An EMI calculator computes your Equated Monthly Installment — the fixed amount you pay your lender every month until a loan is fully repaid. Enter the loan amount, the annual interest rate, and the tenure, and it shows your exact monthly payment along with the total interest you will pay over the life of the loan.
This free online tool is for anyone taking or comparing a personal loan, car loan, home loan, or education loan: borrowers checking affordability before they apply, and shoppers comparing two offers with different rates or tenures. Because the installment is equated, the payment never changes month to month — what changes is the split inside it. Early payments are mostly interest; later payments are mostly principal. The calculator shows that breakdown, the total amount payable, and the total interest cost, so you can see the true price of borrowing before you sign. A longer tenure lowers the monthly EMI but raises total interest, and the tool makes that trade-off concrete in one glance. Calculations run instantly in your browser with no sign-up and no data stored.
Worked example
Inputs: loan amount $100,000, annual rate 6%, tenure 5 years.
- Monthly rate: r = 0.06 ÷ 12 = 0.005
- Installments: n = 5 × 12 = 60
- (1 + r)^n = (1.005)^60 ≈ 1.34885
EMI = 100,000 × 0.005 × 1.34885 ÷ (1.34885 − 1)
EMI = 100,000 × 0.00674425 ÷ 0.34885 ≈ $1,933.28 per month
Total payable: 1,933.28 × 60 = $115,996.81
Total interest: 115,996.81 − 100,000 = $15,996.81
So a $100,000 loan at 6% for 5 years costs $15,996.81 in interest — about 16% of the amount borrowed.
How to use it
- Enter the Loan amount — the principal you plan to borrow.
- Enter the Annual rate — the yearly interest rate as a percent.
- Enter the Tenure — the repayment period (in months or years, per the tool's selector).
- Read your result: the monthly EMI, total interest payable, and total amount payable.
The formula behind it
Frequently asked questions
What is EMI in a loan?
EMI stands for Equated Monthly Installment: a fixed monthly payment that repays both principal and interest over the loan tenure. Equated means the amount stays the same every month, even though the interest portion decreases and the principal portion increases as the outstanding balance falls.
How is EMI calculated — flat rate or reducing balance?
Banks calculate EMI on a reducing-balance basis using EMI = P × r × (1 + r)^n / ((1 + r)^n − 1), charging interest only on the outstanding principal each month. A flat-rate quote looks cheaper because it charges interest on the original principal for the whole tenure — always convert flat rates to reducing-balance before comparing offers.
Does a longer tenure always mean a lower EMI?
Yes, stretching the tenure lowers the monthly EMI because the principal is spread over more payments — but it raises the total interest significantly. On a $100,000 loan at 6%, extending tenure from 5 to 10 years drops the EMI from $1,933.28 to about $1,110.21 while total interest roughly doubles from $15,996.81 to about $33,224.60.
Will making a prepayment reduce my EMI or my tenure?
That depends on your lender's policy: most lenders keep the EMI unchanged and shorten the tenure, which cuts total interest the most. Some allow you to keep the tenure and reduce the EMI instead. Either way, prepaying principal early saves more interest than prepaying late, because early payments carry the largest interest component.
Can my EMI change after the loan starts?
With a fixed-rate loan, no — the EMI is locked for the full tenure. With a floating-rate loan, the lender usually keeps the EMI constant and adjusts the tenure when rates move, extending it when rates rise. If rates rise sharply, the lender may instead raise the EMI; check your loan agreement for which applies.