Free tool · ZYRO
See your monthly EMI, total interest and a year-by-year repayment schedule for any loan.
| Year | Principal paid | Interest paid | Balance left |
|---|---|---|---|
| 1 | ₹1,47,208 | ₹52,078 | ₹3,52,792 |
| 2 | ₹1,65,877 | ₹33,408 | ₹1,86,915 |
| 3 | ₹1,86,915 | ₹12,371 | ₹0 |
Offering EMIs to your own customers at checkout? Read how no-cost EMI works.
How EMIs, interest and tenure work.
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly instalments.
Interest is charged on the outstanding balance. At the start the balance is highest, so a bigger part of each EMI is interest; as you repay, more of each EMI goes to principal.
Yes, a longer tenure lowers the monthly EMI but increases the total interest you pay over the life of the loan.
It uses the standard reducing-balance formula used by most banks and NBFCs. Your lender's figure can differ slightly because of processing fees, the exact rate type or how the first EMI date is set.