Loan & EMI Calculator
Calculate monthly EMI, total interest, and total payment for any loan amount, rate, and tenure.
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How to use this calculator
P = Principal, r = monthly interest rate (annual rate ÷ 12 ÷ 100), n = total number of monthly payments.
- 1
Enter the total loan amount you are borrowing.
- 2
Enter the annual interest rate (e.g. 8 for 8%).
- 3
Enter the loan tenure in years.
- 4
The calculator shows your monthly EMI, total interest paid, and total repayment amount.
Frequently asked questions
What is EMI?
EMI (Equated Monthly Instalment) is the fixed amount you pay each month to repay a loan. Each EMI contains a portion of the principal and a portion of the interest. Early payments are mostly interest; later payments are mostly principal.
How can I reduce my EMI?
You can reduce your EMI by: (1) increasing the loan tenure — longer tenure means smaller monthly payments but more total interest; (2) making a larger down payment to reduce the principal; (3) negotiating a lower interest rate; (4) prepaying part of the principal during the loan.
What happens if I pay more than the EMI?
Paying extra reduces your principal faster, which reduces total interest paid and can shorten the loan tenure. Many lenders allow prepayment with no or minimal penalty — check your loan agreement.
Is this calculator for all loan types?
Yes — the EMI formula works for personal loans, car loans, home loans, student loans, and business loans with fixed interest rates. For variable-rate loans, EMI changes when rates change.
Loan and EMI calculation explained
How loan EMI is calculated
The EMI formula uses compound interest: EMI = P × r(1+r)^n / ((1+r)^n − 1). Where P = principal, r = monthly rate (annual rate ÷ 12 ÷ 100), n = number of months. This formula ensures that each monthly payment covers the interest accrued plus reduces the principal.
Effect of tenure on total cost
Longer tenure = lower EMI but much more total interest. A $100,000 loan at 8%: 5-year tenure → EMI $2,028, total interest $21,659. 10-year tenure → EMI $1,213, total interest $45,593. 20-year tenure → EMI $836, total interest $100,745. Paying for 20 years costs more in interest than the original loan amount.
Tips to reduce loan cost
Make a larger down payment to reduce principal. Choose the shortest tenure you can afford. Make occasional lump-sum prepayments — even one extra payment per year significantly reduces total interest. Compare lenders: a 1% difference in interest rate on a $200,000 loan can save $30,000+ over 20 years.
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Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →