Loan EMI Calculator

About the loan EMI calculator

An EMI (equated monthly instalment) is the fixed amount you repay each month on a loan. Each instalment covers the interest for that month plus part of the principal, so the interest share is highest in the early months and shrinks over time. This calculator shows your EMI, the total interest you will pay and a year-wise breakup, so you can compare loan offers before you sign.

How to use it

1. Enter the loan amount.
2. Enter the annual interest rate quoted by the lender.
3. Enter the tenure in years or months.
4. Read the monthly EMI, total interest, total payment and the year-wise principal and interest split.

Tips

• Compare total interest, not just EMI. A longer tenure lowers the monthly EMI but raises the total interest. Try two or three tenures and look at the total payment.
• Check the rate type. This calculator assumes a fixed rate on a reducing balance. Floating-rate loans change over time, so treat the result as an estimate.
• Budget for fees. Processing fees, insurance and prepayment charges are not included. Ask your lender for the all-in cost.

Frequently asked questions

How is EMI calculated?

EMI = P x r x (1+r)^n / ((1+r)^n - 1), where P is the loan amount, r is the monthly interest rate (annual rate divided by 12 and 100) and n is the number of months.

What is the difference between flat and reducing-balance interest?

On a reducing balance, interest is charged only on the outstanding principal, so it falls as you repay. Flat-rate interest is charged on the original amount for the whole tenure and costs more for the same quoted rate. This calculator uses reducing balance.

Can I use it for a business loan?

Yes. It works for any loan with equal monthly instalments, including business, vehicle, home and personal loans.

Is the calculator free?

Yes. It is free, needs no signup and runs in your browser.