EMI / Loan Calculator

Before signing a loan agreement, knowing the actual monthly payment amount matters more than the headline loan amount or interest rate alone. This calculator works out the Equated Monthly Installment (EMI) — the fixed amount you'd pay each month for a loan, based on the amount borrowed, interest rate, and repayment period.

How the EMI formula works

EMI is calculated using the standard reducing-balance formula, which accounts for interest compounding monthly on the remaining loan balance: EMI = P × r × (1+r)^n / ((1+r)^n - 1), where P is the loan amount, r is the monthly interest rate (annual rate divided by 12 and by 100), and n is the number of monthly installments. This is the same formula banks and lenders use for standard reducing-balance loans.

Why total interest matters as much as the EMI amount

Two loans with the same EMI can have very different total costs depending on the tenure — a longer tenure lowers the monthly payment but increases the total interest paid over the life of the loan, sometimes substantially. This calculator shows both figures side by side, so you can compare, for example, a 36-month versus 60-month tenure on the same loan amount and see the real cost difference.

Frequently Asked Questions

Does this include processing fees or other loan charges? No — this calculates the pure principal-and-interest EMI based on the standard formula; separate fees like processing charges, insurance, or prepayment penalties that a specific lender may add aren't included and should be checked with the loan provider directly.

Does it work for both personal loans and mortgages? Yes — the reducing-balance EMI formula applies the same way regardless of loan type, as long as you have the loan amount, annual interest rate, and tenure in months.

Is my financial information saved anywhere? No — the calculation happens entirely in your browser using JavaScript; nothing is stored or transmitted.