Loan / EMI Calculator
Calculate your monthly loan payment (EMI), total interest and total repayment for any loan amount, interest rate and tenure. See the principal–interest split instantly.
How loan EMI is calculated
Your EMI (Equated Monthly Instalment) is the fixed monthly payment that fully repays a loan — principal plus
interest — over its tenure. It is computed with the standard amortization formula:
EMI = P × r × (1 + r)ⁿ / ((1 + r)ⁿ − 1)
where P is the amount borrowed, r is the monthly interest rate (annual rate ÷ 12 ÷ 100)
and n is the number of monthly payments.
Worked example
Borrow 25,000 at 8.5% per year for 5 years:
r = 8.5 / 12 / 100 = 0.007083 and n = 60. The formula gives an EMI of about 512.91.
Over 60 payments you repay ≈ 30,775 in total, of which ≈ 5,775 is interest — roughly 23% on top of what you borrowed.
Reading the amortization schedule
Interest each month is charged on the remaining balance, so early payments are interest-heavy.
In the table above you can watch the interest share shrink and the principal share grow each year —
and see exactly how much you still owe at any point, which is what you'd need for early settlement.
EMI tips
- A shorter tenure raises the EMI but can cut total interest dramatically.
- Even a 0.5% lower rate matters on long loans — compare offers using the total-interest figure, not the EMI.
- Prepayments go straight to principal, shortening the loan and saving future interest.
Frequently asked questions
How is EMI calculated?
EMI = P × r × (1 + r)n / ((1 + r)n − 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly payments. This calculator applies exactly that formula and also handles 0% promotional rates.
What is an EMI?
EMI stands for Equated Monthly Instalment — the fixed amount you pay every month, which covers both interest and part of the principal. Early payments are mostly interest; later payments are mostly principal.
Does a longer tenure reduce my EMI?
Yes — spreading the loan over more months lowers each payment, but you pay interest for longer, so the total interest paid rises substantially. Compare the "Total interest" figure at different tenures before choosing.
How can I pay less interest overall?
Three levers: negotiate a lower rate, choose the shortest tenure whose EMI you can afford, and make prepayments when allowed — prepayments reduce the outstanding principal, which is what interest is charged on.
Is this the same as an amortization calculator?
Yes — the year-by-year table below the result is an amortization schedule: it shows how much of your payments go to principal versus interest each year, and the balance still owed.