Loan EMI Calculator
Calculate the monthly EMI, total interest and total payment on a home, car or personal loan.
- Total interest
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- Total payment
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- Monthly EMI
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An estimate only. Your lender's offer may include processing fees or insurance, and may use a different calculation.
How EMI is calculated
EMI stands for equated monthly instalment. Banks use this standard formula:
EMI = P x r x (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 instalments.
Example
A loan of Rs 10,00,000 at 9% a year for 20 years has an EMI of about Rs 8,997. Over 240 months you pay about Rs 21.6 lakh, so the interest is about Rs 11.6 lakh, more than the loan itself.
Why a longer loan costs more
A longer period lowers the monthly EMI, but you pay interest for more months. Try this calculator with 15 and 20 years to see the difference in total interest. In the early years, most of each EMI goes to interest. That is why making part-prepayments early can save a lot, if your lender allows them. Ask about any prepayment charges first.