Loan EMI Calculator
An EMI calculator works out your monthly loan instalment from the loan amount, interest rate and tenure, and shows the total interest you will pay over the life of the loan.
Last updated 2026-08-14
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quizExample
How this calculator works, with real numbers (no JavaScript needed):
Inputs
- Loan amount
- 5000000
- Annual interest rate
- 8.5
- Tenure (years)
- 20
- Extra months
- 0
- Loan type
- home
Results
- Monthly EMI
- ₹43,391.16
- Total payment
- ₹1,04,13,878.8
- Total interest
- ₹54,13,878.8
- Principal amount
- ₹50,00,000
functionsThe formula
An EMI (Equated Monthly Instalment) is the fixed amount you pay your lender every month until the loan is fully repaid. Each EMI has two parts: the principal (the amount you borrowed) and the interest (the cost of borrowing).
How the EMI formula works
The formula is:
EMI = P × r × (1 + r)ⁿ / ((1 + r)ⁿ − 1)
- P is the loan amount (principal)
- r is the monthly interest rate — your annual rate divided by 12 and by 100
- n is the total number of monthly payments (years × 12)
Early in the loan, most of your EMI goes toward interest. Over time the balance falls, so a larger share of the EMI pays down the principal. The amortization table below the calculator shows this month by month: you can see exactly how much of each payment is interest and how much reduces what you owe.
Worked example
For a ₹50,00,000 home loan at 8.5% for 20 years:
- Monthly rate r = 8.5 / 12 / 100 = 0.00708
- n = 20 × 12 = 240 months
- EMI = 50,00,000 × 0.00708 × (1.00708)²⁴⁰ / ((1.00708)²⁴⁰ − 1) ≈ ₹43,391
Over 240 months you pay ₹43,391 × 240 = ₹1,04,13,840 in total, of which ₹54,13,840 is interest. Notice that the interest — more than the loan amount itself — is why prepaying early saves so much.
Tips
- A slightly lower rate or shorter tenure cuts the total interest dramatically. Try the sliders.
- Making one extra EMI per year or small monthly prepayments shortens the loan years and saves lakhs in interest.
- Compare offers using the same amount and tenure — the lowest rate wins, but watch for processing fees.
helpFrequently asked questions
question_markWhat is an EMI?
EMI stands for Equated Monthly Instalment — the fixed amount you pay your lender every month to repay a loan, including both principal and interest.
question_markHow is EMI calculated?
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 tenure in months. This calculator does the math for you instantly.
question_markWhich banks have the best home loan interest rates?
Rates change frequently. As a general guide, SBI, HDFC and ICICI typically offer the lowest home-loan rates among large Indian banks. Always check the current rate and the processing fees before deciding. The interest rates in this calculator are defaults you can edit — they are not live rates.
question_markHow can I reduce the total interest on my loan?
Choose a shorter tenure, negotiate a lower rate, or make prepayments. Even a small annual prepayment shortens the loan and can save a substantial portion of the total interest.