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EMI Calculator

Enter the loan amount, annual interest rate and tenure in months to see the EMI, the total interest you will pay and the total outflow over the loan.

EMI (equated monthly instalment) is simply the fixed monthly loan payment. This uses the reducing-balance method that most lenders use for term, car and home loans, so interest is charged only on what you still owe.

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EMI summary

PrincipalTotal interest
Monthly payment (EMI)
$21,493.90
Principal
$1,000,000.00
Total interest
$289,634.00
Total payable
$1,289,634.00
Tenure
60 months
Reducing-balance EMI. Processing fees and insurance are not included.

This loan costs $289,634.00 in total interest on top of the $1,000,000.00 you're borrowing, about 28.96% of the principal, spread across 60 months.

Smart next steps

Formula

EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1)

where r = annual rate ÷ 12 ÷ 100 and n = tenure in months

Processing or arrangement fees, insurance and any tax on those charges are not part of the EMI, so budget for them separately. If a lender quotes a flat rate instead, see flat rate vs reducing balance EMI before comparing offers.

Worked example

A $100,000 loan at 7% for 60 months has a monthly payment (EMI) of about $1,980, total interest of roughly $18,807 and a total payable near $118,807.

How to use this calculator

  1. 1Enter the loan amount you plan to borrow, in your chosen currency.
  2. 2Enter the annual interest rate quoted by the lender.
  3. 3Enter the tenure in months, then read the EMI, total interest and total repayment.

When businesses use it

  • Checking whether a machinery loan EMI fits in your monthly cash flow.
  • Comparing two lenders where one offers a lower rate but a shorter tenure.
  • Planning a vehicle purchase for the business and its effect on working capital.

How lenders build your EMI

An equated monthly instalment keeps the payment constant while the split inside it changes every month. Early instalments are mostly interest because the outstanding principal is high; later instalments are mostly principal. On a five-year loan you will have repaid less than a third of the principal at the halfway mark, which matters if you plan to close the loan early or sell the asset.

Three inputs move the EMI: principal, rate and tenure. Extending the tenure lowers the monthly figure but raises total interest sharply: stretching a $100,000 loan at 7% from three years to five cuts the monthly payment by roughly a third while adding over $7,600 in interest. The right tenure is the shortest one whose EMI you can service through a slow month.

The EMI is not the whole cost of borrowing. Processing or arrangement fees, documentation charges, insurance bundled at disbursement and prepayment penalties on fixed-rate loans all add to the effective rate. Ask for the annual percentage rate rather than the headline rate when you compare two offers.

Before you sign the loan agreement

  • Ask whether the rate is fixed or floating, and what the reset frequency is.
  • Check the prepayment charge. Some markets limit it by law, for example floating-rate loans to individuals in India usually carry none.
  • Confirm whether insurance is optional and whether it is funded from the loan.
  • Keep total loan repayments to a level you could still manage in a slow month. Lenders apply their own income limits on top.

Learn the maths behind it

  • How to calculate EMI

    EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1), where r is the monthly rate and n the number of months.

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Frequently Asked Questions

Yes, but you pay much more interest overall. Compare both figures before choosing.

Prepayment reduces the outstanding principal, which cuts either the remaining tenure or the EMI, depending on your lender.

No. When the benchmark rate changes, lenders usually keep the EMI and adjust the tenure, or reset the EMI at review.

Most lenders keep the EMI and shorten the tenure by default, which saves more interest. You can usually request the opposite in writing.

Lenders often charge broken-period interest from the disbursement date to the first EMI date, which is added to the first instalment.

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Calculations happen instantly in your browser. Your calculator inputs aren't sent to our servers. KaroDesk provides calculations and information for general informational purposes. Results should be verified against applicable laws, official notifications, employer policies, lender terms, or professional advice where appropriate. Read our full disclaimer.