EMI Calculator
Work out the fixed monthly payment on a loan from three numbers: the amount borrowed, the annual interest rate, and how many years you will take to repay it. It uses the standard reducing-balance formula that banks use, and shows the total interest so you can see what the loan actually costs.
This is an illustrative estimate, using the standard reducing-balance EMI formula. It doesn't include processing fees, insurance or other charges your lender may add — confirm the exact figure with your bank before deciding. Amounts work in any currency — the result is in whatever currency you enter.
How to calculate a loan EMI
- Enter the loan amount.
- Enter the annual interest rate and the tenure in years.
- Read the monthly EMI, total payment and total interest below.
When you'd use this
- Comparing loan offers — Two lenders quoting different rates and terms are far easier to compare as monthly payments.
- Budgeting before you borrow — Checking whether a repayment fits your monthly income before committing to it.
- Choosing a tenure — Seeing how a longer term lowers the payment while raising the total interest.
- Checking a quoted figure — Confirming that the EMI a lender has quoted matches the rate and term they described.
Good to know
- It works in any currency — The calculation is arithmetic — enter amounts in rupees, dollars, euros or anything else and the answer comes back in the same units.
- Longer terms cost more overall — Stretching a loan reduces the monthly payment but increases the total interest, often substantially. Both figures are shown for that reason.
- Real loans carry extra costs — Processing fees, insurance and late charges are not part of the EMI formula, so a lender's total may be higher than this estimate.
- It assumes a fixed rate — On a floating-rate loan the payment changes whenever the rate does, and this figure would only hold for as long as the rate did.
Frequently asked questions
What formula does this use?
The standard reducing-balance EMI formula: EMI = P × r × (1+r)ⁿ / ((1+r)ⁿ − 1), where P is the loan amount, r is the monthly interest rate and n is the number of monthly instalments.
Does this include processing fees or insurance?
No — this is the EMI on the loan amount only. Your lender may add other charges.
How is EMI actually calculated?
The standard reducing-balance formula is P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1), where P is the amount borrowed, r is the monthly rate — the annual rate divided by twelve — and n is the number of months. Our guide on how EMI is calculated works through a full example.
Why does the total interest look so high?
Because interest accrues over the whole term. On a long loan the interest can approach or exceed the amount borrowed, which is exactly why seeing the total before signing is worth a minute.
Is this a loan offer or financial advice?
Neither. It is a calculator that applies a standard formula to the numbers you type. Your lender's own figures, terms and fees are what actually apply.