after it is zero — not a rounded zero.
Reading the four moving parts
The interest part
Falls every monthCharged on the balance outstanding at the start of the month. It is largest in month one and smallest in the last month. The balance it is charged on keeps shrinking.
The principal part
Rises every monthWhatever is left of the instalment after the interest. It grows month by month, which is why the balance falls slowly at first and quickly at the end.
A prepayment
Applied as fewer monthsReduces the balance directly, so every later month is charged interest on a smaller figure. The instalment stays where it is and the schedule ends earlier.
Worked example
Every figure below comes from the same sums the calculator above runs. It uses one set of inputs: ₹50,00,000 borrowed at 8.5% a year for 240 months. That rate is a number typed into the example. It is not a rate quoted, observed or published by this site.
Without any prepayment
The level instalment works out to ₹43,391.16 a month. Over 240 instalments the interest adds up to ₹54,13,879.44 — 108.28% of the amount borrowed — so ₹1,04,13,879.44 leaves the borrower's hands in total. Paise rounding means the last instalment is ₹43,392.20 rather than ₹43,391.16, and it closes the balance exactly.
- Monthly instalment
- ₹43,391.16
- Total interest
- ₹54,13,879.44108.28% of the amount borrowed
- Total payment
- ₹1,04,13,879.44principal + interest
With one lump sum of ₹5,00,000 in month 12
The same loan, with a single extra payment after the 12th instalment and the instalment itself left unchanged, runs for 192 months instead of 240 — 48 months shorter — and carries ₹38,10,188.54 of interest instead of ₹54,13,879.44. That is ₹16,03,690.90 less interest for ₹5,00,000 paid early, on these figures. Whether that trade is worth making depends on circumstances this calculator knows nothing about.
- Schedule shortens by
- 48 months240 → 192 instalments
- Interest falls by
- ₹16,03,690.90₹54,13,879.44 → ₹38,10,188.54
- Paid early
- ₹5,00,000.00on top of the instalments
Change any input in the calculator above and the same arithmetic runs on your figures. If you also want to see what a trade in the market costs after charges, that is the trade cost calculator.
Method & provenance. Instalments use the standard annuity identity on a monthly reducing balance, EMI = P·i·(1+i)n ÷ ((1+i)n − 1) with i = annual rate ÷ 1200 and n in months. The zero-rate case is the amount divided by the number of months. Conventions last checked 2026-09-04. No interest rate, tax rate or fee is embedded in this tool. The rate, amount, tenure and prepayment come from your inputs. The schedule uses whole paise. Its final instalment clears the rounding residue, leaving exactly zero. Lender charges, insurance, prepayment conditions and any taxes on them are excluded. Check your sanction letter and the lender's charges. Loans and their terms remain matters between you and your lender.
Common mistakes
- Reading the EMI as the cost of the loan. The instalment is fixed. The cost is the total interest, which the schedule shows month by month and which a prepayment reduces.
- Assuming a prepayment shortens the tenure. It does only if the lender applies it that way. The alternative keeps the tenure and reduces the instalment, and the two outcomes differ in total interest.
- Treating the reducing-balance rate as a flat rate. A flat rate quoted on the original principal is a much higher reducing-balance rate. The two are not comparable without conversion.
EMI calculator FAQ
How is EMI calculated?
EMI = P × i × (1+i)^n ÷ ((1+i)^n − 1), where P is the amount borrowed, i is the annual interest rate divided by 1200 (the monthly rate) and n is the number of months. At a zero rate, divide the amount borrowed by the number of months.
Why is so much of an early instalment interest?
Interest each month is charged on the balance outstanding at the start of that month. In month one almost nothing has been repaid. Almost the whole balance therefore attracts interest, and only the remainder of the instalment reduces the principal. As the balance falls, the interest portion falls with it. The same instalment then carries more principal.
Does the last instalment equal all the others?
Usually not exactly. The instalment is rounded to paise, so repeating it for the whole tenure leaves a small residue. This calculator settles that residue in the last instalment, which is what a lender's system does. It prints the final instalment separately whenever it differs from the level EMI. The closing balance after it is exactly zero.
What does a prepayment change here?
This calculator applies a prepayment as a shorter tenure, with the instalment left unchanged. The balance drops, so fewer instalments are needed to clear it. It reports the two figures that change. Those are how many months come off the schedule, and how much less interest the schedule carries. Keeping the tenure and reducing the instalment instead is a different arrangement, and is not modelled.
Are lender charges included?
No. The arithmetic covers principal and interest only. Processing fees, insurance, documentation charges and prepayment conditions vary by lender and by product, as do any taxes on those charges. None of them is assumed here. Read them off the sanction letter or the lender's schedule of charges.
Where to go from here
Learn the ideaDrawdown Recovery: Why a 33% Loss Needs a 50% Gain
No lesson here teaches amortisation yet, but this teaches the mechanism underneath it: a rate applied to the balance that is left rather than to the amount you began with. That is exactly why the early instalments are almost all interest.
Read the lesson Then thisFD, RD & PPF calculatorThe same compounding running the other way — what a deposit earns, under each of the three conventions Indian savers actually meet.
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