About the Loan EMI calculator
An equated monthly instalment (EMI) is the fixed amount a borrower pays each month until a loan is repaid. The EMI calculator works it out from the loan amount, the interest rate and the term.
How the Loan EMI calculator works
EMI = P × i × (1 + i)^n ÷ [(1 + i)^n − 1]
- P
- Loan amount
- i
- Annual interest rate ÷ 12 ÷ 100
- n
- Number of monthly instalments
Each EMI pays that month’s interest on the outstanding balance and repays part of the principal. Early EMIs are mostly interest; later ones are mostly principal.
The rate is held fixed for the whole term. On a floating-rate loan, the EMI or the term changes when the rate changes.
Worked example
- Loan amount
- ₹10,00,000
- Annual interest rate
- 9%
- Time period
- 10 years
Example inputs
- Monthly EMI
- ₹12,667.58
- Total interest
- ₹5,20,109.29
- Total repayment
- ₹15,20,109.29
Calculated result
Why use a Loan EMI calculator?
- Check whether an EMI fits your monthly budget before you borrow.
- Compare offers with different rates and terms.
- See how much a longer term adds to total interest.
Loan EMI calculator FAQs
What does EMI stand for?
Equated monthly instalment: a fixed monthly payment covering interest and part of the principal.
Does a longer term reduce the cost of a loan?
It lowers the EMI but raises the total interest, because the balance is outstanding for longer.
Does the EMI include fees?
No. Processing fees, insurance and taxes on fees are extra. Lenders must show the full cost as the annual percentage rate (APR) in the Key Fact Statement.
What happens to my EMI if the rate changes?
On a floating-rate loan the lender either changes the EMI or keeps it and changes the number of instalments, as the loan terms and RBI rules allow.
How can I reduce my total interest?
By borrowing less, choosing a shorter term or prepaying. The loan prepayment calculator shows the effect of extra payments.