Loan EMI calculator

An EMI (Equated Monthly Instalment) is the fixed amount you pay every month to repay a loan, covering both interest and principal. Knowing it before you borrow tells you whether the loan fits your budget and how much the loan really costs over its life. This calculator works for home loans, car loans, personal loans and education loans.

How to use it

1. Enter the loan amount.
2. Enter the annual interest rate.
3. Enter the tenure in years or months.
4. Read the monthly EMI, total interest and total amount payable.

The EMI formula

EMI = P × r × (1 + r)^n / ((1 + r)^n - 1), where P is the principal, r the monthly interest rate (annual rate / 12 / 100) and n the number of monthly instalments.

Worked example

A home loan of 10,00,000 at 9% per year for 20 years: r = 0.0075 and n = 240. The EMI is about 8,997. Over 240 months you repay about 21,59,000, so the total interest is about 11,59,000, more than the amount borrowed.

How tenure changes the cost

The same 10,00,000 at 9%:

• 10 years: EMI about 12,668, total interest about 5,20,000.
• 20 years: EMI about 8,997, total interest about 11,59,000.

A longer tenure lowers the EMI but more than doubles the interest.

Ways to reduce interest

• Prepay early. Extra payments in the first years reduce the principal on which all later interest is charged.
• Compare the effective rate, including processing fees and insurance, not just the headline rate.
• Floating-rate loans change EMI or tenure when rates move; check which one your lender adjusts.

Lenders' exact figures can differ slightly because of rounding and the day-count method they use.