EMI (Equated Monthly Instalment) is a fixed payment made by a borrower to a lender on the same date each month. Each EMI covers both accrued interest and a portion of the principal, reducing the balance every month.

How is EMI calculated?

EMI = [P × r × (1 + r)^n] ÷ [(1 + r)^n − 1], where P is the principal loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the loan tenure in months.

What is an amortization schedule?

An amortization schedule is a table showing each monthly payment broken down into principal and interest, along with the outstanding loan balance after each payment.

Does this loan calculator work for mortgages?

Yes. The GoChronos loan calculator works for any installment loan: home mortgage, auto loan, personal loan or business loan. Enter the loan amount, annual interest rate and tenure.

What is the difference between flat and reducing interest rate?

A flat rate calculates interest on the full original principal throughout the term. A reducing balance rate calculates interest only on the outstanding balance each month. GoChronos uses the reducing balance method, standard for most bank loans.

Loan & EMI Calculator with Amortisation