Loan & EMI Calculator
About the EMI Calculator
Calculate the Equated Monthly Instalment (EMI) for any loan — personal, car, education, or business — from the principal, interest rate, and tenure. You also get the total interest payable and the overall cost of the loan. Seeing the interest total next to the EMI often changes decisions: a longer tenure lowers the monthly payment but can dramatically increase what you pay overall.
This tool works in your browser: the files and text you use are processed on your device and are not uploaded.
How to use it
- Enter the loan amount (principal).
- Set the annual interest rate quoted by your lender.
- Choose the tenure in months or years to see your EMI and total interest.
Frequently asked questions
How is EMI calculated?
EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), where P is the principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the number of monthly instalments. This is the standard reducing-balance formula used by banks.
Should I choose a shorter or longer tenure?
A shorter tenure means a higher EMI but far less total interest. A longer tenure eases monthly cash flow at the cost of more interest. A common approach is to pick the shortest tenure whose EMI stays under about 40% of your monthly income.
What is the difference between flat rate and reducing balance?
A flat rate charges interest on the full original principal for the whole tenure, while reducing balance charges interest only on the outstanding amount. A 10% flat rate can cost about the same as an 18% reducing-balance rate — this calculator uses the reducing-balance method.
Do prepayments change my EMI?
Prepaying reduces the outstanding principal. Lenders then either lower your EMI or shorten your tenure — shortening the tenure saves more interest. Check whether your lender charges prepayment penalties.
This calculator is for informational and educational purposes only and does not constitute financial advice. Verify important figures with your bank, lender, or a qualified financial advisor.