EMI (Equated Monthly Instalment) uses one formula everywhere: EMI = P x r x (1+r)^n / ((1+r)^n - 1). P is the loan amount, r is the monthly interest rate (the annual rate divided by 12, as a decimal), and n is the number of monthly payments. Every bank uses it; only fees and day-count details vary.
Worked example: a Rs 10,00,000 loan at 9% for 20 years. r = 0.09/12 = 0.0075 and n = 240, giving an EMI of about Rs 8,997. Over 240 payments you repay about Rs 21.59 lakh — so roughly Rs 11.59 lakh is interest, more than the loan itself. Early payments are mostly interest; the principal share grows each year, which the year-by-year table in the calculator makes visible. Shortening the tenure is the single biggest lever on total cost.
How to do it in 3 steps
- Open the faymox EMI Calculator.
- Enter your loan amount, annual rate and tenure (years or months).
- Read the monthly EMI, total interest, and the year-by-year amortization table.
FAQ
Why is so much of my early EMI interest?
Interest is charged on the outstanding balance, which is highest at the start. As the balance falls, the interest part shrinks and the principal part grows — the total EMI stays the same.
Does a lower EMI mean a cheaper loan?
No — a lower EMI usually means a longer tenure, which means more total interest. Compare total repayment, not the monthly figure alone.
Is this calculator financial advice?
No — it is an estimate using the standard formula. Your bank statement is the source of truth for fees and exact amounts.