Borrowing
EMI Calculator
Work out a loan's EMI on a reducing balance or a flat rate, the processing fee with GST, the APR you really pay, and what a part-prepayment saves.
Monthly EMI
$21,493.90
60 instalments · $289,634.02 interest in total
Total payable
$1,289,634.02
over 5 years
Fee and tax up front
$11,800.00
$10,000.00 fee + $1,800.00 GST; $988,200.00 received
APR
11.02%
12 × the monthly rate on the amount received
How the EMI of $21,493.90 was worked out
With i = 10.5% ÷ 12 = 0.00875 a month and n = 60, EMI = P × i × (1 + i)^n ÷ ((1 + i)^n − 1) = $21,493.90. Each month's interest is i times the balance still owed, so early instalments are mostly interest and later ones mostly principal.
Why the APR is 11.02%, not 10.5%
The 1% processing fee is $10,000.00 and the 18% tax on it $1,800.00, so you receive $988,200.00 but repay instalments worked out on $1,000,000.00. The monthly rate that balances the two, times 12, is 11.02%: the method the Reserve Bank's Key Facts Statement uses for the APR it requires lenders to show.
GST at 18% (9% CGST and 9% SGST, or 18% IGST) applies to a lender's processing fee; the interest itself is exempt.
Fixed rate, monthly instalments. An estimate, not financial advice, providers may calculate differently.
- Principal
- Interest
- Principal$1,000,000.0077%
- Interest$289,634.0222%
- Fee and tax$11,800.001%
Repayment schedule
| Year | Paid | Interest | Balance |
|---|---|---|---|
| 1 | $257,926.80 | $97,421.46 | $839,494.66 |
| 2 | $257,926.80 | $79,733.21 | $661,301.07 |
| 3 | $257,926.80 | $60,095.66 | $463,469.93 |
| 4 | $257,926.80 | $38,294.00 | $243,837.13 |
| 5 | $257,926.82 | $14,089.69 | $0.00 |
A result link includes the numbers you entered. Share it only with people you want to see them.
How this is calculated
On a reducing balance the calculator finds the level monthly instalment that repays the loan with interest charged each month on the balance still owed, and lays out every month of the schedule; on a flat rate it charges the rate on the original sum for the whole tenure, divides the total by the months, and shows the higher reducing-balance rate that flat quote really amounts to. It adds the processing fee and the tax on it to the upfront cost, works out the APR on what you actually receive, and models a lump-sum prepayment kept either as a shorter tenure or as a lower instalment.
EMIP × i × (1 + i)n ÷ ((1 + i)n − 1)
- P
- Loan amount
- i
- Interest rate a year ÷ 12, as a decimal
- n
- Tenure in months
What this does not include
- Floating-rate resets: the rate is fixed for the whole tenure.
- Insurance sold with the loan, and stamp duty or other third-party charges.
- Penalties for late payment, and any charge for prepaying.
- Broken-period interest for a first instalment that falls less or more than a month away.
How this calculator works
EMI explained: the formula, flat rates, fees and prepayments. How an EMI is worked on a reducing balance, why a flat rate costs more than it sounds, how the fee and its GST raise the APR, and what prepaying saves.
Data sources
| Dataset | Authority | Effective | Status |
|---|---|---|---|
| Indian loan charges: GST on processing fees | CBIC | Within its effective period |
Every document each dataset was read from, its notes and how the figures were checked are listed in the guide's data sources.
This calculator is for general information only and is not financial advice. Results are estimates based on the figures you enter and the stated formula; lenders and providers may round or calculate differently. Check any decision with the institution involved or a qualified adviser.