Calculate your Equated Monthly Installment (EMI) for a loan based on principal, interest rate and tenure.
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The EMI formula (Equated Monthly Installment formula) is: EMI = P × r × (1+r)^n / ((1+r)^n − 1), where P is the loan principal, r is the monthly interest rate (annual rate divided by 12, then by 100), and n is the number of monthly installments.
This loan EMI formula produces a single fixed monthly payment that, when paid every month for n months, exactly pays off both the principal and all accumulated interest by the final payment, whether it's a home loan, car loan, or personal loan EMI.
For a loan of 500,000 at 8.5% annual interest over 60 months: the monthly interest rate is 8.5 ÷ 12 ÷ 100 = 0.007083. Plugging this into the EMI formula gives a fixed monthly EMI of 10,258.27, with total interest of 115,495.88 paid over the full 60 months, about 23% of the original loan amount. The exact month-by-month breakdown of how much goes to principal versus interest is shown in the loan amortization schedule below.
Entering a monthly interest rate instead of the annual rate, this calculator expects the annual rate and converts it to monthly internally, entering an already-monthly rate overstates the EMI significantly.
Choosing a longer tenure purely because it lowers the EMI, without checking total interest, as the worked example shows, interest can still add up to nearly a quarter of the loan amount even over a modest 5-year term.
Forgetting that EMI covers principal and interest only, processing fees, insurance premiums or other loan charges some lenders add aren't part of this calculation.
EMI is calculated using the loan amount, interest rate and tenure via the standard reducing-balance formula, which spreads principal and interest across equal monthly payments.
Yes, a longer tenure generally reduces the monthly EMI amount, but increases the total interest paid over the life of the loan.
Enter the annual interest rate. The calculator automatically converts it to a monthly rate internally.
An amortization schedule shows how each payment splits between principal and interest over the life of the loan, and how your remaining balance decreases over time.
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