EMI Calculator — Compounza

Monthly EMI

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Total Interest

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Total Payment

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Interest %

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Principal %

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Total Months

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Effective Rate

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Principal vs Interest

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Amortization Chart

Amortization Schedule (Yearly)

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Year	Opening Balance	Principal Paid	Interest Paid	Total Payment	Closing Balance

How is EMI calculated?

EMI (Equated Monthly Installment) is calculated using the reducing balance method. Each month, interest is charged on the outstanding principal, and the rest of the EMI reduces the principal.

EMI = P × r × (1 + r)ⁿ / [(1 + r)ⁿ − 1]

Where: P = Principal loan amount, r = Monthly interest rate (annual% / 12 / 100), n = Total months

The amortization schedule shows how each payment is split between principal and interest over the loan tenure. In the early months, most of your EMI goes toward interest. Over time, as the outstanding balance reduces, more of your EMI goes toward principal.

To reduce total interest cost, consider making prepayments whenever possible, especially in the first few years of the loan.