How to use the Loan EMI Calculator
- Enter the loan amount you want to borrow.
- Enter the yearly interest (markup) rate your bank quoted.
- Enter the tenure in years.
- Read your monthly installment, total interest and total repayment on the right.
How it's calculated
Show the formula
P = loan amount · r = yearly rate ÷ 12 ÷ 100 · n = number of months
A longer tenure lowers the installment but raises total interest.
Worked example
These are the example numbers the calculator opens with. Change any of them above to see your own result.
You enter
| Loan amount | Rs 25,00,000 |
|---|---|
| Interest rate (per year) | 14% |
| Tenure | 5 years |
You get
| Monthly installment | Rs 58,171 |
|---|---|
| Loan amount | Rs 25,00,000 |
| Total interest | Rs 9,90,238 |
| Total you pay | Rs 34,90,238 |
Tips
- A longer tenure lowers the installment but you pay much more interest overall.
- Ask the bank for the total cost including processing fee and insurance, not just the rate.
- Paying even one extra installment a year can cut months off the loan.
Frequently asked questions
What is EMI?
EMI (equated monthly installment) is the fixed amount you pay every month until the loan is repaid. Each installment covers that month's interest plus part of the loan.
Does this work for car, home and personal loans?
Yes. Any loan with a fixed rate and equal monthly installments uses the same formula, including car, home, bike and personal loans.
Why do I pay more interest at the start?
Interest is charged on the remaining balance. The balance is highest at the start, so early installments are mostly interest and later ones are mostly principal.
Is the result exact?
It is accurate for fixed-rate loans. Banks with a variable rate (linked to KIBOR) will change your installment when the rate changes, and fees are not included.
How can I lower my EMI?
Borrow less, make a bigger down payment, choose a longer tenure, or negotiate a lower rate.