Loan & EMI Calculator
Enter your loan amount, interest rate, and tenure to instantly calculate your monthly EMI, total repayment, and a full month-by-month amortization schedule.
What is EMI?
An EMI (Equated Monthly Instalment) is the fixed monthly payment made to a lender to repay a loan over a set period. Each payment covers both accrued interest and a portion of the principal balance, ensuring the loan is fully paid off by the end of the tenure.
The EMI Formula
EMI is calculated using the standard reducing-balance formula:
EMI = P × r × (1+r)^n / ((1+r)^n − 1)
Where P = principal, r = monthly rate (annual rate ÷ 12 ÷ 100), n = tenure in months. Early payments are mostly interest; later payments are mostly principal — this is the "front-loaded" nature of amortized loans.
Tips to Reduce Total Interest
- Make a larger down payment — reduces the principal and therefore total interest.
- Choose a shorter tenure — higher monthly EMI but dramatically less total interest paid.
- Make prepayments — paying extra toward principal each month can cut years off your loan.
- Negotiate a lower rate — even 0.5% less can save thousands over a long loan.
Frequently Asked Questions
EMI (Equated Monthly Instalment) is the fixed amount you pay each month to repay a loan over a defined period. Part of each payment covers interest; the rest reduces your principal balance.
EMI = P × r × (1+r)^n / ((1+r)^n − 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 1200), and n is the number of monthly payments.
A shorter tenure means higher EMI but much less total interest. A longer tenure lowers monthly payments but dramatically increases the interest cost. Use the calculator to compare scenarios — the difference is often surprising.
Yes, this calculator uses the standard reducing-balance formula used by banks worldwide. It assumes a fixed interest rate throughout the tenure. For variable-rate loans, actual payments may differ.