EMI
Calculator
Work out your monthly loan instalment, the total interest you'll pay and the total cost of the loan from principal, rate and tenure.
Your loan
Your EMI
Assumes a fixed rate and equal monthly instalments.
How EMI is calculated
EMI (Equated Monthly Instalment) is a fixed monthly payment that covers both interest and principal so the loan is fully repaid by the end of the tenure. The formula is:
- EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1)
- P = principal · r = monthly rate = annual rate ÷ 12 ÷ 100 · n = months = years × 12.
- Total payment = EMI × n · Total interest = total payment − P.
Worked example: borrow ₹10,00,000 at 9% per year for 20 years. The monthly rate r = 9 ÷ 12 ÷ 100 = 0.0075 and n = 20 × 12 = 240. Plugging in gives an EMI of about ₹8,997. Over 240 months that's a total payment of roughly ₹21,59,344, of which ₹11,59,344 is interest. A longer tenure lowers the EMI but raises the total interest, and a higher rate raises both.
FAQ
How is EMI calculated?
EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1), where P is the principal, r is the monthly rate (annual ÷ 12 ÷ 100) and n is the number of months (years × 12).
What is the total interest on a loan?
It's the EMI multiplied by the number of instalments, minus the principal — the extra you pay the lender over the life of the loan.
Does a longer tenure reduce EMI?
Yes. Spreading the principal over more months lowers each EMI, but you pay more total interest because the balance stays outstanding for longer.
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