Being associated with bank for short-term, I often get this question from friends and relatives. How to calculate EMI? When you apply for loan, they will just tell you the EMI, but does not tell you how they are calculated unless you ask them specifically to show how they calculated it. EMI table is also called as amortization table, which shows the balance at each installment.

EMI or equated monthly installments is the most popular form of loan payment. It is a fixed amount of repayment made every month towards the loan, which includes payment towards both principal and interest.

It is easy to prepare an EMI table in Excel sheet. There is a financial function called PMT to calculate the EMI.

**PMT(rate,nper,pv)**

**rate** – Interest rate for the loan.

**nper** – Total number of payments for the loan.

**pv** – Present value/principal.

Prepare excel sheet with the following data and enter the PMT function in the cell “**C7**.”

- Rate = C6/C5, which divides rate of interest by number of months thus giving rate of interest per month.
- Nper = C4*C5, which gives total number of months we need to pay equated installment.
- Do not forget to take the loan amount in minus value, so that our EMI table shows positive values.

Now prepare table with Serial Number of Payment, Monthly Installment, Interest Amount, Principal Amount, and Balance. Take the first row with serial number “0” and in the balance amount point the cell to “Loan Amount” – type “**=C3**” Next Enter the serial number as 1. Monthly installments will remain same so take absolute cell reference (by adding **$**) which will not change when you drag the cells to auto increment. In “Monthly Installment” column, enter “**=$C$7**“. In the “Interest Amount” column, enter “**=F10*$C$6/$C$5**” which means we are dividing the balance amount at the end of the month by monthly interest rate (rate of interest/payments per year). As the rate of interest and yearly payments are not going to change, we used absolute reference using **$** sign. In “Principal Amount” column type “**=C11-D11**” which deducts the monthly interest from monthly EMI and whatever the balance available shows as payment towards the principal amount. In “Balance” column enter,”** =F10-E11**“, which means we are deducting the principal amount in the EMI to ascertain the original balance at the end of the month upon which we are going to calculate interest for the next month. Now select the row and drag it until balance becomes “0”.

That’s all! We made our own EMI calculator in Excel. This Excel EMI calculator is created for a tenure of 20 years. If you are just calculating for 5 years, i.e., 60 months, 61st month shows values red colored and in minus range. So you need to take up to “**0**” in the balance column. Ignore the values in **RED**. If you want to calculate for more years, then just select the last row and drag it to extend it.

**Download the Simple Excel EMI Calculator.**

**Download the Excel EMI Calculator with Ad Hoc Payments.**

**Download the Excel EMI Calculator with Multiple Reimbursements.**

**Download the Excel EMI Calculator with All the Three Sheets.**

**Update – Oct 16, 2009:** Mr. **Parixit Namdhar**, one of my blog readers, suggested that instead of entering the formula “**=$C$7**” in column “**C**” entering “**=IF($B11>($C$4*$C$5),0,$C$7)**” solves the minus values problem. This formula makes the minus values zero making it easily understandable and looks neat. Thanks a lot Parixit!

**Update – April 22, 2012:** Mr. **Ravi Krishna**, one of my blog readers, updated the Excel sheet with ad hoc payments and multiple reimbursements, which a lot of readers were asking. Thank you very much Krishna!

Please publish a new calculator incorporating adhoc payments, with Multiple Reimbursements and interest rate changed multiple times. Thanks.

Thanks A LOT…. It is very helpful….

Hi Naveen,

This is by far the best and the most thoroughly thought out EMI calculator. This served my exact need.

Regards,

Prabhu

it easy to understand

Thanks Man!!!!!!!!!!

Hi,

Can you add a cloumn for pre-payment adjustment……….

great job. keep it up. Very useful

Please publish a new calculator for compound interest calculation on monthly, quarterly, half yearly and yearly basis. It will also be very useful for us.

Very Useful calculator.

Nice work. but not much useful unless there is “pre-payment” column which is a must.

Thanks

Thanks, very helpful.

can it be possible to include change in interest rate also , i.e with floating interest rate there is a change in interest rate in the middle of loan tenure also

hi naveen. i ve gone through your excel sheet. it was nice and well done… keep it up your good work..

Thanks Naveen for putting that much of effort in your EMI Calculator which is really a very handy tool, but i need your help current version is reducing tenure while doing ad-hoc or part payment while i am looking for EMI reduce option, would really appreciate if you can make such changes in your EMI Calculator.

Thanks alot…..

Dear Mr. Naveen,

It’s very nice calculator. i need your help to calculate hoan for under cunstructon home. before One year i took home loan Rs. 17,0000 for under cunstructon home. I took 3 dispersement of Rs. 3,00,000/3 months. I paid Rs. 16575/month. Now i want to check how much i paid Interest and how much amount adjsuted in principle amount. can you please advice?

Thanks ..It was really good calculator but would appreciate if we could have something where variable changing rate of interest can also be considered from time to time as banks vary that ..for example 2 years back it was 9% , and today its 11 ..so along with adhoc payments if we can have that option as well, it would be gr8.

sir

On an analysis of an EMI schedule, interest is recovered first, and pricipal is accounted at a snail pace.

The interest figure is not comfortable to read.

Also Interest payment above 150000 do not get any benefit.

Let me call this as interest prominent.

Can you make this principal prominent????

Meaning higher principal initially, and lower interest component.

Can any one of you enlighten.

I have something to say about it.

First try to explain to me.

sir

The EMI schedule is an amortisation chart, which gives details of apportionment of principal and interest and liquidate the liability at the end of chosen period,

It is true to have EMI value by input of data.

How is the EMI value derived.

I have an answer, but I wish to have it from you.

vrshenoi

Sir

Can you explain the EMI fixation in terms of Deposit Products???

I have something to say???

ready to hear???

v ramachandra shenoi

I don’t know how to do it manually, but you can refer to this post for a detailed explanation.

Hi,

Thanks for the great calculator. Can you please update the sheet with an option for Tranche EMIs which is a useful offering?

Thanks

can it be possible to include change in interest rate also , i.e with floating interest rate there is a change in interest rate in the middle of loan tenure also

It’s really great.

I want to change the values in Loan Disbursement to check the payment schedule for me .. can u pls send me a unprotected sheet .. it would be really useful

i want to do monthwise payment of loan after payment it should be automatically update in loan amortization

I would like to download excel sheet for home loan