How to use the Loan EMI Calculator
- Enter the loan amount, the yearly interest rate and the term.
- Choose whether the term is in years or months.
- Read the monthly payment, total interest and total cost, then scroll the yearly schedule.
How the EMI is calculated
For a fixed-rate loan repaid in equal monthly instalments, EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1), where P is the loan amount, r is the monthly rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly payments. If the rate is 0%, the payment is simply P ÷ n.
Worked example
A loan of 250,000 at 6.5% a year over 25 years (300 payments) has a monthly payment of about 1,688.02. Over the full term you would pay roughly 506,405.37, of which 256,405.37 is interest.
Ways to reduce total interest
- Choose a shorter term: payments rise, but total interest drops sharply.
- Make a larger down payment so you borrow less.
- Check whether your lender allows extra repayments without a penalty.
- Compare the annual percentage rate (APR) of several offers, not just the headline rate.
What this calculator does not include
It assumes a fixed rate, equal monthly payments and no fees. Real loans may add processing fees, insurance, taxes or a variable rate, so treat the result as an estimate and confirm exact figures with your lender.
Frequently asked questions
What does EMI stand for?
EMI stands for equated monthly instalment: the fixed amount you pay each month, made up of interest and principal.
Can I use this for a mortgage, car loan or personal loan?
Yes, for any fixed-rate loan repaid in equal monthly payments. Enter the amount, yearly rate and term.
Why is more of my early payment interest?
Interest is charged on the outstanding balance. Early on the balance is highest, so interest takes a larger share of each payment, and the principal share grows over time.
Does this work in any currency?
Yes. It does not use a currency symbol, so the results are in the same currency as the amount you enter.
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Last updated: November 6, 2026