The Equated Monthly Instalment is calculated as:

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

where P is the principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the tenure in months.

Although your EMI stays the same each month, its make-up changes. Early on, the outstanding balance is large, so most of the EMI is interest. As you repay, the balance falls and more of each EMI goes to principal. This is reducing-balance interest.

A higher rate increases both the EMI and the total interest. Even a small change in rate can add up over a long tenure — try nudging the rate slider to see how sensitive your repayment is.

A longer tenure lowers the monthly EMI, which helps affordability, but because you owe money for longer it raises the total interest paid. A shorter tenure does the opposite. Balancing monthly comfort against total cost is the key trade-off.

This calculator models a standard reducing-balance EMI. It does not account for prepayments, rate resets on floating loans, or moratoriums. Use it to compare offers on a consistent basis, then confirm the exact figures with your lender.