EMI Calculator
Calculate your monthly loan EMI, total interest payable and total payment amount.
Calculate EMI
Monthly EMI
Total Interest Payable
Total Payment
Quick Summary
EMI (Equated Monthly Installment) is the fixed amount a borrower pays every month towards a loan, covering both principal and interest.
Enter your loan amount, annual interest rate and tenure in months to instantly calculate your EMI, total interest and total payment.
How to Use This Calculator
- Enter the loan amount you plan to borrow.
- Enter the annual interest rate and loan tenure in months.
- Click Calculate EMI to see your monthly instalment and total interest payable.
What is EMI?
EMI stands for Equated Monthly Installment. It is the fixed monthly payment a borrower makes to repay a loan, such as a home loan, car loan, education loan or personal loan, over a specified period. Each EMI includes a portion of the principal amount and a portion of the interest charged on the outstanding balance.
Calculating EMI in advance helps borrowers plan their monthly budget, compare loan offers from different lenders, and understand the total cost of borrowing over the loan tenure.
Formula
EMI = [P × R × (1 + R)^N] ÷ [(1 + R)^N − 1]
Where P = Principal Loan Amount, R = Monthly Interest Rate (Annual Rate ÷ 12 ÷ 100), and N = Loan Tenure in Months
Total Payment = EMI × N
Total Interest Payable = Total Payment − Principal Loan Amount
Worked Example
Loan Amount = ₹500,000
Annual Interest Rate = 10%
Loan Tenure = 60 Months
Monthly Rate = 10 ÷ 12 ÷ 100 = 0.008333
EMI ≈ ₹10,624
Total Payment ≈ ₹637,440
Total Interest Payable ≈ ₹137,440
Benefits
- Plan your monthly budget in advance.
- Compare different loan offers easily.
- Understand the total cost of a loan.
- See the impact of tenure on total interest.
- Make informed borrowing decisions.
Practical Use Cases
- Comparing EMI amounts across different tenures before choosing an education or personal loan.
- Checking whether a loan's monthly EMI realistically fits your (or your family's) monthly budget.
Common Mistakes to Avoid
- Entering the annual interest rate when the field expects it — some students mistakenly enter a monthly rate, inflating the EMI significantly.
- Ignoring processing fees and other loan charges, which aren't part of the EMI formula but do affect the real cost of the loan.
- Choosing the longest tenure only to minimise the monthly EMI, without checking how much extra interest that adds up to overall.
Frequently Asked Questions
Your EMI depends on three factors: the loan amount, the interest rate, and the loan tenure. A higher loan amount or interest rate increases EMI, while a longer tenure reduces the monthly EMI but increases total interest paid.
Generally, yes. While a longer tenure reduces the monthly EMI amount, it increases the total interest paid over the life of the loan because interest accrues for a longer period.
Enter the annual interest rate as quoted by your lender. The calculator automatically converts it to a monthly rate for the EMI calculation.