Loan EMI Calculator
Estimate monthly loan payments.
Loan details
More options: pay extra each month
Paying a little more than your EMI cuts the interest and finishes the loan sooner.
Your result
₹2,051.65
Monthly EMI for 5 years at 8.50% a year
Principal (81%)
₹1,00,000
Interest (19%)
₹23,099
- Loan amount
- ₹1,00,000
- Total interest
- ₹23,099
- Total payment
- ₹1,23,099
- Number of payments
- 60
- Interest on every 100 borrowed
- ₹23.10
- First EMI: interest part
- ₹708.33
- First EMI: principal part
- ₹1,343.32
Estimate only. Your lender may round differently or add processing fees and rate changes.
Includes charts, the full repayment schedule and a link back to this calculator.
Repayment schedule
Tap or hover a bar to see that year
- Principal
- Interest
Year 1
- You pay
- ₹24,620
- Towards principal
- ₹16,763
- Towards interest
- ₹7,857
- Interest share
- 31.9%
- Balance left
- ₹83,237
- Loan repaid
- 16.8%
Full payment table
| Year | Principal | Interest | Total paid | Balance |
|---|---|---|---|---|
| 1 | ₹16,763 | ₹7,857 | ₹24,620 | ₹83,237 |
| 2 | ₹18,245 | ₹6,375 | ₹24,620 | ₹64,992 |
| 3 | ₹19,857 | ₹4,763 | ₹24,620 | ₹45,135 |
| 4 | ₹21,612 | ₹3,007 | ₹24,620 | ₹23,523 |
| 5 | ₹23,523 | ₹1,097 | ₹24,620 | ₹0 |
Loan EMI Calculator Math Formula
EMI stands for equated monthly instalment: one fixed payment you make every month until the loan is gone. Each payment covers that month's interest first, and whatever is left pays down the loan. Here is the formula the calculator uses, followed by a worked example with real numbers.
The EMI formula
EMI = P × r × (1 + r)n ÷ [(1 + r)n − 1]
- P = the amount you borrow (principal)
- r = monthly interest rate = yearly rate ÷ 12 ÷ 100
- n = number of monthly payments = years × 12
If the interest rate is 0%, there is nothing to divide by, and the EMI is simply P ÷ n.
Now let's work through it with one simple example: a loan of 100,000 at 8.5% a year for 5 years.
Step 1: Get the monthly rate and number of payments
r = 8.5 ÷ 12 ÷ 100 = 0.007083
n = 5 × 12 = 60 payments
Step 2: Work out the growth factor
(1 + r)n tells you how much one unit of debt would grow if you never paid anything.
(1 + 0.007083)60 = 1.5273
Step 3: Put it in the EMI formula
EMI = 100,000 × 0.007083 × 1.5273 ÷ (1.5273 − 1)
EMI = 2,051.65 a month
You pay 2,051.65 every month for 60 months.
Step 4: Total payment and total interest
Total payment = 2,051.65 × 60 = 123,099.19
Total interest = 123,099.19 − 100,000 = 23,099.19
That is about 23.1 of interest for every 100 you borrowed.
Step 5: See where your first payment goes
Interest part = 100,000 × 0.007083 = 708.33
Principal part = 2,051.65 − 708.33 = 1,343.32
The next month, interest is charged on the smaller balance that is left, so a little less goes to interest and a little more goes to the loan. This is why early payments are mostly interest and the last ones are mostly principal.
Step 6: A longer term lowers the EMI but costs more
Same 100,000 at 8.5%, different terms:
| Term | Monthly EMI | Total interest |
|---|---|---|
| 3 years | 3,156.75 | 13,643.13 |
| 5 years | 2,051.65 | 23,099.19 |
| 7 years | 1,583.65 | 33,026.48 |
A longer loan feels lighter every month, but you pay interest for more months, so the total cost goes up.
Step 7: What an extra payment does
If you add 1,000 to every EMI, the extra goes straight to the principal, so interest is charged on a smaller balance each month.
Loan ends in 38 months instead of 60
Interest saved = 8,907.68
That is 22 months sooner and 8,908 less interest, just from a small extra payment.
Online Loan EMI Calculator
Our free online loan EMI calculator works out your monthly loan payment in seconds. Enter the loan amount, the yearly interest rate and the term, and you instantly see your monthly EMI, the total interest you will pay, the total cost of the loan and how each payment splits between interest and principal. A repayment chart and a month-by-month schedule show how your balance falls to zero.
Use it for a home loan, mortgage, car loan, personal loan, student loan or business loan in any currency. It helps you check whether a monthly payment fits your budget before you apply, compare offers from different lenders, see how much a longer or shorter term really costs, and find out how much interest and time you save by paying a little extra each month. It runs in your browser, needs no sign-up and works on phones, tablets and desktops.
Features Of ToolVega Loan EMI Calculator
- Instant monthly EMI, total interest and total payment
- Set the term in years or months
- Easy sliders and typed inputs for amount, rate and term
- Pay-extra option shows interest and time saved
- Principal vs interest split and repayment chart
- Month-by-month and year-by-year payment schedule
- Works in many currencies, including INR, USD, GBP, EUR, CAD and AUD
- Download a PDF report and share your result
- Free, no sign-up, works on phone, tablet and desktop
- Private: calculated in your browser, nothing is stored
Frequently asked questions
What is an EMI and how is it calculated?
EMI (equated monthly instalment) is the fixed amount you pay every month until a loan is repaid. It is calculated with EMI = P × r × (1 + r)^n ÷ [(1 + r)^n − 1], where P is the loan amount, r is the monthly interest rate (yearly rate ÷ 12 ÷ 100) and n is the number of monthly payments. For example, a loan of 100,000 at 8.5% a year for 5 years has an EMI of 2,051.65.
Is a longer or a shorter loan term better?
A longer term gives a lower monthly EMI but you pay interest for more months, so the total cost is higher. A shorter term costs more each month but less overall. On 100,000 at 8.5%, 3 years means an EMI of 3,156.75 and 13,643 interest, while 7 years means 1,583.65 a month and 33,026 interest. Pick the shortest term your budget can comfortably handle.
How can I lower my EMI or pay less interest?
Borrow less by making a bigger down payment, compare lenders for a lower rate, or choose a longer term if you need a smaller monthly payment. To cut the total interest, pay extra towards the principal. Adding just 1,000 a month to the 100,000 example above ends the loan 22 months early and saves about 8,908 in interest. Use the pay-extra option in the calculator to test your own numbers, and check with your lender that there is no prepayment penalty.
Why does my bank quote a different EMI?
This calculator uses the reducing balance method, where interest is charged each month only on what you still owe. This is how most home, car and personal loans work. Some lenders quote a flat rate, where interest is charged on the full original amount for the whole term, which makes the real cost much higher than the same number on a reducing balance loan. Differences also come from processing fees, insurance, taxes, rounding and rate changes on floating-rate loans, so compare the annual percentage rate (APR) or the total amount repayable, not just the headline rate.
Can I use this calculator for any loan or country?
Yes. It works for home loans, mortgages, car loans, personal loans, student loans and business loans, and you can choose from 13 currencies. Enter the rate and term your lender offers. It assumes a fixed rate with equal monthly payments. For a mortgage, remember that property tax, home insurance and mortgage insurance are usually charged on top of the EMI, and for a floating-rate loan your payment can change when the rate changes.