Loan EMI Calculator

Business & Finance

Loan EMI Calculator

The loan EMI calculator works out the equated monthly instalment on a home, car, personal or business loan. Enter the amount, the yearly interest rate and the tenure to see the EMI, the total interest you will pay, the total repayment and how the balance falls year by year.

  • Monthly EMI
  • Total interest
  • Yearly schedule
  • Updated Nov 5, 2026

The EMI formula

EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1)

P is the loan principal, r is the monthly interest rate (yearly rate ÷ 12 ÷ 100) and n is the number of monthly instalments. Each EMI is the same, but early payments are mostly interest and later ones mostly principal.

Example. A loan of 1,000,000 at 12% a year for 5 years: r = 0.01, n = 60. EMI = 22,244.45. Total payment = 1,334,667 and total interest = 334,667.

Ways to cut the cost

  • A shorter tenure raises the EMI but cuts total interest sharply.
  • Part-prepayments reduce principal early, when interest is highest.
  • Compare offers by total interest, not by EMI alone.

Questions people ask

Does the rate stay fixed?

On a fixed-rate loan, yes. On a floating-rate loan the rate and EMI or tenure change when the benchmark moves, so this shows today’s rate only.

Are processing fees included?

No. Fees, insurance and taxes are extra. Add them to the loan amount if they are financed.

EMI versus a simple interest loan?

EMI loans charge interest on the outstanding balance each month, which is different from flat-rate quotes. See the simple interest calculator for the flat method.

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