Find out what a loan really costs before you sign. Enter the amount you want to borrow, the yearly interest rate and the length of the loan, and this calculator shows the fixed monthly instalment (EMI), the total interest and the total you repay.
The monthly instalment (EMI) on a fixed-rate loan is P × r × (1+r)n ÷ ((1+r)n − 1), where P is the amount borrowed, r the monthly rate and n the number of months. A 100,000 loan at 10% a year over 5 years costs about 2,124.70 a month.
Enter your numbers and press Calculate.
For information only. Results are estimates based on the numbers you enter and are not financial advice. Lenders and banks may round, charge fees or calculate interest differently.
How to use the Loan EMI calculator
- Type the amount you want to borrow (any currency; the result uses the same currency).
- Enter the yearly interest rate the lender quotes, for example 10 for 10%.
- Enter the term in years, and add extra months if the term is not a whole number of years.
- Press Calculate. Press Reset to clear the form.
The formula
This is the standard amortising-loan formula: every instalment is the same, the early ones are mostly interest, and the later ones are mostly principal. If the rate is 0%, the EMI is simply P ÷ n.
Worked example
Borrow 100,000 at 10% a year for 5 years. r = 10 ÷ 12 ÷ 100 = 0.008333 and n = 60. (1 + r)60 ≈ 1.6453, so EMI = 100,000 × 0.008333 × 1.6453 ÷ 0.6453 ≈ 2,124.70. Over 60 months you repay about 127,482, so the interest is about 27,482.
FAQ
What does EMI stand for?
EMI means equated monthly instalment: a fixed payment that covers both interest and part of the principal each month until the loan is paid off.
Does this work for car loans and personal loans?
Yes. Any fixed-rate loan repaid in equal monthly instalments uses the same formula. Fees, insurance and flat-rate quotes are not included.
What is the difference between a flat rate and a reducing rate?
A reducing (declining-balance) rate charges interest only on what you still owe, which is what this calculator uses. A flat rate charges interest on the original amount for the whole term, so the same headline rate costs more.
How can I lower my EMI?
A longer term or a lower rate lowers the monthly payment, but a longer term usually raises the total interest you pay.
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