How to calculate your EMI
- Enter the loan amount (principal).
- Enter the annual interest rate offered by the lender.
- Enter the tenure in years or months, and choose how often you pay.
- Click Calculate EMI to see your payment, total interest and repayment schedule.
The EMI formula
EMI stands for equated monthly instalment: a fixed payment that covers interest and gradually pays off the loan. It is calculated as EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), where P is the principal, r is the interest rate per payment period (the annual rate divided by 12 for monthly payments), and n is the number of payments. For example, a loan of 1,000,000 at 12% a year for 5 years costs about 22,244.45 per month, with 334,666.86 paid in interest overall.
In the early years most of each payment goes towards interest, and over time more goes to the principal. The year-by-year table and full schedule show this clearly, including the balance left after each payment. With a 0% rate, the payment is simply the loan divided by the number of payments.
Assumptions: a fixed interest rate, equal payments, interest charged on the reducing balance, and no processing fees, insurance or taxes. This is an estimate for planning, not an offer or quote from any lender. Your lender’s figures may differ because of fees, rounding or how interest is applied.
Ways to use the calculator
- Compare loan offers with different rates and tenures.
- See how much a shorter tenure saves in interest.
- Check whether a monthly payment fits your budget before applying.
- Plan prepayments by seeing the remaining balance each year.
Loan EMI FAQ
Can I use any currency?
Yes. Enter amounts in your currency; the maths is the same for rupees, dollars, pounds or any other currency.
What is a reducing balance loan?
Interest is charged only on the amount you still owe, so the interest part of each payment falls over time.
Does it support flat-rate loans?
No. Flat-rate loans charge interest on the original amount for the whole term and cost more than the same rate on a reducing balance.