Reducing-balance EMI

EMI Calculator

EMI, total interest and the full amortization schedule — with moratorium support and PDF / Excel export.

Your loan details
The principal you plan to borrow.
Reducing-balance rate — interest is charged on the outstanding balance each month.
The number of EMIs. A moratorium below adds extra months before EMIs begin.
Loan charges (optional) — for the effective ROI
Processing fee, documentation, insurance etc. — enter as billed (GST-inclusive).
Charge treatment
You receive the loan amount minus charges; EMIs are computed on the full loan amount — how processing fees usually work.
Your EMI
Enter the loan amount, interest rate and tenure to see the EMI and the full month-by-month schedule.
Estimates only. Actual EMI and schedule depend on your lender's terms — disbursement date, day-count convention, fees and rate resets. This is not an offer of credit or financial advice.
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How the EMI is calculated

The EMI (Equated Monthly Installment) on a reducing-balance loan is computed with the standard annuity formula: EMI = P × r × (1 + r)n / ((1 + r)n − 1), where P is the principal, r the monthly interest rate (annual rate ÷ 12) and n the number of months. Each month's payment first covers the interest on the outstanding balance; the remainder reduces the principal — so the interest component falls and the principal component rises over the tenure. The EMI is rounded to the nearest rupee, and the final installment adjusts so the closing balance is exactly zero.

What a moratorium does to your loan

A moratorium is a payment holiday at the start of the loan — common for education loans, project loans and construction-linked disbursements. It defers payments, but it is never free: in a full moratorium no payments are made and the accrued interest is added to the principal each month (it compounds monthly, the way banks apply it), so EMIs are later computed on a larger amount. In an interest-only moratorium you pay the interest as it accrues and the principal stays unchanged — cheaper overall than full deferral, but with a monthly outgo from day one. The schedule above shows the moratorium months separately so both effects are visible.

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