Loan and EMI Calculator

Calculate monthly loan payments (EMI) and view a full amortization schedule with principal and interest breakdown.

Loan and EMI Calculator tool

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Example

Input: $25,000 loan at 8% annual interest for 5 years (60 monthly payments)

Result: Monthly EMI $506.91, Total Interest $5,414.59, Total Payment $30,414.59

EMI = P x r x (1 + r)^n / ((1 + r)^n - 1) with r = 0.08/12 and n = 60, which gives $506.91 per month.

Monthly Payment on a $10,000 Loan

Interest Rate3 Years5 Years10 Years20 Years
4%$295.24$184.17$101.25$60.60
6%$304.22$193.33$111.02$71.64
8%$313.36$202.76$121.33$83.64
10%$322.67$212.47$132.15$96.50
12%$332.14$222.44$143.47$110.11
15%$346.65$237.90$161.33$131.68

Reducing-balance EMI. For a $50,000 loan, multiply by 5.

  1. Enter the total loan amount you are borrowing.
  2. Set the annual interest rate offered by the lender.
  3. Specify the loan tenure in months or years.
  4. View the monthly EMI payment, total interest paid, and total amount payable.
  5. Review the full amortization schedule showing principal and interest breakdown per month.

How Loan EMIs Are Calculated

An EMI (equated monthly installment) is the fixed monthly payment that clears a loan, interest included, by the end of its term. A $25,000 loan at 8% over 5 years costs $506.91 a month, or $5,414.59 in total interest. Enter any amount, rate and term to see yours.

Set the term in years or months. The tool shows the monthly EMI, the total you will repay, the total interest, and interest as a share of the amount borrowed. A chart shows how much principal and interest you have paid over time. The amortization schedule lists every payment, split into principal, interest and the balance left. The first 12 months show by default, and one button expands the full list.

The schedule tells you something the EMI alone does not. Early payments are mostly interest, because interest is charged on a large balance. As the balance shrinks, more of each payment goes to the principal. This is also why extra payments made early in a loan save the most.

Use the table below to compare terms quickly. A longer term lowers the payment but raises the total cost. On $10,000 at 8%, a 3-year loan costs $313.36 a month, while 10 years costs $121.33 a month. The catch is that you pay about $3,300 more in interest over those extra years. For home loans with tax and insurance, use the Mortgage Calculator. For car loans with a trade-in and sales tax, try the Auto Loan Calculator.

This tool uses the reducing-balance method with a fixed rate. It does not include fees, insurance or rate changes, so your lender's quote may differ slightly.

Formula / How It Works

EMI = P x r x (1 + r)^n / ((1 + r)^n - 1), where P = principal, r = monthly interest rate (annual rate / 12), n = total number of monthly payments

Sources

Frequently Asked Questions

EMI = P x r x (1 + r)^n / ((1 + r)^n - 1). P is the loan amount, r is the monthly rate (yearly rate / 12 / 100) and n is the number of monthly payments. For $25,000 at 8% over 60 months, r is 0.00667 and the EMI comes to $506.91.
Interest each month is charged on the balance you still owe. At the start the balance is highest, so the interest part is largest. On a $25,000 loan at 8%, the first payment includes about $167 of interest. By the last year, the interest part is only a few dollars.
It is cheaper each month but more expensive overall. Spreading the same loan over more payments lowers the EMI, yet interest runs for longer. On $10,000 at 8%, 3 years costs about $1,281 in interest, while 10 years costs about $4,560. Pick the shortest term you can afford comfortably.
A flat rate charges interest on the original amount for the whole term, even as you pay it down. Reducing balance charges interest only on what you still owe, which is fairer and cheaper at the same stated rate. This tool uses the reducing-balance method, which is what most banks use.
Borrow less, choose a shorter term, get a lower rate, or pay extra toward the principal when your lender allows it. Extra payments early in the loan save the most. Check for prepayment penalties first, and ask your lender or a financial adviser if you are unsure.

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