Loan EMI and your first twelve repayments
EMI stands for equated monthly instalment: a regular payment that repays principal and interest together. This calculator estimates a fixed-rate amortising loan and shows the first twelve months of its repayment schedule, or fewer for a shorter term. Enter your principal, annual rate and tenure, then choose years or months. The schedule helps explain why an apparently affordable payment can still lead to a substantial lifetime interest bill. It is an estimate, not a lender's quote or an approval decision.
From annual rate to monthly payment
EMI = P × r × (1 + r)^N / ((1 + r)^N − 1). P is borrowed principal, r is annual interest / 100 / 12, and N is the total number of months. For each schedule row, interest = outstanding balance × r, principal repaid = EMI − interest, and the new balance is the previous balance minus principal repaid.
The calculator currently accepts positive interest rates; a zero-interest loan can be checked manually as principal / number of months. Use whole payment months, such as 60 months or five years. For a fixed term, a higher rate increases the payment and lifetime interest. For a fixed rate, extending the term normally lowers the payment but raises total interest.
Compare the whole borrowing cost
The displayed totals exclude arrangement fees, insurance, late charges and early-repayment penalties. An APR can include costs beyond the contractual interest rate. Ask for both the payment schedule and the total cost of borrowing rather than choosing a loan only by its monthly instalment.
The preview is not the full amortisation table for a longer loan. It does not include irregular payments, extra principal repayments or rate changes. Compare offers using the same principal and term, then separately include each lender's fees. Leave room in your budget for essential expenses and unexpected costs; a mathematical payment does not establish that a loan is affordable.
Worked examples
20,000 at 8% over five years
Using 60 months and a monthly rate of 0.08 / 12 gives an EMI of about 405.53. Total repayment is 24,331.67 and total interest is 4,331.67. The amounts use whichever currency you select; the 8% rate is hypothetical.
First payment breakdown
For that loan, first-month interest is 20,000 × 0.08 / 12 = 133.33. Approximately 272.19 repays principal, leaving 19,727.81. Later interest falls as the balance shrinks. Figures are rounded for explanation, not separately rounded inside the schedule.
Frequently asked questions
Why is the first interest payment larger?
Interest is calculated on the outstanding principal, which starts at its highest level. As principal is repaid, the interest portion falls.
Does the table show the entire loan?
It previews at most twelve payments. Total interest and total repayment still use the full term entered.
Can I enter zero interest?
This calculator currently requires a positive rate. For a genuinely fee-free, zero-interest loan, divide principal by the number of monthly payments.
Are lender fees included in total interest?
No. Processing charges, insurance and other fees are separate costs unless explicitly added to the financed principal.