What Is EMI?
EMI stands for Equated Monthly Instalment — the fixed amount you pay each month to repay a loan. Each EMI payment consists of two parts: principal repayment and interest. In the early years, a larger portion goes towards interest; over time, more goes towards the principal.
EMI Formula
The standard 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 ÷ 12), and n is the total number of monthly payments.
How to Use This Calculator
Enter your loan amount in any currency, the annual interest rate offered by your lender, and the loan tenure in years or months. The calculator instantly shows your monthly EMI, total interest cost, and a year-by-year amortisation breakdown so you can see how your balance decreases over time.
Tips for Reducing Your Loan Cost
- Make extra payments — even one additional EMI per year can shorten your loan by years.
- Choose a shorter tenure — higher EMIs but dramatically less total interest.
- Refinance when rates drop — switching to a lower-rate lender saves money long-term.
- Compare lenders — a 0.25% rate difference on a large loan adds up to thousands in savings.