Loan / EMI Calculator

How to use this calculator

Enter the loan amount, the annual interest rate, and the tenure in months, then press Calculate EMI. The tool returns your Equated Monthly Instalment — the fixed amount you would repay each month — along with the total interest and the total amount payable over the whole loan. It works for personal loans, car loans, education loans and any other fixed-instalment borrowing. Trying different tenures shows the trade-off clearly: a longer tenure lowers the monthly EMI but raises the total interest you pay.

The formula explained

EMI uses the standard reducing-balance formula. With principal P, monthly rate r (annual ÷ 12 ÷ 100) and n months:

EMI = P · r · (1 + r)ⁿ / ((1 + r)ⁿ − 1)

Each instalment is identical, but early EMIs are weighted towards interest and later ones towards principal as the outstanding balance falls. Multiplying the EMI by the number of months gives the total payable, and subtracting the original loan leaves the total interest. Because the rate is applied to a shrinking balance, this "reducing balance" method costs less than a flat-rate calculation on the same headline rate.

A worked example

A 500,000 loan at 10% per year over 24 months has a monthly rate of about 0.833%. The formula gives an EMI of roughly 23,072. Over 24 months that totals about 553,740 payable, of which around 53,740 is interest. Enter your own figures above for the exact numbers in your currency.

Frequently asked questions

What is an EMI?

Equated Monthly Instalment — the fixed monthly repayment covering both interest and principal.

How is EMI calculated?

With the reducing-balance amortization formula using the loan amount, monthly rate and number of months.

What is total payable?

The EMI multiplied by the number of months — the loan plus all interest.