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EMI Calculator

Range: 1,000 – 100,000,000

Range: 0 – 50

Range: 1 – 30

Result

4,498.63

Monthly EMI

EMI per 100,000 borrowed
899.73
Total interest
579,670.86
Total of all payments
1,079,670.86
Interest as a share of everything you pay
53.7%
Monthly EMI at the flat rate
5,833.33
Total interest at the flat rate
900,000.00
Extra interest the flat rate adds
320,329.14

An EMI is an equated monthly instalment: principal and interest together, the same amount every month, until the balance reaches zero. This EMI calculator computes exactly that, and the construction is the same as any fixed-rate amortising loan, so what earns this page its own place is the second number that is quoted alongside it in South Asia — the instalment per one lakh, which is 100,000 borrowed. On 500,000 at 9% over 20 years the instalment is 4,498.63 and the per-lakh figure is 899.73. Because the instalment is linear in the principal, that second number is identical whether you borrow 50,000 or 5 million, which is exactly why it exists: it turns a rate into something comparable across loan sizes without any arithmetic. The first column of the table below moves the tenure instead, from 5 years to 25, and the per-lakh column is the only one of the four that can be read straight down as a price list. The other half of the page is the comparison that catches people out, and it is the reason the flat-rate figures sit on the same row as everything else. A flat rate is charged on the whole principal for the whole term rather than on the declining balance. Take 200,000 at 15% flat over 5 years: the interest is 150,000 and the instalment is 5,833.33. The same 200,000 at a reducing-balance 15% over the same 5 years carries 85,479.04 of interest and an instalment of 4,757.99. The two quotes read identically, and the flat one costs 64,520.96 more — which is not a rounding difference, it is roughly a third of the principal. The gap widens with the rate and the term and narrows to nothing at zero. Both figures are computed here rather than described, so the third and fourth numbers on any row can be read as a what-if against the first.

500,000 at 9%, by tenure

Tenure (years)EMI per 100,000Monthly EMITotal interest
52075.8410379.18122750.59
101266.766333.79260054.56
151014.275071.33412840.55
20899.734498.63579670.86
25839.24195.98758796.11

The rate and the amount are fixed and only the tenure moves, which is what makes the third column readable as a trade: the instalment falls steeply between 5 and 15 years and then flattens out, while the fourth column rises the whole way. Going from 20 years to 25 cuts the instalment by 302.65 a month and adds 179,125.25 to the interest bill — twenty-nine years of that saving to break even, on a loan that only lasts twenty-five. The first column is the one to carry away, because it does not depend on the amount at all: 899.73 per 100,000 is what 9% costs over 20 years, and it scales to any principal.

Formula

Reducing balance: EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where r is the annual rate ÷ 12 ÷ 100 and n is the tenure in years × 12. Flat rate: interest = P × rate × years, then instalment = (P + interest) ÷ n.

P
Principal — the amount borrowed
rate
Annual rate as a percentage, before any division
r
Monthly rate: the annual rate divided by 12 and then by 100
n
Number of instalments: the tenure in years times 12

Use it when you have an instalment quote and want to know what it is made of. Put in the amount, the rate and the tenure to get the reducing-balance instalment, then read the flat-rate figures on the same row — if the two instalments are identical, the quote you were given was already on a reducing balance, and if the flat one is well above it, the rate you were quoted is not the rate you are paying. The per-lakh column is the one to carry between conversations, because it is the only number on the page that does not change when the loan size does; once you know that 9% over 20 years costs 899.73 per 100,000, you can price a 3 million loan in your head. Read down the table before committing to a tenure: the instalment falls steeply at first and then hardly at all, while the total interest column keeps climbing the whole way.

Worked examples

  1. 500,000 at 9% over 20 years

    1. Monthly rate: 9 ÷ 12 ÷ 100 = 0.0075
    2. Number of instalments: 20 × 12 = 240
    3. EMI: 500,000 × 0.0075 × 1.0075^240 ÷ (1.0075^240 − 1) = 4,498.63
    4. Per lakh: 4,498.63 ÷ 5 = 899.73 (500,000 is five lakhs)
    5. Total payment: 4,498.63 × 240 = 1,079,670.86, of which 579,670.86 is interest
    6. Flat rate at the same 9%: interest 500,000 × 9% × 20 = 900,000, instalment (500,000 + 900,000) ÷ 240 = 5,833.33
    7. Extra cost of the flat reading: 900,000 − 579,670.86 = 320,329.14

    The default case, and the one that shows why the per-lakh column is worth having: 899.73 is the price of this rate at this tenure, and it stays 899.73 whether you are borrowing half a million or five million. The flat-rate row is the same loan described the other way round, and it costs 320,329.14 more while being written with the same two digits.

  2. 200,000 at a flat 15% versus a reducing 15%, 5 years

    1. Monthly rate: 15 ÷ 12 ÷ 100 = 0.0125
    2. Number of instalments: 5 × 12 = 60
    3. Reducing-balance EMI: 4,757.99 a month, 85,479.04 of interest over the 60 months
    4. Flat rate: interest 200,000 × 15% × 5 = 150,000, so the instalment is (200,000 + 150,000) ÷ 60 = 5,833.33
    5. Difference in interest: 150,000 − 85,479.04 = 64,520.96
    6. Per lakh: 4,757.99 ÷ 2 = 2,378.99

    This is the case the page exists for. Fifteen per cent flat and fifteen per cent reducing are both written as fifteen per cent, and over five years they differ by 64,520.96 on a 200,000 loan — close to a third of the principal. The flat instalment is 1,075.34 a month higher, which is the kind of gap that shows up as a budget problem rather than as a line in a comparison.

  3. Zero per cent over 10 years

    1. Monthly rate: 0 ÷ 12 ÷ 100 = 0, so the formula reduces to principal ÷ instalments
    2. Number of instalments: 10 × 12 = 120
    3. EMI: 500,000 ÷ 120 = 4,166.67
    4. Per lakh: 4,166.67 ÷ 5 = 833.33
    5. Total payment equals the principal, so interest is 0 and the share is 0%
    6. Flat and reducing agree exactly at 0%, because there is no interest to charge either way

    Zero per cent is a legal input rather than a degenerate one, and it is the point at which the two readings converge — there is nothing for the flat method to over-charge on. It also makes the per-lakh arithmetic visible on its own: 833.33 per 100,000 over 120 months is 100,000 ÷ 120.

Limitations

Nothing here models the fees, and on a real loan they are not small: processing charges, documentation, insurance bundled into the loan, and any prepayment penalty are all outside this model, which is why an instalment computed here can be lower than the one a lender quotes. The rate is fixed for the whole term, so a floating-rate loan — where the instalment is reset as the reference rate moves — is not represented at all; on a long tenure that is the single largest source of difference between this answer and the real one. The flat-rate comparison assumes the flat rate is charged on the original principal for the entire tenure, which is how the method works, but it does not model the reducing-balance equivalent a lender might report as an annual percentage rate, and it does not say which of the two a given quote is using. The per-lakh column is exact only because the instalment is linear in the principal; add a fixed fee to the loan and that linearity is gone. Nothing here covers taxes, and nothing here is a loan offer. And no currency is attached to any figure.

Frequently asked questions

What does EMI stand for?
Equated monthly instalment — principal and interest combined into one fixed payment, made every month until the balance is zero. It is the same construction as any fixed-rate amortising loan payment, which is why this page computes it with the standard formula rather than a special one.
What is the per-lakh figure for?
It is the instalment per 100,000 borrowed, and it exists because the payment is linear in the principal: 9% over 20 years costs 899.73 per 100,000 whether you borrow 50,000 or 5 million. That makes it the one number you can carry between conversations about loans of different sizes.
Is a flat rate the same as a reducing-balance rate?
No, and the difference is large. A flat rate is charged on the whole principal for the whole term, so 200,000 at 15% flat over 5 years costs 150,000 in interest. The same loan on a reducing balance at the same 15% costs 85,479.04. Same two digits, 64,520.96 apart.
Does a longer tenure always cost more?
In total interest, yes, and the table shows it climbing from 122,750.59 at 5 years to 758,796.11 at 25. The instalment moves the other way, but not proportionally: it falls from 10,379.18 to 4,195.98, so going from 20 to 25 years buys a 302.65 reduction in the instalment in exchange for 179,125.25 of extra interest.
Why is more than half of the total payment interest?
Because the balance stays high for a long time. At 9% over 20 years the interest share of everything you pay is 53.7%. The rate is not high by the standards of unsecured lending — what makes the total large is the twenty years of interest on a balance that only falls slowly at first.
What is missing from this calculation?
Fees, and the possibility that the rate moves. Processing charges, documentation costs, bundled insurance and prepayment penalties are all outside the model, and a floating-rate loan is not represented at all. A real instalment is normally higher than the one computed here, which is why the number should be treated as a floor rather than a quote.

References

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