An Equated Monthly Instalment (EMI) is the fixed amount you pay your lender each month. Every instalment covers part interest and part principal, and by the end of the tenure the loan is fully repaid.

How is EMI calculated?

EMI uses the reducing-balance formula EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1), where P is the principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly instalments.

Does a longer loan tenure reduce my EMI?

Yes. A longer tenure spreads repayment over more months, lowering each EMI, but it increases the total interest you pay because the balance stays outstanding for longer.

Should I enter the monthly or annual interest rate?

Enter the annual interest rate. The calculator automatically converts it to a monthly rate and applies it across the number of months in your chosen tenure.

How can I reduce the total interest on my loan?

Choose a shorter tenure, secure a lower interest rate, or make prepayments early in the term when the outstanding balance — and therefore the interest charged — is at its highest.

🏦 Loan EMI Calculator

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ℹ️ Estimate only. Actual EMI may vary with processing fees, insurance, changing rates and your lender's rounding and day-count rules.

About the Loan EMI Calculator

The Loan EMI Calculator works out your Equated Monthly Instalment — the fixed amount you repay every month — for a home loan, car loan or personal loan. Enter the loan amount, annual interest rate and tenure to see the monthly EMI, the total interest you will pay and the total repayment. It works in any major currency.

The EMI formula

EMI is calculated with the reducing-balance formula:

EMI = P × r × (1 + r)ⁿ ÷ [(1 + r)ⁿ − 1]
P = principal (loan amount)
r = monthly interest rate = annual rate ÷ 12 ÷ 100
n = number of monthly instalments

For example, a $200,000 loan at 8.5% over 20 years (240 months) has an EMI of about $1,736, with roughly $216,500 of total interest.

What affects your EMI?

A longer tenure lowers the monthly EMI but increases total interest, because you borrow for longer. A higher rate raises both. Even a small rate reduction or a modest prepayment can save a large amount of interest over the life of a long loan — try different values above to compare.

EMI vs total interest

The "interest share" figure shows what proportion of your total repayment is interest rather than principal. On long home loans this can exceed the amount borrowed, which is why overpaying early — when the balance is highest — is so effective.

Frequently Asked Questions

What is an EMI? An Equated Monthly Instalment is the fixed monthly payment that repays both interest and principal over the loan term.

Does a longer tenure reduce my EMI? Yes, but you pay more total interest because the balance is outstanding for longer.

Is the rate monthly or annual? Enter the annual rate — the calculator converts it to a monthly rate internally.

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Important Note: This tool is intended to provide estimates and should not be used as a substitute for professional advice. Information generated by these calculators may be incomplete and does not account for all individual circumstances. Always seek the counsel of a certified expert (such as a financial advisor, healthcare provider, or licensed engineer) before taking action based on these results.

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