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Plan your loan journey
₹5,00,000
₹93,569
₹5,93,568
EMI stands for Equated Monthly Installment — the fixed amount you pay every month to repay a loan. This calculator computes your EMI, total interest payable, and provides a full amortization schedule showing how each payment splits between principal repayment and interest over the loan tenure.
Step 1: Convert annual rate to monthly rate
r = 11.5% ÷ 12 ÷ 100 = 0.00958
Step 2: Plug values into the formula
EMI = 5,00,000 × 0.00958 × (1 + 0.00958)36 / ((1 + 0.00958)36 − 1)
Step 3: Result
Your monthly EMI = ₹16,488
Think of EMI as your monthly loan bill. You pay the same amount on the same date each month until the loan is fully repaid. In the early months, a larger portion goes toward interest; over time, more goes toward reducing your principal. This is because interest is calculated on the outstanding balance, which shrinks with each payment.
Amortization is the process of spreading out a loan into fixed payments over time. Each EMI payment has two components: principal (reduces your loan balance) and interest (cost of borrowing). In the early years, interest forms the larger share because the outstanding balance is highest. As you pay down the principal, the interest portion shrinks and more of your EMI goes toward principal.
For this loan: 15.8% of your total payout (₹5,93,568) goes toward interest, and 84.2% goes toward principal. Over 36 months you will pay ₹93,569 in interest alone. View the Amortization Schedule above to see the month-by-month breakdown.
Making extra payments toward your principal (prepayment) reduces your outstanding balance faster, which means less interest accrues on future payments. Even small prepayments can save you thousands in interest and shorten your loan tenure significantly.
Try enabling the Prepayment Options above to see the impact:
A common question: should you prepay your loan or invest the extra money? The answer depends on the post-tax return of your investment vs your loan interest rate.
Compare offers from multiple banks — personal loan rates vary widely. A 1% difference on ₹5,00,000 over 3 years saves you ₹9,500+ in interest. Always check the processing fee as part of the total cost.
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EMI (Equated Monthly Installment) is the fixed amount you pay every month to repay a loan. It is calculated using the formula: EMI = P × r × (1+r)^n / ((1+r)^n - 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the tenure in months. Each EMI payment covers both interest and principal, with more going toward interest in the early months.
Prepayment (paying extra toward principal) reduces your outstanding balance faster, which means less interest accrues on future payments. Even one extra payment can save thousands in interest and shorten your loan tenure. Use the Prepayment Options above to simulate different prepayment strategies and see exact savings.
APR (Annual Percentage Rate) is the true cost of borrowing including processing fees, expressed as a yearly rate. IRR (Internal Rate of Return) measures the lender's annualized return. APR focuses on what you pay as a borrower; IRR focuses on what the lender earns. Both are typically higher than the advertised interest rate. Use APR to compare loan offers and IRR to understand the lender's perspective.
The Find Unknown calculator solves for any missing loan variable — EMI, Principal, Interest Rate, or Tenure — when you provide the other three. For example, enter your budget (EMI), desired loan amount, and tenure to find the interest rate you need. Or enter the EMI you can afford, the rate, and tenure to discover how much loan you qualify for.
A Vadi or interest-only loan means you pay only the interest each month while the principal amount stays unchanged until you repay it fully. This is common in gold loans and short-term borrowing. Monthly payments are lower than standard EMI, but total interest can be higher if the loan runs long. Use the Pay Principal option to reduce the principal periodically.
Compare your loan interest rate against your expected post-tax investment return. If your loan rate is higher than what you can earn investing (after tax), prepaying is better. For example, if your loan is at 11.5% and FDs give ~5% after tax, prepay the loan. If you can earn 15% in equities long-term, investing may be better. Your loan is a guaranteed negative return; investments carry risk.
Yes. Click the PDF or Excel buttons in the results panel to download the full amortization schedule. The PDF includes a summary of your loan details followed by a month-by-month table showing opening balance, EMI, principal portion, interest portion, and closing balance. The Excel file provides the same data in spreadsheet format for further analysis.
Our team can help you interpret these calculations and find the right loan for your needs.
Talk to an ExpertDisclaimer: Rates, fees, and terms are indicative and vary by lending institution. Final loan terms are determined by the lender based on their underwriting criteria and your credit profile. PL-NANBAN is a referral platform, not a lender.