EMI Calculator
Work out your Equated Monthly Installment (EMI) for any loan, plus total interest and payment schedule.
About the EMI Calculator
EMI, or Equated Monthly Installment, is the fixed monthly amount a borrower pays to clear a loan over an agreed number of months — a term used widely for consumer, auto, and personal loans across many countries. This calculator computes your EMI directly from the loan amount, annual interest rate, and term in months, along with total interest and a payment breakdown.
How It Works
The calculator applies the standard EMI formula, which is the same reducing-balance amortization math used by banks worldwide: it turns your annual rate into a monthly rate, then finds the constant monthly payment that will exactly retire the loan across the number of months you specify. Every EMI you pay is split between interest on the remaining balance and principal reduction.
EMI = P × r × (1+r)^n / [(1+r)^n − 1], where P is principal, r is the monthly interest rate, and n is the number of months.
Worked example
Scenario: A ₹/$15,000 loan at 9.5% annual interest over 60 months.
- Monthly rate r = 9.5% ÷ 12 = 0.7917%; n = 60 months.
- EMI = P × r × (1 + r)^n ÷ [(1 + r)^n − 1] = 15,000 × 0.007917 × 1.6058 ÷ 0.6058 = 315.03.
- Month 1: interest 15,000 × 0.7917% = 118.75, principal 196.28.
- Total payment 315.03 × 60 ≈ 18,902, so total interest ≈ 3,902.
Result: An EMI of 315.03 per month and about 3,902 in total interest over 5 years (in whichever currency you choose).
Understanding EMI
EMI spreads principal and interest into regular installments for a fixed-rate loan. The result depends on the loan amount, rate, and tenure. A longer tenure usually lowers the installment but can increase total interest, so compare both payment affordability and total cost.
Tips and common mistakes
- Banks in India and elsewhere often quote a reducing-balance rate — that is what this calculator expects. A flat rate quoted on the original amount is much more expensive.
- Processing fees and GST on fees are not included; add them separately when comparing offers.
- Prepaying part of the principal usually lets you choose between a lower EMI or a shorter tenure; the shorter tenure saves more interest.
Assumptions & Limitations
- Interest is calculated on the reducing balance and compounds monthly, matching typical EMI-based lending.
- The EMI amount is assumed constant for the entire term.
- Processing fees, insurance add-ons, and prepayment charges are not included.
- Some lenders apply a different day-count convention that can shift the EMI slightly from this estimate.
Sources and review
Method: Standard fixed-rate amortization (level-payment annuity) formula with monthly compounding, the method used for installment loans and mortgages. EMI is the same level payment on a reducing balance.
Sources:
- Reserve Bank of India guidance on equated monthly installments and reducing-balance interest.
- Consumer Financial Protection Bureau (CFPB) consumer guidance on loan payments, interest and amortization.
Last reviewed: October 2026 by Faheem Ali, founder of CalculatorAnything. The method and examples are provided for transparency; results remain estimates and may contain errors.
Results are estimates for planning and comparison, not financial advice or a lender's quote. Rates, fees, tax rules and regulations vary by country and change over time; confirm figures with your lender or a licensed adviser. Spotted an error? Tell us — see our editorial policy for how corrections are handled.