Enter your loan amount, interest rate, and tenure. Ledger works out your exact monthly installment, total interest, and a full year-by-year repayment schedule.
| Year | Opening balance | Principal paid | Interest paid | Closing balance |
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Your EMI is a fixed monthly payment, but the mix of principal and interest inside it changes every month.
EMI is calculated using your loan amount, the monthly interest rate, and the number of months in your tenure:
EMI = P × r × (1+r)n / ((1+r)n − 1)
Where P is your loan amount, r is your monthly interest rate (annual rate ÷ 12 ÷ 100), and n is your total number of monthly installments.
Each month, interest is charged on whatever balance you still owe - this is called a reducing balance method. Early in the loan, your balance is at its highest, so a large share of your EMI goes toward interest and only a small share reduces the principal. As months pass and the balance shrinks, more of each EMI goes toward principal instead, even though the EMI amount itself stays the same.
EMI stands for Equated Monthly Installment - a fixed amount you pay every month toward a loan, made up of a principal portion and an interest portion, until the loan is fully repaid.
Interest is calculated on your remaining loan balance each month. Early on, the balance is high, so more of your EMI goes toward interest. As you repay principal, the balance shrinks, so a bigger share of each later EMI goes toward principal instead.
No - a longer tenure lowers your monthly EMI, but you pay interest for more months, so the total interest paid over the life of the loan is usually higher. A shorter tenure means a higher EMI but less total interest.
Yes. Any extra payment toward principal reduces the balance that future interest is calculated on, which reduces total interest paid and can shorten the loan tenure, depending on how your lender applies prepayments.