EMI Calculator
Work out your monthly loan EMI, total interest, and total payment.
About This Tool
The EMI Calculator computes the Equated Monthly Instalment for a loan from the principal, annual interest rate, and tenure. It uses the standard reducing-balance EMI formula, so the figure matches what banks quote for home loans, car loans, and personal loans. It also shows the total interest paid over the loan and the total amount repaid.
All maths runs in your browser, so you can adjust inputs and see results update instantly.
- check_circleMonthly EMI from amount, rate, and tenure
- check_circleShows total interest and total repayment
- check_circleWorks for home, car, and personal loans
- check_circleInstant, browser-based calculation
What your EMI is actually made of
Banks use the reducing-balance method: each month's interest is charged only on the principal still outstanding, and the rest of your fixed instalment repays principal. Early in the loan most of the EMI is interest; the balance flips as the principal shrinks. For example, a ₹10 lakh loan at 9% for 5 years costs about ₹20,760 a month — roughly ₹12.45 lakh in total, of which about ₹2.45 lakh is interest. The same loan stretched to 7 years drops the EMI to about ₹16,090 but pushes total interest past ₹3.5 lakh. That trade-off — smaller EMI now versus more interest overall — is the single most useful thing this calculator makes visible.
Practical ways to pay less interest
Because interest accrues on the outstanding balance, anything that shrinks the balance early saves disproportionately: a single prepayment in year one of a long loan can cut months off the tenure. When comparing offers, compare the total payment for the same tenure rather than the EMI alone, and ask whether the rate is fixed or floating. Also budget for what the EMI excludes — processing fees, insurance add-ons, and foreclosure charges vary between lenders and are not part of the EMI formula.
How tenure changes the cost of the same loan
| Tenure (₹10 lakh at 9%) | Monthly EMI | Approx. total interest |
|---|---|---|
| 3 years | ≈ ₹31,800 | ≈ ₹1.45 lakh |
| 5 years | ≈ ₹20,760 | ≈ ₹2.46 lakh |
| 7 years | ≈ ₹16,090 | ≈ ₹3.52 lakh |
Frequently Asked Questions
How is EMI calculated? expand_more
EMI uses the formula P × r × (1+r)^n / ((1+r)^n − 1), where P is the principal, r is the monthly interest rate, and n is the number of months. This is the standard reducing-balance method banks use.
Is the interest rate monthly or yearly? expand_more
Enter the annual rate. The calculator converts it to a monthly rate internally.
Does this include processing fees or insurance? expand_more
No. It calculates pure loan EMI. Banks may add processing fees, insurance, or other charges separately.