Calculate your loan EMI with detailed amortization schedule
An Equated Monthly Instalment (EMI) is the fixed monthly amount you pay to a lender to repay a loan over a set period. The word "equated" is important — your payment stays the same every month, but the portion going towards interest decreases while the portion repaying principal increases with each instalment.
EMIs apply to all common loan types: home loans (mortgages), car loans, personal loans, and education loans. Understanding how your EMI is calculated gives you the knowledge to compare loan offers, plan your budget, and minimise the total interest you pay over the life of the loan.
EMI = P × r × (1 + r)ⁿ ÷ [(1 + r)ⁿ − 1]
This is the standard reducing-balance formula used by all banks and financial institutions worldwide. Our EMI calculator applies this formula instantly and also generates a complete amortisation schedule so you can see exactly how much of each payment is interest versus principal repayment.
Type the total amount you want to borrow — for example, £150,000 for a home loan or £8,000 for a personal loan.
Enter the annual interest rate offered by your lender, and the loan term in years (e.g. 5, 10, 20, or 25 years).
The calculator instantly shows your monthly EMI, total amount payable, and total interest charged over the full loan term.
Higher principal = higher EMI. This relationship is directly proportional: doubling the loan amount roughly doubles the EMI (assuming the same rate and tenure).
Even a 0.5% difference in interest rate can mean thousands of pounds in extra interest over a 20-year mortgage. Always compare the APR (Annual Percentage Rate), not just the advertised headline rate.
A longer tenure reduces your monthly EMI but significantly increases your total interest paid. Choosing between 20 and 25 years on a £200,000 mortgage can cost you an extra £30,000+ in interest over the full term.
Calculate monthly mortgage repayments before applying, and compare what you can afford at different property prices and interest rates.
Work out monthly car loan payments and compare financing options from different dealerships or banks.
Understand your monthly commitment before signing a personal loan agreement, and compare offers from different lenders.
Model multiple loan scenarios to understand the long-term impact of debt obligations on monthly cash flow and net worth.
Yes. In a standard reducing-balance loan, the EMI amount is fixed for the entire loan tenure. However, the split between interest and principal within each EMI changes each month — interest decreases and principal repayment increases over time.
An amortisation schedule is a month-by-month table showing how each EMI payment is split between interest and principal repayment, and what the outstanding loan balance is after each payment. Our EMI calculator generates this automatically.
It depends on your loan agreement. Some lenders reduce the tenure while keeping the EMI constant; others recalculate a lower EMI. Either way, overpaying reduces the total interest you pay. Check your loan terms for any prepayment charges.
A flat rate calculates interest on the full original loan amount for the entire tenure. A reducing balance (the standard method this calculator uses) calculates interest only on the outstanding balance, which decreases each month. Reducing balance loans are significantly cheaper — a 10% flat rate is roughly equivalent to 18-20% on a reducing balance basis.
This calculator uses the standard reducing-balance EMI formula used by all major banks. Results are mathematically exact for comparison and planning. For your specific loan, confirm the final figures with your lender as they may include additional fees.