EMI means Equated Monthly Instalment — a fixed amount you pay each month toward a loan, covering both principal and interest.

How is EMI calculated in India?

Banks use reducing-balance EMI: EMI = P × r × (1+r)^n / ((1+r)^n − 1), where P is principal, r is monthly rate (annual rate ÷ 12 ÷ 100), and n is tenure in months. Example: ₹5,00,000 at 10% for 5 years → EMI ₹10,623.52.

What is the difference between reducing balance and flat rate EMI?

Reducing balance charges interest on the remaining principal each month — this is how home, car, and personal loans usually work. Flat rate charges interest on the original principal for the full tenure, so the same advertised rate costs more. Always compare the two before you sign.

Is this EMI calculator free?

Yes. The Simple Bills EMI calculator is free, works in your browser, and needs no sign-up. For shops that sell on instalments or track business-loan EMIs in the books, see Simple Bills.

Can I use this for home loan, car loan, or personal loan EMI?

Yes. Enter principal, annual rate, and tenure. Choose reducing balance for bank home, car, and personal loans. Use flat rate if a dealer quoted a flat EMI.

Free loan EMI tool

EMI Calculator India

Free EMI calculator for home, personal, car, and shop loans — monthly instalment, total interest, and a year-wise schedule. Use reducing balance (how banks calculate EMI) or flat rate (common on dealer / consumer durable EMI). Same formula Simple Bills uses when you sell on EMI or track a business loan.

Enter loan amount, interest rate, and tenure. This loan EMI calculator shows monthly EMI, interest vs principal, and total payable — instantly, no sign-up.

Example (reducing balance): ₹5,00,000 at 10% p.a. for 5 years → monthly EMI ₹10,623.52, total interest ₹1,37,411.20, total payable ₹6,37,411.20. Enable JavaScript for the interactive EMI calculator.

Year-wise EMI schedule

How much of each year’s payments go to principal vs interest.

Year	Principal paid	Interest paid	Total paid

Month	EMI	Principal	Interest	Balance

Indicative only. Banks may round or add processing fees, GST on charges, or a different day-count. Not a loan offer.

Tip: Flat-rate EMI looks cheaper on the brochure and costs more in rupees. Toggle Flat rate on the same amount to compare. Shops that sell on EMI can quote from this calculator, then track collections in Simple Bills retail EMI.

How this EMI calculator works

Indian banks quote EMI on a reducing balance. Many electronics and two-wheeler dealers still quote flat rate. This tool does both — so you can compare before you sign, or before you offer EMI to a customer.

Reducing-balance formula

EMI = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1). P = principal, r = annual rate ÷ 12 ÷ 100, n = months. Example: ₹5,00,000 at 10% for 5 years → ₹10,623.52 per month.

Flat rate costs more

Flat interest = P × rate × years, then EMI = (P + interest) ÷ months. Same ₹5,00,000 at 10% for 5 years → EMI ₹12,500 and ₹2,50,000 interest — far more than reducing.

Same math as Simple Bills

Retail EMI on a sales invoice and business-loan schedules in Simple Bills use this reducing / flat split — so the quote you show a customer matches the books.

EMI = P × r × (1 + r)ⁿ / ((1 + r)ⁿ − 1)

FAQ

EMI calculator — common questions

What is EMI?: EMI (Equated Monthly Instalment) is a fixed monthly payment toward a loan. Each EMI has a principal part and an interest part. Early months pay more interest; later months pay more principal (on reducing balance).
How is EMI calculated?: For bank loans: EMI = P × r × (1+r)ⁿ / ((1+r)ⁿ − 1). Example: ₹5,00,000 at 10% p.a. for 60 months → EMI ₹10,623.52, total interest about ₹1.37 lakh.
Reducing balance vs flat rate — which should I use?: Use reducing balance for home, car, and personal loans. Use flat rate only if the dealer quoted a flat EMI. Flat interest on the original principal makes the same % cost more.
Is this a free EMI calculator for India?: Yes — no sign-up. Works for home loan EMI, personal loan EMI, car loan EMI, and shop / consumer-durable EMI. For automatic instalment tracking on invoices, see Simple Bills sell on EMI.
Can shops use this before offering EMI to customers?: Yes. Quote the monthly EMI here, then start easy monthly payments from a pending invoice in Simple Bills so collections and books stay in one place — not a notebook. Business loans you took go under banking & loans.

Quote EMI. Then collect it in the same books.

Simple Bills tracks retail EMI on sales invoices and business-loan schedules — journals posted, customer balance updated, no separate spreadsheet.

See EMI on a demo