How to calculate your EMI
- Enter the loan amount.
- Enter the yearly interest rate.
- Enter the term in years or months.
- See your monthly payment (EMI), the total interest, the total you'll repay and a year-by-year schedule.
The EMI formula
EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)
- P is the loan amount.
- r is the monthly interest rate: the yearly rate ÷ 12 ÷ 100.
- n is the number of monthly payments.
For a loan of 500,000 at 12% a year over 5 years, the EMI is about 11,122, and you'd pay about 167,333 in interest in total.
How each payment is split
Every EMI is the same amount, but what it pays for changes over time:
| Early payments | Later payments |
|---|---|
| Mostly interest | Mostly principal |
| Balance falls slowly | Balance falls quickly |
That's because interest is charged on the remaining balance, which is highest at the start. The schedule table shows how much principal and interest you pay each year.
Ways to pay less interest
- Shorter term. A higher EMI over fewer years cuts total interest sharply.
- Lower rate. Even 1% less makes a big difference on a long loan. Compare lenders, and check whether the rate is fixed or floating.
- Prepayments. Paying extra towards the principal early reduces interest on every later month. Check whether your lender charges prepayment fees.
What this calculator doesn't include
It assumes a standard reducing-balance loan with a fixed rate. It doesn't include processing fees, insurance, taxes or penalties, and flat-rate loans, where interest is charged on the original amount for the whole term, cost more than the EMI shown here. Always compare with the lender's official quote and the total cost of borrowing.
Related tools
To see how savings grow instead, use the compound interest calculator. All calculations run in your browser.