Why is my bank's EMI a few rupees different from mine?

Rounding. Lenders round the instalment and true up the final payment against the residual balance, which is why the last month of a schedule looks lopsided. A difference of one or two is normal; a difference of hundreds means a different rate, tenure or fee assumption.

Why is my EMI almost all interest in the early years?

Interest in any month is the rate times the previous balance, and the balance starts at its maximum. On a 20-year loan at 8.5% the first year is about 81% interest. The only way to change the shape of that is to attack the balance early, which is what prepayment does.

Finance & Loansloans

EMI Calculator

Work out the EMI on any loan, see the full month-by-month schedule, and find out how much of your money goes to interest rather than to the debt.

Also called: loan calculator, installment calculator, instalment calculator, equated monthly instalment.

Loan amount₹10,00,000

₹

Type "50 lakh", "1.2 crore" or "250k", all of them parse.

Interest rate (per year)

Tenure

years

Payment frequency

Paying quarterly or yearly instead of monthly changes the interest, not just the instalment.

Instalment frequency

Fewer, larger instalments means the balance sits higher for longer, so total interest rises even though each payment covers more principal.

Prepayments and extra payments

A lump sum, a standing extra amount, or both. The schedule and the saving are recomputed against them.

Extra paid with every instalment

₹

A standing amount on top of the instalment. This is what a "round up my EMI" plan does.

One-off prepayment

₹

Paid after this many instalments

Leave at 0 if you are not making a lump-sum prepayment.

Fees and ongoing charges

Processing fees raise your effective rate; insurance and maintenance raise your real monthly outgo.

Processing and other up-front fees

₹

Deducted from what you receive but charged on the full loan, so they raise your APR without changing the instalment.

Insurance, maintenance or other monthly charges

₹

Not part of the loan, but part of what leaves your account each month.

Interest-only period before repayment

Months before repayment starts, and whether the interest accruing in them is capitalised. The same arithmetic covers a study-period holiday, a deferment and a payment pause.

Interest-only months before repayment starts

I will pay the interest during that period

If you do not, it is added to the loan, which is why an education loan is often larger when repayment begins than the amount that was disbursed.

Monthly instalment

₹21,494

₹21,494 a month for 5 years. Over the full term you repay ₹12,89,634, of which ₹2,89,634 is interest. 28.96% of what you borrowed.

Total interest

₹2,89,634

Total repayment

₹12,89,634

Interest as % of principal

28.96%

Interest in period 1

₹8,750

Principal in period 1

₹12,744

How this is calculated

An estimate, not an offer or a guarantee. Projected returns assume the rate you entered holds for the whole term, which no market does.

Where your money goes

Principal ₹10,00,000 (78%)Interest ₹2,89,634 (22%)

Outstanding balance

Hover or drag for values

Outstanding balance

60 rows

Month	Payment	Interest	Principal	Balance
1	₹21,494	₹8,750	₹12,744	₹9,87,256
2	₹21,494	₹8,638	₹12,855	₹9,74,401
3	₹21,494	₹8,526	₹12,968	₹9,61,433
4	₹21,494	₹8,413	₹13,081	₹9,48,351
5	₹21,494	₹8,298	₹13,196	₹9,35,156
6	₹21,494	₹8,183	₹13,311	₹9,21,844
7	₹21,494	₹8,066	₹13,428	₹9,08,417
8	₹21,494	₹7,949	₹13,545	₹8,94,871
9	₹21,494	₹7,830	₹13,664	₹8,81,208
10	₹21,494	₹7,711	₹13,783	₹8,67,424
11	₹21,494	₹7,590	₹13,904	₹8,53,520
12	₹21,494	₹7,468	₹14,026	₹8,39,495

Method and background

This is what the calculation gives for the numbers you entered. It is an estimate, not advice, and it knows nothing about your situation beyond those numbers. Rules for India change on a published schedule; the effective date is shown on every rule-based tool.

How this is calculated

An EMI does two jobs at once: it pays the interest that accrued this month, and it repays some principal. Because the principal shrinks, next month's interest is smaller, so more of the identical payment goes to principal. The formula answers one question. What fixed payment, repeated n times, drives the balance to exactly zero?

E = P * i * (1+i)^n / ((1+i)^n - 1)

E: The equal periodic instalment (currency)
P: Principal: the amount borrowed (currency)
i: Monthly interest rate = annual rate ÷ 12 ÷ 100 (decimal)
n: Total number of monthly instalments (months)

Full derivation: The annuity payment, derived from scratch

Worked examples

Each of these is asserted on every build. If a change to the engine ever moved one of these answers, the build would fail before the page could print it.

standard 50L at 8.5% for 20 years

Loan amount: ₹50,00,000
Interest rate (per year): 8.5%
Tenure: 20 years

Monthly instalment₹43,391

closed-form annuity formula, cross-checked against Excel PMT(8.5%/12, 240, -5000000)

Open this example

zero interest reduces to P/n

Loan amount: ₹12,00,000
Interest rate (per year): 0%
Tenure: 10 years

Monthly instalment₹10,000

limit of the annuity formula as i approaches 0 (DRV-001 sanity check)

Open this example

single instalment reduces to P(1+i)

Loan amount: ₹1,00,000
Interest rate (per year): 12%
Tenure: 0.08 years

Monthly instalment₹1,01,000

n=1 reduction of the annuity formula (DRV-001 sanity check)

Open this example

an extra 5,000 a month shortens the term and saves interest

Loan amount: ₹50,00,000
Interest rate (per year): 8.5%
Tenure: 20 years
Instalment frequency: Monthly
Extra paid with every instalment: ₹5,000

Monthly instalment₹43,391

independently reproduced by iterating the balance recursion in Python: 240 months becomes 187

Open this example

Written about this

A 10% flat rate is a 17.3% loan · 2 min · Flat rate and reducing balance are two ways of quoting interest, and they are not close. On a five year loan a 10% flat rate costs the same as 17.3% reducing.
The EMI formula, in plain English · 2 min · Where the EMI formula comes from, what each part of it does, and how to reproduce it in a spreadsheet in one line.

Method and limits

What it assumes

Interest compounds monthly on the reducing balance.
The rate stays fixed for the whole term. Floating-rate loans reset periodically.
Processing fees, insurance and statutory charges are excluded.

What it deliberately does not model

Does not model rate resets on floating-rate loans. Most lenders hold the instalment steady and extend the term instead, so a rate rise can add years without changing what leaves your account each month.
Does not include property insurance, maintenance or association dues, or any lender fee.
Assumes every instalment is paid in full and on time.

Formula version 1.0.0 · definition 1.0.0 · India · Report a problem with this calculator

Frequently asked questions

Why is my bank's EMI a few rupees different from mine?: Rounding. Lenders round the instalment and true up the final payment against the residual balance, which is why the last month of a schedule looks lopsided. A difference of one or two is normal; a difference of hundreds means a different rate, tenure or fee assumption.
Why is my EMI almost all interest in the early years?: Interest in any month is the rate times the previous balance, and the balance starts at its maximum. On a 20-year loan at 8.5% the first year is about 81% interest. The only way to change the shape of that is to attack the balance early, which is what prepayment does.