Loan EMI Calculator

Calculate your monthly loan EMI payments

Quick answer

Loan EMI Calculator

P = Principal amount, r = monthly interest rate, n = number of months. EMI is the fixed monthly payment including principal and interest.

Formula

EMI = [P × r × (1 + r)^n] / [(1 + r)^n - 1]

🏦 Loan Details

💵 EMI Details

🏦Formula

EMI = [P × r × (1 + r)^n] / [(1 + r)^n - 1]

💡How it works

P = Principal amount, r = monthly interest rate, n = number of months. EMI is the fixed monthly payment including principal and interest.

ℹ️ What is Loan Calculator?

A loan calculator determines your monthly repayment amount (EMI), total interest paid, and total amount repaid over the life of a loan. It works for personal loans, car loans, student loans, and any fixed-rate installment loan.

📐 Formula

EMI = P × r × (1 + r)ⁿ / ((1 + r)ⁿ − 1)
P— Principal — the original loan amount
r— Monthly interest rate = Annual rate / 12 / 100
n— Total number of monthly payments (months)
EMI— Equated Monthly Installment

✏️ Worked Example

Loan Amount: ₹5,00,000
Annual Interest: 10%
Tenure: 5 years (60 months)
  1. 1Monthly rate r = 10 / 12 / 100 = 0.00833
  2. 2n = 60 months
  3. 3EMI = 5,00,000 × 0.00833 × (1.00833)⁶⁰ / ((1.00833)⁶⁰ − 1)
  4. 4EMI = 5,00,000 × 0.00833 × 1.6453 / 0.6453 ≈ ₹10,624
  5. 5Total payment = ₹10,624 × 60 = ₹6,37,440
  6. 6Total interest = ₹6,37,440 − ₹5,00,000 = ₹1,37,440
✅ Result: EMI = ₹10,624 | Total Interest = ₹1,37,440

💡 How to Interpret Results

  • ▸A lower EMI looks attractive but means more interest paid overall — check the total repayment amount.
  • ▸The debt-to-income (DTI) ratio should be ≤ 36%; your EMI should not exceed this of your monthly income.
  • ▸Extra payments reduce principal directly and can cut months off your loan.
  • ▸Comparing loans: use the Total Interest Paid figure, not just the monthly EMI.
  • ▸Secured loans (car, home) typically have lower rates than unsecured personal loans.

❓ Frequently Asked Questions

Related tools for Finance decisions

Continue the calculation

Mortgage Affordability CalculatorReverse-calculate a home budget from a monthly payment.Savings CalculatorProject deposits and compound growth.ROI CalculatorCompare investment return.

📚 Related Articles & Tips

💰

How to Calculate Loan EMI (Complete Beginner Guide)

Learn how to calculate monthly loan payments (EMI) with simple formulas, real examples, and practical tips for loans.

10 min read•finance-guides
💰

Compound Interest Explained: The 8th Wonder of the World

Discover how compound interest can work for or against you in investments, loans, and savings.

6 min read•formula-explainers
RE

Cap Rate vs Cash-on-Cash Return

Cap rate and cash-on-cash return answer different questions. Learn how to use both on a rental property deal.

9 min read•finance-guides
PV

Solar Panel Payback Period Explained

Work through solar payback with net cost, bill offset, incentives, net metering assumptions, and 25-year ROI.

9 min read•finance-guides

Embed This Calculator

Add this calculator to your website for free

<iframe src="https://calcitools.com/calculators/loan/embed" width="100%" height="600" frameborder="0" scrolling="auto" title="Loan Calculator"></iframe>

Why Embed?

  • ✓ Free to use on your website
  • ✓ Always up-to-date with latest features
  • ✓ Mobile responsive design
  • ✓ No maintenance required
  • ✓ Fast loading and secure