Calculate your monthly loan payments by Flat or Reducing Balance Method
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Our free online Loan EMI Calculator helps you calculate your monthly loan installments (EMI) for any type of loan - home loan, car loan, personal loan, education loan, etc. Whether you need to calculate EMI for a reducing balance loan or flat rate loan, our calculator provides accurate results instantly.
EMI (Equated Monthly Installment) is the fixed payment amount made by a borrower to a lender at a specified date each calendar month. EMIs are used to pay off both interest and principal each month, so that over a specified number of years, the loan is fully paid off along with interest.
Reducing Balance Interest: Interest is calculated on the outstanding loan amount which decreases as you pay EMIs. This is the most common method used by banks for home loans, personal loans, etc.
Flat Rate Interest: Interest is calculated on the original loan amount throughout the loan tenure. This method typically results in higher interest payments compared to reducing balance.
For Reducing Balance loans, the EMI is calculated using the following formula:
EMI = [P × R × (1+R)^N] / [(1+R)^N – 1]
Where:
P = Principal loan amount
R = Monthly interest rate (annual rate/12/100)
N = Loan tenure in months
For Flat Rate loans, the calculation is simpler:
EMI = (Principal + Total Interest) / Loan Tenure in Months
Where Total Interest = (Principal × Annual Rate × Loan Years) / 100