Loan EMI Calculator
Work out the monthly payment, total interest and repayment schedule for a reducing-balance or flat-rate loan.
Interest is charged on the balance still owed, so it falls as you repay.
12 monthly payments
Monthly payment
8,884.88
Yearly repayment summary
Select a year to see its monthly breakdown.
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 100,000.00 | 6,618.55 | 0.00 |
Amounts are shown without a currency symbol, so you can use any currency.
How to use this calculator
Enter the loan amount, the interest rate per year and the tenure in years or months. Choose whether the rate is a reducing-balance rate or a flat rate. The monthly payment, total interest and total paid update as you type, and the yearly summary shows how much principal and interest you repay each year. Select a year to see each month.
How the calculation works
Reducing balance: EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1), where P is the loan amount, r is the yearly rate ÷ 12 ÷ 100 and n is the number of months. At 0% interest the EMI is simply P ÷ n. Example: 100,000 at 12% over 12 months gives a monthly payment of 8,884.88.
Flat rate: total interest = P × yearly rate × years, and the monthly payment is (P + total interest) ÷ n. Example: 100,000 at 5% flat over 3 years gives 15,000 interest and a monthly payment of 3,194.44.
For a flat-rate loan, the calculator also finds the reducing-balance rate that gives the same monthly payment. It narrows the rate down step by step (bisection) until it is accurate to 0.01%.
Scope and common mistakes
The calculator assumes a fixed rate, equal monthly payments and no fees, insurance or early repayments. It does not know any lender's rates or terms.
- Comparing a flat rate with a reducing-balance rate directly. Use the equivalent rate instead.
- Entering a monthly rate in the yearly rate field.
- Forgetting fees and charges that are added to the amount you borrow.
What is an EMI?
EMI stands for equated monthly instalment: the same payment every month that covers both interest and part of the amount borrowed, so the loan is fully repaid by the end of the tenure.
What is the difference between a flat rate and a reducing-balance rate?
A reducing-balance rate charges interest only on the amount you still owe, so the interest part of each payment shrinks over time. A flat rate charges interest on the full original amount for the whole tenure. For the same quoted rate, a flat-rate loan costs more.
What does the equivalent reducing-balance rate mean?
It is the reducing-balance rate that would give exactly the same monthly payment as the flat-rate loan you entered. It lets you compare a flat-rate offer with a reducing-balance offer on the same basis.
Why is my lender's figure slightly different?
Lenders may add fees, insurance or processing charges, count days differently, or round each payment. This calculator uses the standard formulas only, so treat the result as an estimate and check the lender's own schedule.
Can I use this calculator for any currency?
Yes. Amounts are shown without a currency symbol, so enter the loan amount in whatever currency the loan is in and read the results in the same currency.