EMI Calculator – Equated Monthly Installment

Work out the fixed monthly payment on a loan. Enter the loan amount, annual interest rate, and tenure to get your Equated Monthly Installment (EMI), total interest, and total cost of the loan.

Quick Facts

Formula
EMI = P × r × (1+r)^n / ((1+r)^n − 1)
r is the monthly interest rate and n the total number of monthly installments; at 0% it reduces to P / n.
Model
Fixed-rate reducing-balance amortization
Each installment is the same size, but the mix of principal and interest inside it shifts over the tenure.

Your Results

Calculated
Monthly EMI
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Fixed payment each month
Total interest payable
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Sum of interest across all EMIs
Total payment
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Principal + interest over the tenure
Interest vs. principal
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Total interest as % of loan amount

Ready

Enter loan amount, interest rate, and tenure, then press Calculate.

How the EMI Calculator works

An EMI (Equated Monthly Installment) is the fixed payment you make each month on a loan — a mortgage, auto loan, or personal loan — that combines principal repayment and interest into one level amount for the entire tenure. This calculator uses the standard reducing-balance amortization formula that lenders use to set that fixed payment.

The formula

For a loan principal P, a monthly interest rate r (the annual rate divided by 12, then by 100), and n total monthly installments (tenure in years × 12, or entered directly in months), the EMI is:

EMI = P × r × (1 + r)n / ((1 + r)n − 1)

If the interest rate is 0%, the formula reduces to EMI = P / n — the principal split into equal installments with no interest charged. The calculator assumes a fixed interest rate for the full tenure and standard monthly compounding, with no fees, insurance, or prepayments included.

Worked example

Take a $300,000 loan at 8% annual interest over a 20-year (240-month) tenure. The monthly rate is 0.08 / 12 ≈ 0.006667. The formula gives an EMI of about $2,509 per month. Over 240 payments that totals roughly $602,237 — the original $300,000 of principal plus about $302,237 of interest, meaning total interest paid is slightly more than the loan amount itself.

What moves the EMI most

  • Tenure: stretching the same loan over more months lowers each EMI but raises total interest paid, because the outstanding balance is charged interest for longer.
  • Interest rate: a higher rate raises the EMI for the same loan amount and tenure. The rate is usually the single biggest lever on the total cost of borrowing.
  • Loan amount: EMI scales roughly proportionally with principal — doubling the loan amount roughly doubles the EMI at the same rate and tenure.

How the payment splits over time

Even though the EMI itself never changes, the split between principal and interest inside it does. Early installments are weighted toward interest because the outstanding balance is largest then; later installments are weighted toward principal as the balance shrinks. This calculator reports the totals over the full tenure — it does not model a month-by-month prepayment or a variable-rate reset, both of which would change the schedule.

Frequently Asked Questions

How is the EMI calculated?
The calculator uses the standard reducing-balance formula: EMI = P × r × (1 + r)^n / ((1 + r)^n − 1), where P is the loan principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the total number of monthly installments (tenure in years × 12, or entered directly in months). The result is the fixed monthly payment that fully repays the loan by the end of the tenure.
What happens if the interest rate is 0%?
With no interest the formula reduces to EMI = P / n: the principal is simply divided into equal installments. For example, a $300,000 loan over 20 years (240 months) at 0% gives an EMI of $300,000 / 240 = $1,250, with no interest paid.
Why does a longer tenure lower the EMI but raise total interest?
Spreading the same principal over more months lowers each individual payment, but the outstanding balance is charged interest for a longer period, so the total interest paid over the life of the loan increases even though each installment is smaller. A shorter tenure raises the EMI but reduces total interest paid.
Does the EMI change during the loan term?
This calculator assumes a fixed-rate loan, so the interest rate and EMI stay constant for the entire tenure. The split between principal and interest within each EMI shifts over time — more interest early, more principal later — but the total monthly payment does not change. Prepayments, rate resets on a variable-rate loan, or fees are not modeled here.

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