EMI calculator for any loan
Enter the loan amount, interest rate and tenure, and this EMI calculator shows your monthly instalment, the total interest and the full amount you will repay.
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How to use the EMI calculator
- Enter the loan amount you plan to borrow, without commas or currency symbols.
- Type the yearly interest rate your lender quoted, for example 12 for 12% per year.
- Enter the loan tenure in years. Use decimals for part years, such as 2.5 for 30 months.
- Press Calculate EMI to see the monthly instalment, the total interest and the total amount repaid.
- Change one value at a time to compare offers, such as a shorter tenure or a lower rate.
How the EMI calculator works
An EMI (equated monthly instalment) is a fixed payment that clears a loan over an agreed number of months. Each instalment has two parts: interest on the balance you still owe, and a repayment of principal. Early in the loan most of the payment is interest. As the balance shrinks, the interest share falls and more of each payment goes towards the principal, even though the instalment itself never changes.
This calculator uses the standard reducing-balance formula that banks use for home, car and personal loans, so the result should be close to the figure on your loan offer. Small differences can come from processing fees, insurance added to the loan, or a lender that rounds the rate.
Formula
First turn the yearly rate into a monthly rate and the tenure into months: m = annual rate ÷ 1200, and n = years × 12.
Then EMI = P × m × (1 + m)^n ÷ ((1 + m)^n − 1), where P is the loan amount. If the interest rate is zero, the EMI is simply P ÷ n. The total payment is EMI × n, and the total interest is the total payment minus P.
Example
Take a loan of 500,000 at 12% a year for 3 years. The monthly rate m is 12 ÷ 1200 = 0.01 and n is 36 months. (1.01)^36 is about 1.4308, so EMI = 500,000 × 0.01 × 1.4308 ÷ 0.4308, which comes to about 16,607 per month.
Over 36 months you repay about 597,858 in total, so the interest costs about 97,858. Stretch the same loan to 5 years and the EMI drops to about 11,122, but the total interest rises to about 167,333.
Tips and common mistakes
Compare total interest, not just the EMI
A longer tenure always lowers the monthly instalment, which makes a loan look cheaper. Check the total interest figure as well: it shows the real price of the extra time.
Enter the yearly reducing-balance rate
Some lenders advertise a flat rate, which charges interest on the original amount for the whole term. A 10% flat rate costs far more than a 10% reducing rate, so ask for the reducing-balance figure before comparing.
Keep the EMI inside your budget
A common rule of thumb is to keep all loan instalments together below about 40% of take-home pay, leaving room for savings and emergencies.
Ask about fees and prepayment charges
Processing fees, insurance and prepayment penalties are not part of the EMI formula. Get them in writing so you can compare loans fairly.
Prepare your documents in one file
Scanned your salary slips or ID on your phone? Turn the photos into one PDF for the application, and compress large images first if the upload limit is small.
Frequently asked questions
What does EMI stand for?
EMI stands for equated monthly instalment. It is the same amount paid every month until the loan and its interest are fully repaid.
Does a bigger down payment reduce my EMI?
Yes. A larger down payment lowers the loan amount, and the EMI falls in direct proportion. Halving the loan halves the EMI at the same rate and tenure.
Why is my bank's EMI slightly different?
Banks may add fees or insurance to the loan, round the interest rate, or charge interest from the payout date rather than for a full month. These change the figure by small amounts.
Can I use it for a home loan or car loan?
Yes. The formula is the same for home, car, personal and education loans with a fixed rate. For a floating rate, the result is only correct until the rate changes.
Is the EMI calculator free?
Yes. It is free, needs no signup and runs entirely in your browser.