EMI Calculator

Calculate EMI payments, loan affordability, total interest costs, and repayment schedules for home, personal, and car loans.

EMI Calculator

Calculate the equated monthly instalment (EMI) on a loan from the principal, the annual interest rate, and the repayment term. The result shows the fixed monthly payment along with the total interest paid over the life of the loan.

EMI formula

The standard formula for a fixed-rate loan repaid in equal monthly instalments is:

EMI = P × i × (1 + i)^n / ((1 + i)^n − 1)

  • P is the principal, the amount borrowed.
  • i is the monthly interest rate, the annual rate divided by 12. An annual rate of 9% gives i = 0.09 / 12 = 0.0075.
  • n is the number of monthly payments, the term in years multiplied by 12.

Every EMI contains both interest and principal. Early in the term most of the payment covers interest; as the outstanding balance falls, a growing share of each instalment repays principal. This shift is what an amortization schedule shows month by month.

Worked example

Suppose you borrow 500,000 at an annual rate of 9% for 5 years (60 months).

  • Monthly rate: i = 0.09 / 12 = 0.0075
  • Growth factor: (1.0075)^60 ≈ 1.5657
  • EMI: 500,000 × 0.0075 × 1.5657 / 0.5657 ≈ 10,379

The monthly instalment is about 10,379. Over 60 payments you repay roughly 10,379 × 60 = 622,740 in total, of which about 122,740 is interest.

When to use this calculator

  • Before applying for a loan, to check whether the monthly payment fits your budget at the rates lenders are quoting.
  • Comparing offers with different rates or terms, since a slightly lower rate or shorter term can change total interest substantially.
  • Choosing a term length, to see the trade-off between a lower EMI over a longer term and less total interest over a shorter one.
  • Planning prepayments, by recalculating the EMI or remaining term after a lump-sum payment reduces the principal.

Tips for interpreting the result

  • A longer term lowers the EMI but raises total interest; run both scenarios before deciding.
  • Compare loans on total interest and the annual percentage rate, not the EMI alone, because fees and charges are not part of this formula.
  • Many lenders suggest keeping all debt payments combined below roughly a third of monthly income; treat any such threshold as a guideline, not a rule.
  • If your loan has a floating rate, the EMI or the term will change when the rate resets, so recompute after each revision.
  • Check whether interest compounds monthly; some products quote flat rates that are not directly comparable to reducing-balance EMIs.

Related calculators

Use the amortization calculator to see the month-by-month split between principal and interest, and the budget calculator to check that the EMI fits your monthly cash flow. The business loan calculator applies similar mechanics to commercial borrowing, the income tax calculator helps estimate the take-home pay available for repayments, and the currency converter is useful when comparing loans quoted in different currencies.

Results are estimates based on the numbers you enter; confirm exact instalments, fees, and rates with your lender before committing to a loan.

Frequently asked questions

What is an EMI?
An equated monthly instalment (EMI) is the fixed amount you pay a lender each month to repay a loan. Every EMI contains an interest portion and a principal portion. Early in the term most of the payment is interest; over time the principal share grows as the outstanding balance falls.
How is EMI calculated?
The standard formula is EMI = P × i × (1 + i)^n / ((1 + i)^n − 1), where P is the principal, i is the monthly interest rate (annual rate divided by 12), and n is the number of monthly payments. For example, 500,000 borrowed at 9% per year over 60 months gives an EMI of about 10,379.
Does a longer loan term lower my EMI?
Yes, spreading repayment over more months reduces each instalment, but it increases the total interest you pay over the life of the loan. Comparing both the EMI and the total interest for different terms shows the real trade-off.
What happens to my EMI if I prepay part of the loan?
A lump-sum prepayment reduces the outstanding principal, so either the EMI falls for the same term or the term shortens for the same EMI, depending on what the lender allows. Shortening the term usually saves more interest. Check whether your lender charges prepayment fees before deciding.
Why does my lender's EMI differ slightly from the calculator?
Lenders may round differently, charge processing fees, use a different day-count convention, or start interest from the disbursement date rather than the first full month. Floating-rate loans also reset the EMI when the benchmark rate changes. Treat the calculator's figure as a close estimate and confirm the exact schedule with the lender.
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