Loan & EMI Calculator
Work out your monthly installment, total interest and full repayment schedule for a personal, car or home loan, and see how much an extra monthly payment saves.
- Principal (amount borrowed)0
- Total interest0
- Total amount you repay0
Repayment schedule
| Year | Payment | Principal | Interest | Balance |
|---|
Assumes a fixed interest rate with interest charged monthly on the remaining balance (reducing balance method), which is how most personal, car and home loans work. Fees, insurance and taxes are not included.
How EMI is calculated
EMI (equated monthly installment) is the fixed amount you pay every month until a loan is cleared. Banks and lenders use this formula:
EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1)
- P is the amount you borrow.
- r is the monthly interest rate: the yearly rate ÷ 12 ÷ 100.
- n is the number of monthly payments.
Example: borrowing 1,000,000 at 12% a year for 5 years gives r = 0.01 and n = 60, so the EMI is about 22,244 a month. Across 60 payments you repay roughly 1,334,667, which means the loan costs about 334,667 in interest.
Why early payments are mostly interest
Interest is charged each month on the balance you still owe. At the start that balance is at its highest, so most of each EMI goes to interest and only a small part reduces the loan. As the balance falls, the interest share shrinks and more of every payment goes to the principal. Switch the schedule above between Yearly and Monthly to see this shift.
How extra payments help
Anything you pay on top of the EMI goes straight to the principal. That lowers the balance interest is charged on for every remaining month, which is why even a small extra payment can take years off a loan. In the example above, paying 5,000 extra each month clears the loan 14 months early and saves about 82,000 in interest. Check with your lender first, because some charge a fee for paying early.
Flat rate vs reducing balance
Some lenders quote a flat rate, where interest is worked out on the original loan amount for the whole term. A flat rate looks cheaper than it is: 10% flat over five years costs about the same as 17.3% on a reducing balance. This calculator uses the reducing balance method. If a lender quotes a flat rate, ask for the annual percentage rate (APR) so you can compare offers fairly.
Term length changes the total cost
| Loan of 25,000 at 10% | Monthly payment | Total interest |
|---|---|---|
| 3 years | 806.68 | 4,040 |
| 5 years | 531.18 | 6,871 |
| 7 years | 415.03 | 9,862 |
A longer term lowers the monthly payment but increases the total interest you pay. Pick the shortest term whose payment fits comfortably in your budget.
Loan & EMI Calculator FAQs
Answers about installments, interest and early repayment.
What is the difference between EMI and the interest rate?+
The interest rate is the yearly cost of borrowing, shown as a percentage. The EMI is the fixed monthly payment that covers that month’s interest plus part of the amount you borrowed.
Does a longer loan term reduce my EMI?+
Yes, but you pay more interest in total. A 25,000 loan at 10% costs 806.68 a month over 3 years with 4,040 in interest, or 415.03 a month over 7 years with 9,862 in interest.
Can I use this for car, personal and home loans?+
Yes. It works for any fixed-rate loan repaid in equal monthly installments. For a home loan that also includes property tax, insurance and PMI, use our Mortgage Calculator.
Is my information saved?+
No. Everything is calculated in your browser. Nothing you type is sent or stored. The only thing remembered on your device is your currency choice.
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