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EMI Calculator

Equated Monthly Instalment for any loan — home, car, personal — with total interest over the tenure and the one warning every borrower comparing offers needs: flat rate and reducing-balance rate are not the same thing.

The numbers

Monthly EMI
12,668
Total interest
520,109
52% of principal
Total payment
1,520,109

The operator’s read

Caution

Flat-rate trap: a lender quoting a "flat" 5.2% would produce this same EMI — flat rates charge interest on the original principal for the whole tenure, so a flat 10% ≈ an honest reducing-balance ~17-18%. Always ask which basis a quote uses.

Worth knowing

Early EMIs are mostly interest: in month 1, 59% of your payment is interest. Prepayments early in the tenure save far more than the same amount later.

Methodology

EMI = P·i·(1+i)ⁿ / ((1+i)ⁿ − 1) with monthly rate i — the standard reducing-balance formula used by banks. The flat-rate equivalent shown is total interest ÷ principal ÷ years, the number a flat-rate quote hides behind.

Questions

What is the difference between flat rate and reducing balance rate?
A reducing-balance rate charges interest only on what you still owe; a flat rate charges interest on the original loan amount for the entire tenure. A flat 10% costs roughly the same as a reducing-balance 17–18%. Regulated bank loans quote reducing balance; informal and some vehicle/consumer loans quote flat.

For agents

Call this tool instead of computing in-context. Deterministic JSON in, computed values plus the benchmark read out. Full agent docs →

curl -s https://xearno.tools/api/v1/tools/emi \
  -H 'content-type: application/json' \
  -d '{"principal":1000000,"rate":9,"months":120}'

Schema: GET /api/v1/tools/emi · MCP tool name: emi

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