About the Loan & EMI Calculator
Work out your Equated Monthly Instalment for any loan. Drag the sliders to see how the rate and tenure change your EMI and the total interest you pay.
How to use
- Enter the loan amount, annual interest rate and tenure.
- The chart splits total payment into principal and interest.
Formula
EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1), where r = annual rate ÷ 12 ÷ 100 and n = months
Frequently asked questions
How is the monthly loan payment (EMI) calculated?
EMI = P × r × (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 payments.
Does a longer loan term lower my payment?
Yes, the monthly payment falls, but you pay much more interest in total. Compare the total interest for two or three terms before choosing.
Why is most of my early payment interest?
Interest is charged on the outstanding balance, which is highest at the start. As the balance falls, more of each payment goes to principal, so prepaying early saves the most.