EMI Calculator

Before taking a home, car or personal loan, the number people want is the monthly instalment, and this works it out with the standard reducing-balance formula: each equal payment covers the interest accrued that month and puts the remainder toward the principal. Enter the amount, the annual rate and the term, and you get the EMI, the total interest and the total repayable, plus an amortisation schedule showing how the split shifts from mostly interest early on to mostly principal later. Check the term unit before trusting anything — twenty years and twenty months are very different loans and the same digits describe both. The figure assumes a fixed rate for the whole term, so on a floating-rate loan either the instalment or the term will change when rates move. Processing fees, insurance and prepayment charges are excluded, which is why a lender's quote usually comes out slightly higher.