Loan / EMI Calculator
Enter the loan amount, interest rate and tenure — see your monthly installment, total interest, and what the loan really costs.
How EMI is calculated
An EMI (Equated Monthly Installment) is the fixed monthly payment that repays a loan over an agreed period. The standard formula is 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 payments.
Example: a loan of 500,000 at 11.5% per year for 5 years gives a monthly rate of 0.9583% over 60 months — an EMI of about 10,996, and total interest of roughly 159,700 on top of the principal. Seeing that total is often the moment people choose a shorter tenure.
Tenure: the biggest lever you control
Interest accumulates for every month the loan is open, so tenure changes the total cost more than most people expect. The same 500,000 loan at 11.5% costs about 159,700 in interest over 5 years — but around 344,000 over 10 years. A longer tenure buys a smaller monthly payment at a steep total price. If your budget allows, choose the shortest tenure you can carry comfortably, or make principal prepayments when extra money arrives.
What this calculator works for
Any amortizing loan with a fixed rate: car loans, personal loans, home loans/mortgages, education loans and appliance financing. It assumes a fixed interest rate and equal monthly payments — floating-rate loans will drift from these figures when the rate changes.
Frequently asked questions
What is an EMI?
The fixed amount you pay every month to repay a loan — part principal, part interest. Early payments are mostly interest; later ones mostly principal.
How is EMI calculated?
EMI = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1), where P is the loan amount, r the monthly rate (annual ÷ 12 ÷ 100), and n the number of months.
How can I pay less interest overall?
Shorter tenure, lower rate, or extra principal prepayments. A shorter tenure raises the EMI but cuts total interest dramatically — compare both here.