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.
Fixed rate vs floating rate
A fixed-rate loan keeps the same interest rate and EMI for the whole term, giving certainty. A floating (variable) rate moves with the market, so your EMI can rise or fall — this calculator assumes a fixed rate, so re-run it if your rate changes. Fixed rates are usually a little higher at the start but protect you if rates climb.
Should you prepay a loan or invest instead?
If your loan's interest rate is higher than the return you could reliably earn elsewhere, prepaying usually wins — it is a guaranteed, tax-free saving. Prepay early in the term, when interest makes up most of each EMI, and ask the lender to reduce the tenure rather than the EMI to save the most. Always check for prepayment penalties first.
Frequently asked questions
What is a good interest rate for a loan?
It depends on the loan type and country. Compare offers on the same tenure and look at the total interest, not just the monthly EMI.
Does this calculator include processing fees or insurance?
No — it shows principal and interest only. Add any one-time fees separately to see the true cost.
How does a bigger down payment change my EMI?
A larger down payment reduces the loan principal, which lowers both your monthly EMI and the total interest paid.
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.