EMI calculator
Work out the monthly EMI for a business, shop, home, vehicle or personal loan, with the total interest and a year-by-year repayment table.
| Year | Principal paid | Interest paid | Balance left |
|---|
| Year 1 | ₹80,253 | ₹48,711 | ₹4,19,747 |
| Year 2 | ₹89,097 | ₹39,867 | ₹3,30,651 |
| Year 3 | ₹98,916 | ₹30,048 | ₹2,31,735 |
| Year 4 | ₹1,09,816 | ₹19,147 | ₹1,21,919 |
| Year 5 | ₹1,21,919 | ₹7,045 | ₹0 |
What is an EMI?
An EMI (Equated Monthly Instalment) is the fixed amount you pay the lender every month until the loan is repaid. Each EMI has two parts: interest on the balance still owed, and principal that reduces the balance.
In the early months most of the EMI is interest. As the balance falls, more of each EMI goes to the principal. The year-by-year table shows this.
How to use this EMI calculator
- Type the loan amount.
- Type the yearly interest rate from the lender.
- Type the tenure and pick years or months.
- See the EMI, the total interest and the yearly table.
How to pay less interest
- Choose a shorter tenure: the EMI is higher but the total interest is much lower.
- Make part-prepayments when you have spare cash; they cut the balance directly.
- Compare the rate and the processing fee across lenders.
EMI formula
EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), where r is the monthly rate (annual rate ÷ 12 ÷ 100) and n is the months.
₹1,00,000 at 12% for 12 months = ₹8,884.88Total interest
EMI × Months − Loan amount.
₹8,884.88 × 12 − ₹1,00,000 = ₹6,618.55An estimate on a fixed rate. Your lender’s schedule can differ slightly with the first EMI date and rounding.
Know your shop can carry the EMI
Billman’s Profit & Loss, cash flow and expense reports show what your shop really earns each month, next to your GST billing and stock.
Profit & Loss and cash flow in Billman →Questions
EMI calculator FAQ
How is EMI calculated?
With the reducing-balance formula P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1). For ₹1,00,000 at 12% a year for 12 months, the EMI is ₹8,884.88.
Does a longer tenure save money?
No. It lowers the EMI but raises the total interest you pay.
Are processing fees included?
No. Add the lender’s processing fee and any insurance to the cost of the loan.
Can I use this for a business loan?
Yes. It works for any loan with a fixed rate and monthly EMIs: business, shop, vehicle, home or personal.
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