EMI Calculator
Calculate the monthly EMI and total interest for any reducing-balance loan.
In Short
An EMI calculator shows the fixed monthly instalment, total interest and total repayment for a loan amount, interest rate and tenure.
How the EMI Calculator Works
EMI uses the reducing-balance method. Each payment covers the interest due on the outstanding balance and repays part of the principal. Early payments contain more interest, while later payments repay more principal.
A longer tenure lowers the monthly EMI but usually raises total interest. Compare both before choosing a repayment term.
EMI Formula
P - loan principal
r - monthly interest rate
n - total monthly instalments
Total interest = EMI × n - P
Worked Example
A ₹50,00,000 loan at 8.5% p.a. for 20 years has an estimated EMI of ₹43,391 across 240 instalments. Total interest is about ₹54,13,879, making total repayment about ₹1,04,13,879.
Frequently Asked Questions
What is an EMI?
EMI stands for Equated Monthly Instalment. It is the fixed amount paid to a lender each month and includes both principal repayment and interest.
How is loan EMI calculated?
EMI is calculated from the loan principal, monthly interest rate and total number of monthly instalments. The standard reducing-balance formula is EMI = P × r × (1 + r)^n / ((1 + r)^n - 1).
Does a longer loan tenure reduce EMI?
Yes. A longer tenure usually lowers the monthly EMI because repayment is spread across more months, but it increases the total interest paid over the life of the loan.
Can I use this calculator for any type of loan?
Yes. You can estimate EMI for a home, car, personal, education or other reducing-balance loan by entering its amount, annual interest rate and tenure.
Does the EMI include processing fees or insurance?
No. The result covers principal and interest only. Processing fees, insurance, taxes, penalties and other lender charges can increase the actual cost.
Will a floating interest rate change my EMI?
It can. When a floating rate changes, the lender may revise the EMI, the remaining tenure, or both. This calculator assumes the entered rate remains constant.