Calculate monthly loan EMI, total interest, and amortisation breakdown. Supports home loans, car loans, and personal loans.
Loan amount ($)
Annual interest rate (%)
Tenure
enter loan details
Monthly EMI
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Total Interest
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Total Amount
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Full breakdown
Decision Support
Check Interest % against the principal
If total interest is more than 50-60% of the principal, a shorter tenure or a lower rate would meaningfully reduce your total cost — this figure is shown directly in the breakdown above.
Compare against your income before committing
Most lenders cap EMI at 40-50% of net monthly income. Check this EMI against that threshold before treating the loan as affordable.
A longer tenure lowers EMI but raises total cost
Re-run this calculator at a shorter tenure to see the trade-off directly — a higher monthly payment now often means significantly less paid overall.
➜ Next step: Comparing more than one loan offer? Use the Loan EMI Comparison Calculator to see up to 4 loans side by side.
About EMI
What is EMI?
Equated Monthly Instalment — the fixed monthly payment for a loan covering both principal repayment and interest.
Formula
EMI = P × r × (1+r)ⁿ / ((1+r)ⁿ − 1) where P = principal, r = monthly rate, n = number of months.
Total interest
Long-tenure loans pay significantly more total interest. Even 1% rate reduction saves substantially over 20 years.
How to Use the EMI Calculator
Enter loan amount — the total amount you want to borrow or the principal of your loan.
Enter interest rate — the annual interest rate offered by your bank or lender. Enter as a percentage (e.g. 8.5 for 8.5% per year).
Set loan tenure — the repayment period in months or years. Longer tenure means lower EMI but higher total interest paid.
Click Calculate — the calculator shows your monthly EMI, total amount payable, and total interest charged over the loan period.
Review the amortisation table — see exactly how much of each monthly payment goes toward principal vs interest. In early months, most of your EMI pays interest.
💡 Key insight: Even a small reduction in interest rate saves significantly over a long loan. On a $200,000 mortgage over 20 years, reducing from 8% to 7% saves over $28,000 in total interest. Always compare rates from multiple lenders before committing.
Understanding EMI
📐 EMI Formula
EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1). Where P = principal, r = monthly interest rate (annual rate ÷ 12), n = number of months. This ensures equal payments that fully repay the loan at the end of tenure.
💰 Principal Component
The portion of each EMI that reduces your outstanding loan balance. In early months this is small — most of your payment covers interest. It grows progressively as the loan balance reduces.
📊 Interest Component
The portion covering the cost of borrowing. Highest in month 1 (calculated on full principal), lowest in the final month. Total interest = (EMI × months) − Principal.
📅 Tenure Impact
Doubling tenure roughly halves the EMI but dramatically increases total interest. A $100,000 loan at 8%: 10 years = $1,213 EMI, $45,593 total interest. 20 years = $836 EMI, $100,748 total interest — more than the loan itself.
⚡ Prepayment Benefit
Making extra payments toward principal reduces both tenure and total interest dramatically. Even one extra EMI per year can reduce a 20-year mortgage by 3–4 years.
🏦 Fixed vs Floating Rate
Fixed rate: same EMI throughout. Floating rate: EMI changes with market rates. Fixed gives certainty; floating can be cheaper if rates fall but riskier if rates rise.
Smart EMI Planning
The 40% EMI rule
Financial advisors recommend keeping total monthly EMI payments below 40% of your gross monthly income. This ensures you have sufficient cash flow for living expenses, savings, and emergencies. Before taking any loan, calculate whether the EMI fits within this threshold.
Choosing the right tenure
Shorter tenure means higher EMI but significantly less total interest paid. If you can comfortably afford the higher EMI, choose the shortest tenure possible. The total interest saved over a shorter tenure almost always outweighs the convenience of lower monthly payments.
Prepayment strategy
Most loans allow partial prepayment — paying extra amounts toward principal beyond your regular EMI. Even small additional payments made early in the loan term have an outsized impact on reducing total interest. A $500 extra payment in year 1 of a 20-year mortgage saves several times that amount in interest over the loan's lifetime.
🏦 Before taking any loan: Use this calculator to compare three scenarios — minimum tenure you can afford, maximum tenure offered, and a middle option. The total interest difference between minimum and maximum tenure is often shocking and makes the choice clear.
EMI Formula
EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)
P — Principal
The loan amount borrowed, before interest.
r — Monthly rate
Annual interest rate ÷ 12 ÷ 100, expressed as a decimal.
n — Tenure in months
Total number of monthly payments over the life of the loan.
Worked example
$500,000 principal, 8.5% annual rate, 20-year (240-month) tenure: monthly rate = 8.5 ÷ 12 ÷ 100 = 0.007083. EMI = 500,000 × 0.007083 × (1.007083)^240 ÷ ((1.007083)^240 − 1) = $4,339.12/month. Total paid over 240 months ≈ $1,041,388, of which ≈$541,388 is interest — more than the original principal.
Assumption: uses the standard reducing-balance method most banks use — confirm your lender uses the same method, since a flat-rate loan at the same quoted rate produces a different, generally higher, effective cost.
Common Mistakes
Comparing rates without matching tenure
A lower rate over a longer tenure can cost more in total interest than a higher rate over a shorter one — always check total interest, not just the headline rate.
Confusing flat rate with reducing balance
This calculator uses reducing balance (interest charged only on the outstanding principal). A flat-rate loan quoted at the same percentage costs meaningfully more — confirm which method your lender actually uses.
Sizing the loan to what's approved, not what's comfortable
Banks may approve an EMI up to 40-50% of income — that's a lending limit, not a recommendation for your own budget.
Forgetting fees and insurance
This calculator computes principal and interest only — processing fees, mandatory insurance, and other charges add to the real cost of the loan.
Frequently Asked Questions
What is EMI?
Equated Monthly Instalment — the fixed monthly payment covering both interest and principal repayment, structured so the loan is fully repaid by end of tenure.
What is the EMI formula?
EMI = P × r × (1+r)ⁿ / ((1+r)ⁿ − 1), where P = principal, r = monthly rate (annual rate / 12 / 100), n = total months.
Shorter vs longer tenure?
Shorter tenure = higher EMI but less total interest. Longer tenure = lower EMI but significantly more interest overall. Choose the shortest tenure your budget can support.