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EMI Calculator

Turn a loan amount, an interest rate and a tenure into the equated monthly instalment.

Inputs
EMI breakdown120 monthly payments
Monthly EMI12,667.58
Formula
EMIP x r x (1 + r)^n / ((1 + r)^n - 1)
Ploan amount, r = monthly rate, n = months
Inputs
Loan amount (P)1,000,000.00
Annual rate9.00%
Monthly rate (r)0.007500
Months (n)120
Result
Monthly EMI12,667.58
Total repayment1,520,109.29
Total interest520,109.29
Interest as share of repayment34.22%
Interest per unit borrowed0.520
First instalment split
Interest part7,500.00
Principal part5,167.58
Balance after payment 1994,832.42
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About the EMI Calculator

An equated monthly instalment keeps the payment flat while the mix inside it shifts. Early payments are mostly interest because the outstanding balance is large. Later ones are mostly principal. The standard reducing balance formula is EMI = P x r x (1 + r)^n / ((1 + r)^n - 1), with P as the amount borrowed, r as the annual rate divided by 1200 and n as the number of months.

This page prints that formula with your figures substituted, so a spreadsheet or a lender statement can be checked line by line. Below the instalment you get the total repayment, the total interest and the interest share of everything you hand over. The split of the very first payment is shown separately, which is the quickest way to see how front loaded a long tenure really is.

Two habits make loans cheaper. Shortening the tenure raises the instalment a little and cuts the interest a lot, so it is worth trying twelve months less and comparing. Paying a lump sum against the principal early has far more effect than the same sum paid near the end. Note that lenders may add a processing fee, insurance or GST on the fee, none of which appear in the raw formula. The Personal Loan Calculator folds a fee into the cost, and the Home Loan Calculator adds a down payment and monthly escrow.

How to use

  1. Type the loan amount the bank will actually disburse.
  2. Enter the annual interest rate from the sanction letter, not the monthly rate.
  3. Choose a tenure and switch the unit between years and months to match the offer.
  4. Read the instalment, then compare a shorter tenure to see how much interest disappears.

Common questions

Is the interest rate monthly or yearly?
Enter the yearly rate. The calculator divides it by twelve internally to get the monthly rate used in the formula.
Does this handle a floating rate loan?
It prices the rate you enter as if it stayed fixed. When a floating rate moves, run the figure again with the new rate and the months still left.
Why does my bank statement differ by a few units?
Lenders round instalments and may count days rather than whole months for the first period, so a small gap is normal.
What happens if I enter a zero rate?
The calculator falls back to a simple division of the amount by the number of months, which is what an interest free instalment plan does.