Calculate your monthly loan instalment (EMI), total interest payable, and total repayment amount for any loan — home, car, personal, or business.
Enter the yearly interest rate from your lender
Monthly EMI
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Principal amount--
Total interest payable--
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Principal vs Interest Breakdown
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What is EMI and How is it Calculated?
EMI (Equated Monthly Instalment) is the fixed monthly payment you make to a lender to repay a loan over a set period. Every EMI consists of two components — the principal repayment and the interest charge. In the early months, most of your EMI goes toward interest. As the loan matures, a greater share goes toward repaying the principal.
EMI Formula
EMI is calculated using this 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 ÷ 12 ÷ 100), and n is the total number of monthly instalments.
How to Reduce Your EMI
There are three ways to lower your EMI: borrow less (make a larger down payment), get a lower interest rate (shop around or improve your credit score), or extend the loan tenure. However, a longer tenure means paying more total interest overall. Use this calculator to compare different scenarios before taking a loan.
Types of Loans This Calculator Applies To
This calculator works for home loans, car loans, personal loans, business loans, student loans, and any other fixed-rate reducing balance loan. It supports multiple currencies including USD, GBP, EUR, CAD, AUD, INR, and BDT.
Frequently Asked Questions
EMI stands for Equated Monthly Instalment — the fixed amount you pay to a lender every month to repay a loan. Each payment includes both principal repayment and interest.
EMI = P × r × (1+r)ⁿ / ((1+r)ⁿ - 1), where P = principal, r = monthly interest rate, n = number of months. This calculator uses the standard reducing balance method used by most banks.
You can reduce your EMI by borrowing less, getting a lower interest rate, or extending the tenure. Note that a longer tenure reduces EMI but increases total interest paid.
With flat rate, interest is charged on the full original principal throughout. With reducing balance (used by most banks), interest is charged only on the outstanding principal — so it decreases every month as you repay. This calculator uses the reducing balance method.
Missing an EMI typically results in a late payment penalty and a negative impact on your credit score. Repeated missed payments can lead to legal action by the lender. Always contact your lender early if you anticipate difficulty making payments.