Work out your EMI (equated monthly installment) for a home, car, bike or personal loan. Enter the amount, annual interest rate and tenure, and this free loan EMI calculator shows the monthly payment, total interest and total cost, plus a full amortization schedule showing how much of each payment is interest and how much is principal.
EMI formula
Worked example
A loan of Rs 2,500,000 at 14% a year for 5 years: r = 0.14 ÷ 12 = 0.011667 and n = 60. EMI = 2,500,000 × 0.011667 × 1.011667⁶⁰ ÷ (1.011667⁶⁰ − 1) ≈ Rs 58,170 a month. Over 60 months you repay about Rs 3,490,000, so the interest cost is roughly Rs 990,000.
How to lower your EMI or interest
- Longer tenure lowers the EMI but raises total interest.
- Extra or lump-sum prepayments cut the principal early, when most of each EMI is interest, saving far more than the same payment near the end. Try the extra payment box.
- A bigger down payment or a lower rate reduces both.
This calculator assumes a fixed rate, monthly compounding and equal installments (reducing-balance method). Variable-rate (KIBOR-linked) loans reset periodically, and processing fees, insurance and taxes are extra, so confirm figures with your lender.
Frequently asked questions
What is an EMI?
An equated monthly installment (EMI) is the fixed amount you pay every month to repay a loan. Each EMI covers that month’s interest, and the rest reduces the principal.
How is EMI calculated?
EMI = P × r × (1 + r)ⁿ / ((1 + r)ⁿ − 1), where P is the loan amount, r the monthly interest rate and n the number of months. Enter the three values and the calculator applies it for you.
Why is most of my early EMI interest?
Interest is charged on the outstanding balance, which is highest at the start. As the balance falls, the interest part shrinks and the principal part grows. The amortization schedule shows this month by month.
How much can I save by prepaying?
Enter an extra monthly payment to see how many months earlier you finish and how much interest you save. Check whether your bank charges a prepayment penalty first.
Does it work for car, home and personal loans?
Yes. Any fixed-rate loan repaid in equal monthly installments on a reducing balance works, including car financing, home loans, personal loans and student loans.
Related tools
Free educational tool by HawkInc. Results are calculated in your browser and rounded for display; check critical work by hand or with a second method.