EMI Calculator
Monthly EMI, total interest and total repayment for any loan.
How the EMI calculator works
An EMI (equated monthly instalment) is a fixed monthly payment that repays a loan with interest over its tenure. The calculator uses the standard reducing-balance formula: EMI = P x r x (1 + r)n / ((1 + r)n - 1), where P is the loan amount, r the monthly rate (annual rate / 12 / 100) and n the number of months.
Worked example
| Loan amount | Rs 10,00,000 |
| Interest rate | 9% a year (0.75% a month) |
| Tenure | 5 years (60 months) |
| Monthly EMI | Rs 20,758 |
| Total interest | Rs 2,45,501 |
| Total repayment | Rs 12,45,501 |
In the first month, interest is Rs 7,500 (0.75% of Rs 10,00,000) and the remaining Rs 13,258 reduces the principal. Each month the balance falls, so the interest share shrinks and the principal share grows.
Tips before you borrow
- Compare the total interest, not just the EMI - a longer tenure always costs more overall.
- Prepayments early in the loan save the most interest, because that is when the balance is highest.
- Ask the lender for the effective annual rate including processing fees.
Frequently asked questions
How is EMI calculated?
EMI = P x r x (1 + r)^n / ((1 + r)^n - 1), where P is the loan amount, r is the monthly interest rate (annual rate / 12 / 100) and n is the number of monthly instalments.
What is the EMI on a Rs 10 lakh loan at 9% for 5 years?
About Rs 20,758 a month. Over 60 months you repay about Rs 12,45,501 in total, of which about Rs 2,45,501 is interest.
Why is most of the early EMI interest?
Interest is charged on the outstanding balance, which is highest at the start. In the example above the first EMI has about Rs 7,500 of interest and only Rs 13,258 of principal; the split reverses over time.
Does a longer tenure reduce the total cost?
No. A longer tenure lowers the monthly EMI but increases the total interest paid, because the balance stays outstanding for longer.