About this tool
Why it exists.
An EMI, or equated monthly instalment, is the fixed amount you pay each month until a loan is cleared. Each payment covers some interest and some of the original amount borrowed. Early payments are mostly interest, and later ones are mostly principal.
Enter the loan amount, the annual interest rate and the term. The calculator turns the rate into a monthly rate and applies the standard EMI formula. It also shows the total interest you will pay and what share of the total repayment that interest represents, which makes the real cost of a long loan easy to see.
How to use it.
- Enter the loan amount and the annual interest rate.
- Enter the term and choose years or months.
- Read the monthly payment, total interest and total repaid.
Good questions.
What is the EMI formula?
EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), where P is the amount borrowed, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly payments.
Does a longer term make a loan cheaper?
It lowers the monthly payment but usually raises the total interest, because you owe money for longer. Compare the total interest figure for different terms.
Will my lender's figure match exactly?
It may differ slightly. Lenders can add fees or insurance, round differently, use daily interest or change a variable rate. Treat this as an estimate and confirm with your lender.