Calculate the monthly instalment on a loan. Enter the amount, the yearly interest rate and the period. You get the EMI, the total interest and the total you will repay.
Standard reducing balance formula. Banks may add processing fees, insurance or a different rounding, so your actual instalment can differ slightly.
Formulas and assumptions
- EMI: P times r times (1 + r) to the power n, divided by ((1 + r) to the power n minus 1)
- P: loan amount. r: monthly rate, which is the yearly rate divided by 12 and by 100. n: number of months
- Total interest: EMI times n, minus P
- Zero interest: EMI is simply the amount divided by the months
Example
A loan of 1,000,000 at 12 percent a year for 5 years has an EMI of 22,244.45. You repay 1,334,666.86 in total, of which 334,666.86 is interest.
Frequently asked questions
What is an EMI?
Equated monthly instalment is the fixed amount you pay each month to clear a loan. Early payments are mostly interest and later ones are mostly principal.
How can I reduce the interest I pay?
Choose a shorter period, make a larger down payment or prepay when you can. A shorter loan has a higher EMI but much less total interest.
Is the calculator valid for car, home and personal loans?
Yes, for any loan with a fixed rate and equal monthly payments. Fees and floating rates will change the real figures.
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