Enter the loan amount, annual interest rate, and loan tenure in years or months. The calculator instantly shows your Equated Monthly Installment (EMI), total interest payable, and total amount paid over the life of the loan.

The visual breakdown chart shows the split between principal and interest, making it easy to see the true cost of borrowing. Adjust the sliders to explore how changing the loan amount, rate, or tenure affects your monthly obligation.

An Equated Monthly Installment (EMI) is a fixed payment amount made by a borrower to a lender at a specified date each month. EMIs apply to both the interest and principal, and over the loan term the entire balance is paid off in full.

The EMI Formula

EMI is calculated using the formula: EMI = P × r × (1 + r)^n / ((1 + r)^n – 1), where P is the principal loan amount, r is the monthly interest rate (annual rate divided by 12), and n is the total number of monthly payments. This formula ensures each payment is identical, which simplifies budgeting.

Interest vs. Principal Over Time

In the early months of a loan, a larger portion of each EMI goes toward interest because the outstanding balance is high. As you continue making payments, the principal portion grows while the interest portion shrinks. This is why prepaying early in a loan's life has the greatest impact on total interest savings.

Factors That Affect Your EMI

Loan amount: A higher principal means higher EMIs. Interest rate: Even a 0.5% rate difference can add up to thousands of dollars over a long tenure. Loan tenure: Extending the tenure lowers your monthly EMI but increases total interest paid — sometimes dramatically. For example, a $50,000 loan at 8% costs $9,200 in interest over 5 years, but $23,800 over 10 years.