Loan EMI Calculator
Estimate the monthly instalment (EMI) for a loan and see how much interest you will pay.
%
months
57,747.97
307,747.97
60
Formula
Examples
| Input | Result |
|---|---|
| $500,000 loan, 10% annual rate, 5-year tenure | EMI $10,623.52; total repaid $637,411.34; total interest $137,411.34 |
| $200,000 loan, 8% annual rate, 3-year tenure | EMI $6,267.27 per month |
| Same $500,000 loan, comparing rate impact | At 10% over 5 years the EMI is $10,623.52 with $137,411.34 interest; a lower rate would reduce both figures |
About this calculator
A loan EMI calculator works out your Equated Monthly Instalment, the fixed amount you pay each month to clear a loan over its full term. EMI applies to personal loans, home loans, car loans, and most consumer credit, blending principal repayment and interest into one steady payment so your budget stays predictable.
The formula is EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the number of monthly instalments. Although the instalment is constant, its makeup shifts over time: early instalments are interest-heavy, and later ones repay more principal as the balance falls.
To use the calculator, enter the loan amount, the annual interest rate, and the tenure in years (or months). The tool returns your monthly EMI, the total interest you will pay, and the total amount repayable. Change any input to see how a higher rate or longer tenure affects affordability and overall cost.
Read the EMI as your committed monthly outflow and the total interest as the cost of borrowing. A longer tenure lowers the EMI but increases total interest, while a shorter tenure raises the EMI yet saves on interest. Use the breakdown to find a tenure that keeps the monthly payment manageable without overpaying in the long run.
A frequent error is choosing the longest tenure just to get the smallest EMI, which can quietly inflate total interest by a large margin. Also remember that this is the base EMI; processing fees, insurance, or a higher rate for missed payments can raise your real cost. Confirm whether your lender quotes a flat or reducing-balance rate, since this calculator assumes reducing balance.
Frequently asked questions
EMI stands for Equated Monthly Instalment. It is the fixed sum you pay your lender every month, combining both interest and principal repayment, until the loan is fully cleared at the end of its tenure.
No, it does the opposite. A longer tenure lowers each monthly EMI but increases the total interest because you owe the balance for more months. A shorter tenure raises the EMI but cuts total interest, so balance affordability against long-term cost.
It uses the reducing-balance method, where interest is charged on the outstanding principal each month. This is the standard for most home, car, and personal loans. Flat-rate loans charge interest on the original amount throughout, making them effectively more expensive.
Most lenders allow prepayment, which reduces your principal and saves future interest, though some charge a prepayment penalty. This calculator shows the standard schedule; if you prepay, recalculate with the reduced balance to see your new EMI or shortened tenure.
For a fixed-rate loan the EMI stays constant for the whole term. For a floating-rate loan, lenders usually keep the EMI the same and adjust the tenure instead, or revise the EMI at reset dates. This tool assumes a fixed rate throughout.
Three inputs drive it: the loan amount, the interest rate, and the tenure. A higher principal or rate raises the EMI, while a longer tenure lowers it. Even a one-percentage-point rate change can noticeably shift both your EMI and total interest.
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