Loan EMI Calculator
Find the monthly instalment (EMI), total interest and total repayment for a home, car or personal loan.
Loan EMI Calculator
An EMI (equated monthly instalment) is the fixed amount you pay each month until a loan is repaid. Part of each payment covers interest and the rest reduces the balance. Enter the loan amount, the yearly interest rate and the term, and the calculator shows the monthly payment, the total interest you will pay and the total cost of the loan.
How to use Loan EMI Calculator
- Enter the loan amount you plan to borrow.
- Enter the yearly interest rate the lender quotes, such as 12 for 12%.
- Enter the loan term and choose years or months.
- Read the monthly EMI, total interest and total payable. Change the term to see how a longer loan lowers the payment but raises the interest.
When it comes in handy
- Comparing loan offers from different banks.
- Deciding how long a term you can afford.
- Checking that a lender's quoted instalment is correct.
Frequently asked questions
- What formula does it use?
- The standard reducing-balance formula: EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1), where P is the loan amount, r is the monthly rate (yearly rate ÷ 12 ÷ 100) and n is the number of months.
- Does the EMI include fees and insurance?
- No. Processing fees, insurance and taxes vary by lender and are not included. Ask the lender for the APR, which includes fees, to compare offers fairly.
- Is this suitable for flat-rate loans?
- No. Some lenders charge interest on the original amount for the whole term (a flat rate), which costs much more than the same reducing rate. This calculator assumes a reducing balance, which is what most banks use.