An equated monthly instalment is the fixed payment that clears a loan, interest included, over its term. Enter the amount, the annual interest rate and the term in years and months to get the EMI, the total interest you will pay and a month-by-month schedule showing how each payment splits between interest and principal. Add an extra monthly payment to see how much sooner the loan ends and how much interest that saves. The calculator works for personal, business, car and home loans in rupees or any other currency.
Loan and EMI Calculator
A fixed-rate loan is repaid in equal monthly instalments, called EMIs in many markets. Each payment covers that month's interest first and puts the remainder toward the balance, so early payments are mostly interest and late payments are mostly principal. The loan calculator shows the monthly payment, the total interest over the life of the loan, the payoff date and a year-by-year schedule; switch to the monthly view to see every payment.
Borrowing $25,000 over five years at 7.5% costs about $501 a month and roughly $5,057 in interest. Add an extra $100 a month and the calculator recomputes the schedule: the loan is paid off about eleven months sooner and the interest bill falls by around $1,000. The figures assume monthly compounding and no fees; your lender's quote may differ slightly because of rounding, fees or a different day-count convention.
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Frequently Asked Questions
What is the EMI formula?
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r the monthly interest rate (annual rate ÷ 12 ÷ 100) and n the number of months.
Why is most of my early EMI interest?
Interest is charged on the outstanding balance, which is largest at the start. As the balance falls the interest share of each fixed payment shrinks and the principal share grows; the schedule shows the crossover.
Is it worth paying extra each month?
Usually yes if the loan rate is higher than what the money would earn elsewhere. Even a small extra payment applied to the principal shortens the term noticeably; enter one to see the exact effect on the payoff date and total interest.
