Loan EMI Calculator

What an EMI is

An Equated Monthly Installment is the fixed amount a borrower pays each month on a fixed-rate amortising loan — the same number every month for the entire tenure. Each payment splits between interest (charged on the outstanding balance) and principal (which reduces the balance). Early payments are mostly interest because the balance is large; later payments are mostly principal because the balance has fallen. The math is the standard amortisation formula used by most fixed-rate consumer loans worldwide. The term "EMI" is widely used in South Asian markets and increasingly in others; in markets where the term "monthly mortgage payment" or "fixed monthly loan payment" is more common, the underlying calculation is identical.

How to use it

Enter the loan principal, the annual interest rate, and the tenure in months. The calculator returns the monthly EMI, the total repaid over the full tenure, the total interest paid, and the interest as a percentage of the principal for context. The currency selector at the top of the calculator changes formatting throughout — the math itself is currency-neutral.

Worked example

Picture a 100,000 loan at 9% APR over 60 months (currency follows the selector). The monthly rate is 9% ÷ 12 = 0.75%. Plugging into the EMI formula gives a monthly payment of approximately 2,075.84. Over 60 months that's about 124,550 in total repayment, with the difference of around 24,550 paid as interest — roughly 24.6% of the original principal. Doubling the tenure to 120 months at the same rate drops the monthly EMI to about 1,267 but raises total interest to around 52,011 (about 110% more than the 5-year case), illustrating the trade-off between monthly affordability and lifetime cost.

How the math works

EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1) where P is the principal, r is the monthly interest rate (annual ÷ 12 ÷ 100), and n is the tenure in months. Total repayment = EMI × n. Total interest = total repayment − principal. The formula treats interest as compounding monthly within the loan and assumes equal monthly payments throughout. The formula box below reproduces the expression in standard notation.

Tenure trade-off

Lowering the EMI by extending the tenure trades short-term affordability for total cost. As an orientation, doubling the tenure usually lowers the EMI by less than 50% but more than doubles the total interest paid — the longer the principal stays outstanding, the more interest accrues. Running the calculator at a few tenure points usually clarifies the trade-off more directly than reading any general statement.

Why a lender's actual EMI may differ

This calculator returns the headline math result. Real lender EMIs can differ slightly because lenders sometimes include a small processing fee in the EMI, round to a convenient whole number in the local currency, or use a slightly different daycount convention. These adjustments typically move the actual figure by at most a couple of percentage points; for a precise quote, the lender's offer document is authoritative.

What this calculator doesn't capture

Processing fees, prepayment provisions, late-payment behaviour, variable-rate loans (where the EMI may adjust at reference-rate changes), insurance products bundled into the loan, and tax treatment that varies by country and product type are all outside this calculation. The figures are an estimate of the headline EMI based on the three inputs entered, useful as a baseline before factoring in lender-specific terms.