EMI stands for Equated Monthly Instalment. It is the fixed amount you pay every month to repay a loan, which includes both principal and interest. The EMI stays constant throughout the loan tenure in most cases, making it easy to plan your monthly budget.

What is the difference between principal and interest?

Principal is the original amount you borrowed. Interest is the extra cost charged by the lender for using their money. Over the life of the loan, you pay back both the principal and the total interest, which together make up the total payment.

Does a longer tenure mean lower EMI?

Yes. A longer tenure spreads the payments over more months, which lowers the monthly EMI. However, the total interest you pay increases because interest accrues for a longer period. A shorter tenure means higher EMI but significantly less total interest.

How does the interest rate affect my loan?

Even a small change in the interest rate has a big impact on the total amount you pay. For a ₹50 lakh loan over 20 years, going from 8% to 9% increases the EMI by around ₹3,000 per month and adds roughly ₹7 lakh in total interest. That is why comparing rates across lenders matters.

What is the amortization schedule?

An amortization schedule is a year-by-year (or month-by-month) breakdown of your loan payments, showing how much goes toward principal vs interest, and how the outstanding balance decreases over time. In the early years, most of your EMI goes toward interest; in later years, it shifts to principal.

Can I use this for home, car, or personal loans?

Yes. The EMI formula is the same for any loan — home loan, car loan, personal loan, education loan, or business loan. Simply enter the principal amount, interest rate, and tenure, and the calculator gives you the EMI and full breakdown.

Is my loan data saved or shared?

No. All calculations happen entirely in your browser using JavaScript. Your loan amount, interest rate, and tenure are never sent to a server, stored, or shared. This is completely private — even if you disconnect from the internet, the calculator continues to work.

💵

loan-calculator

Q: How is EMI calculated?

EMI is calculated using the formula: EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1), where P is the principal loan amount, r is the monthly interest rate (annual rate divided by 12 and then by 100), and n is the total number of monthly installments. Our calculator uses this exact formula.

Calculate monthly EMI, total interest and total payment for any loan.

Currency

Loan Amount

₹

Annual Interest Rate

% p.a.

Loan Tenure

years

months

years

0 months total

Monthly EMI

₹0

— monthly installments

Principal

₹0

Total Interest

₹0

Total Payment

₹0

Interest % of Total

Principal Interest

₹0 ₹0

📊 Yearly Breakdown

Year	Principal Paid	Interest Paid	Balance

EMI Calculator

Understanding the Equated Monthly Instalment (EMI) is essential when taking out a loan whether it be for buying a house, car, education or personal loan. However calculating your EMI involves complicated compound interest calculations that are difficult to perform without help.

Our EMI calculator can give you the results within seconds. Just enter the loan amount, interest rate and term and the calculator will show you your monthly instalments (EMI), interest paid in total and also the annual amortisation schedule.

How to Use

Select your currency (INR/USD/EUR/GBP).
Enter the loan amount (the total you wish to borrow).
Enter the interest rate (the % interest rate stated by your lender e.g. 8.5% per annum).
Enter the term (Years and Months, Months or Years). You can enter it in any format you wish and the calculator will convert the figures into the total months.
You will get your results instantly including, monthly EMI, total payment, interest paid in total, principal to interest ratio bar and annual amortisation table.

Benefits of Using Our EMI Calculator

Most EMIs can be found online however there are a few benefits to using this one:

It allows you to add the term in Years and months, Months or Years. Most calculators only allow you to add Years.
You get a detailed breakdown of your results. As well as having your EMI you get the total payment, interest paid (and shown as a percentage of total) and principal to interest ratio bar.
You also get an annual amortisation schedule. This shows how much of your payment goes towards principal and interest each year. This can be scrolled through.
We support INR, USD, EUR and GBP.
All calculations are done in your browser. We do not store or send your loan details to any server.

How to Calculate

To calculate your EMI you use the compound interest formula:

EMI = P x r x (1 + r)^n / [(1 + r)^n - 1]

P is the principal loan amount. R is the monthly interest rate (Annual Interest / 12 / 100). N is the total number of monthly payments. This calculation ensures that you have both principal and interest in your monthly payments and your balance will be zero at the end.

In the early years of your loan most of your payment will go towards paying interest as your balance is high. As the years go on your balance will reduce meaning more of your payments will go towards paying off the principal. This is why if you take out a 20 year mortgage with a high interest rate you are likely to pay more interest than principal. Therefore paying off early can save you a lot of money.

Impact of Term

Your chosen term will have a massive impact on your monthly payments and total interest. Here is an example of what your payments could be for a loan of 50 Lakhs at 8.5% interest.

15 Years = Monthly EMI of ~49,300 and Total Interest of ~38.7 Lakhs.
20 Years = Monthly EMI of ~43,400 and Total Interest of ~54.1 Lakhs.
25 Years = Monthly EMI of ~40,200 and Total Interest of ~70.7 Lakhs.

The longer the term the less you will pay monthly however you will pay a lot more in total interest. If you choose a shorter term you will pay more monthly however you will pay a lot less in total interest.

FAQs

What is EMI?

EMI stands for Equated Monthly Instalment. An EMI is a set amount you pay each month to pay off your loan. This will include both principal and interest. In most scenarios your payments will stay the same throughout the term of your loan helping you to budget.

How is EMI calculated?

EMI is calculated using the formula: EMI = P x r x (1 + r)^n / [(1 + r)^n - 1]. P being the principal loan amount, R being the monthly interest rate (Annual Interest / 12 / 100) and N being the number of monthly payments. This is the formula used in our EMI calculator.

What is the principal and interest?

The principal is the amount you originally borrowed. The interest is the additional charge you have to pay for using the lenders money. Throughout the course of your loan you will pay the principal and total interest.

Will I pay less if I have a longer term?

Yes. If you have a longer term you will be paying over more months meaning your payments will be smaller. However you will pay more overall due to the interest accumulating for longer. If you have a shorter term your payments will be higher but you will pay a lot less overall.

How does the interest rate impact my loan?

Even if there is a small change in interest rate this can have a big impact on how much you pay overall. For example if you have a loan of 50 Lakhs over 20 years and your interest rate rises from 8% to 9% you will be paying an additional ~3,000 per month. This will add ~7 Lakhs onto your total interest. This is why comparing rates with different lenders is important.

What is amortisation?

Amortisation is a schedule showing how much of your payments go towards principal and interest each year (or month). In the early years of your loan most of your payments will go towards paying interest however as the years go on more will go towards paying principal.

Other Tools You May Like

If you found our EMI calculator useful you may also like our SIP Calculator to calculate mutual fund returns or our Percentage Calculator.