Loan EMI Calculator
Estimate monthly EMI, total interest, and total repayment amount.
How your EMI is worked out
An EMI — equated monthly instalment — is the fixed amount you pay every month until a loan is cleared. Each instalment is part interest and part principal, but early on it is mostly interest, which is why the balance falls slowly at first. This EMI calculator covers home loans, car loans and personal loans, and it also accepts an optional extra monthly payment so you can see how much interest overpaying saves.
How to use the Loan EMI Calculator
- Enter the Loan Amount (P).
- Enter the Annual Rate (%) your lender quoted.
- Set the Tenure (years).
- Optionally add an Extra Payment to see the loan close early and the interest drop.
Formula and a worked example
EMI = P·r·(1 + r)n ÷ ((1 + r)n − 1)
Here r is the monthly rate (annual rate ÷ 12 ÷ 100) and n is the total number of months. Total interest is EMI × n − P. Stretching the tenure lowers the monthly figure but raises the total interest, sometimes dramatically.
Worked example
A 2,000,000 home loan at 9% over 20 years gives an EMI of about 17,995 and total interest of roughly 2,318,800 — more than the amount borrowed. Cut the tenure to 15 years and the EMI rises to about 20,285, but total interest falls to around 1,651,300.
Frequently asked questions
Does a longer tenure make a loan cheaper?
No. It makes each month cheaper but the loan more expensive overall, because interest is charged on the outstanding balance for more months.
How much does one extra payment a month save?
More than most people expect, because every extra rupee goes straight against principal. Enter a figure in the Extra Payment field to see the exact saving for your loan.
Why is my early EMI almost all interest?
Interest is charged on the balance outstanding, which is highest at the start. As principal falls, the interest share of each identical instalment falls with it.
Is EMI the same for home, car and personal loans?
The formula is identical. Only the rate and tenure differ — personal loans carry higher rates over shorter terms, home loans the opposite.
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