EMI Calculator
Your equated monthly instalment on a reducing-balance or a flat-rate loan, what the same rate costs charged the other way, and the reducing rate a flat rate really means.
Result
EMI: $16,133.59
No processing fees, insurance, taxes or prepayment charges are included, and a lender may round or split EMIs differently.
- Total interest
- $80,809.42
- Total paid
- $580,809.42
- Flat rate this reducing rate equals
- 5.3873%
- EMI if the same rate were charged the other way
- $18,055.56
- Total interest charged the other way
- $150,000.00
- Extra interest the flat method charges at this rate
- $69,190.58
- Interest in the first EMI
- $4,166.67
- For a flat-rate loan, split at its reducing-balance equivalent.
- Principal repaid by the first EMI
- $11,966.92
- Interest paid in the first year
- $43,231.90
- Still owed after the first year
- $349,628.82
- Final EMI
- $16,133.77
- The last EMI absorbs the rounding, so it differs slightly from the others.
- Number of EMIs
- 36
https://calcgallery.com/finance/emi-calculator/
Results are arithmetic estimates based on the values you enter. Rates, fees and terms are set by your lender or provider, and your actual agreement controls what you pay or receive. Confirm important figures with them or with a qualified adviser. Read the full disclaimer
How to use the EMI Calculator
- Enter the loan amount, the yearly interest rate the lender quotes and the term in years or months.
- Choose whether the rate is charged on the reducing balance or flat on the original amount. The loan offer or key facts statement should say.
- Read the EMI, the total interest and what you still owe after a year.
- Compare the same rate charged the other way, and for a flat rate, the reducing-balance rate it really amounts to.
How it is calculated
On a reducing balance the rate a month is the yearly rate ÷ 12, and the EMI is the level payment that clears the loan in the term:
EMI = P × r ÷ (1 − (1 + r)^−n) r = yearly rate ÷ 12, n = monthsThis is the same schedule the loan payment calculator runs, in whole cents or paise, with the last EMI taking up the rounding.
On a flat rate the interest is worked out once, on the original amount for the whole term, and the total is split evenly:
interest = P × flat rate × yearsEMI = (P + interest) ÷ nWhat a flat rate really costs
A flat-rate EMI repays the same loan as a reducing-balance EMI at some higher rate. The page finds that rate numerically: it is the monthly rate at which the present value of all the EMIs equals the amount borrowed, quoted as twelve times the monthly rate, the way a reducing rate is quoted. This is the same internal-rate method the Reserve Bank of India’s key facts statement format uses for the annual percentage rate on a microfinance loan.
In the other direction, a reducing-balance loan is shown with the flat rate that would charge the same total interest, which is how its cost compares with a flat quote.
What is left out
Processing fees, insurance, taxes, prepayment charges and any broken-period interest before the first EMI. They raise the real cost of the loan above what the page shows, and a lender’s APR includes some of them. Compare offers on their disclosed APR where you have one.
With your numbers
- Interest = $500,000.00 × 10% × 3 years = $150,000.00
- EMI = ($500,000.00 + $150,000.00) ÷ 36 = $18,055.56
- Reducing-balance equivalent = 17.918% a year
Quick reference
No processing fees, insurance, taxes or prepayment charges are included, and a lender may round or split EMIs differently.
| Example | EMI |
|---|---|
| 500,000 at 10% flat over 3 years | €18,055.56 |
| 500,000 at 10% reducing over 3 years | €16,133.59 |
| 1,000,000 at 8.5% flat over 5 years | €23,750.00 |
| 200,000 at 12% reducing over 24 months | €9,414.69 |
| 60,000 at 9% flat over 6 months | €10,450.00 |
| 32,000 at 6% reducing over 3 years | $973.50 |
Common questions about the EMI Calculator
- What is an EMI?
- An equated monthly instalment: the same payment every month until the loan is repaid, covering that month's interest and part of the principal. The term is used mostly in India and South Asia; elsewhere it is simply the monthly payment. This page works in whatever currency your region uses.
- What is the difference between a flat rate and a reducing balance rate?
- On a reducing balance, each month's interest is charged only on what you still owe, so the interest falls as you repay. On a flat rate, interest is charged on the full original amount for the whole term, as if you never repaid any of it. At the same quoted rate a flat-rate loan therefore costs much more: on loans of one to five years at 5% to 15% flat, the equivalent reducing rate works out at roughly 1.6 to 1.9 times the flat figure.
- How do I convert a flat rate to a reducing balance rate?
- Choose "Flat, on the original amount", and the page finds the reducing-balance rate at which the same EMI would repay the same amount over the same term. That rate is the one to compare with a reducing-balance offer, or with the APR a lender discloses. There is no fixed multiplier: the ratio depends on the term and the rate.
- Is my EMI the same as the one the lender quoted?
- It should be close. Lenders round each instalment and may round the interest differently, charge from the disbursement date rather than a whole month, or add processing fees and insurance, which this page leaves out. The last EMI here absorbs the rounding.
- Why is the first-year interest on a flat loan split this way?
- A flat-rate EMI is the same every month, but the balance you really owe falls as it would on a reducing-balance loan at the equivalent rate. The page splits the EMIs that way, which is how the loan's true cost falls over time. A lender's own statement may allocate interest differently, for example by the rule of 78s, which matters if you repay early.