Finance · worldwide
Loan & EMI Calculator
Find your monthly payment and how much interest a loan really costs.
Total cost
What is an EMI?
EMI stands for Equated Monthly Instalment — the fixed amount you pay each month until a loan is repaid. It combines interest and principal. Early payments are mostly interest; later ones are mostly principal. The formula is EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1), where P is the loan amount, r is the monthly interest rate, and n is the number of months.
The key insight: a longer term lowers the monthly payment but increases the total interest you pay. Shortening the term or lowering the rate saves money overall.
Questions
Does this work for home, car, and personal loans?
Yes. Any fixed-rate instalment loan uses the same EMI formula. Enter the amount, annual rate, and term in years.
Why does a longer loan cost more?
You borrow the money for longer, so interest accrues over more months even though each monthly payment is smaller.
Is the interest rate monthly or yearly?
Enter the annual rate. The tool converts it to a monthly rate for the calculation.