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LOANS CALCULATOR

EMI Calculator

Calculate the equated monthly installment for a reducing-balance loan. See how principal, interest, and an optional processing fee contribute to the overall cost.

Calculator

%
months
Advanced options
%
YOUR RESULTS
Monthly EMI10,138.20
Principal
500,000.00
Total interest
108,291.83
Processing fee
5,000.00
Total cost
613,291.83

The EMI is a level monthly payment across 60 months. The processing fee is shown separately and is not financed.

Remaining loan balance by year

Amounts use the same currency as your inputs.

Remaining balance
0207.6K415.3K12345Year

Year 5

Principal paid in year
116,546.50
Interest paid in year
5,111.86
Remaining balance
0.00

Each point shows the remaining balance after payments for that year. The final year may contain fewer than 12 payments.

Total repayment costs

  • Principal500,000.00
  • Total interest108,291.83
  • Processing fee5,000.00

The processing fee is paid separately and is not financed.

Annual repayment summary
Annual repayment summary
YearPrincipal paid in yearInterest paid in yearRemaining balance
184,720.0536,938.31415,279.95
291,751.7729,906.59323,528.18
399,367.1322,291.24224,161.05
4107,614.5514,043.82116,546.50
5116,546.505,111.860.00

Understanding your result

EMI is the level payment needed to reduce the modeled balance to zero over the selected number of months. The processing fee is shown separately rather than added to the loan.

To see how extra monthly payments change repayment time and interest, use the Loan Calculator with the same principal, rate, and term.

The formula

EMI = P × r × (1 + r)ⁿ ÷ [(1 + r)ⁿ − 1]

P is principal, r is the monthly rate, and n is tenure in months. At a zero rate, EMI equals principal divided by n. Interest is recalculated from the remaining balance each month.

500,000 over 60 months at 8%

Using an 8% nominal annual rate divided monthly, the EMI is about 10,138.20. A 1% processing fee adds 5,000 outside the repayment schedule.

How to use this calculator

  1. Enter principal, annual rate, and tenure in months.
  2. Add the stated processing-fee percentage if relevant.
  3. Calculate to see EMI, interest, fee, and the repayment summary.

EMI and reducing balance

EMI describes a fixed recurring installment. Each installment pays the month’s interest first and then reduces principal.

The term is used for home, vehicle, education, and personal loans.

Fees change the effective cost

A processing fee increases the amount you spend even when it is not part of EMI.

Taxes on fees, insurance, advance installments, and prepayment conditions can also matter.

Assumptions & limitations

What this calculation assumes

  • A fixed nominal annual rate divided into monthly periods.
  • EMIs occur at the end of each month.
  • The processing fee is paid separately.

What to keep in mind

  • Taxes, insurance, penalties, and changing rates are excluded.
  • Some lenders use different accrual or rounding conventions.
  • The calculation does not determine eligibility.

Common questions

Is EMI the same as a monthly loan payment?

For a standard reducing-balance loan, both refer to a level monthly installment.

What happens at 0% interest?

Principal is divided equally across the selected months.

Does a processing fee reduce principal?

This calculator treats it as a separate upfront cost.

Sources & further reading