Loan EMI Calculator: Monthly Payment, Total Interest & Cost
Find the monthly instalment, total interest and total cost of a loan. Works in any currency.
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About this calculator
An equated monthly instalment (EMI) is a fixed payment you make every month until a loan is repaid. Each payment covers interest on the outstanding balance plus part of the principal, with the interest share shrinking over time.
Use the calculator to compare loan offers, test how a shorter tenure changes the interest, or check whether a payment fits your budget. It works with any currency.
How it works
EMI = P × r × (1 + r)n ÷ [(1 + r)n − 1]
P = loan amount, r = monthly interest rate (annual rate ÷ 12 ÷ 100), n = number of monthly payments. For a 0% loan, EMI = P ÷ n.
How to read your result
A longer tenure lowers the monthly payment but increases total interest substantially. Try the same loan over 3, 5 and 7 years to see the trade-off. Check whether the quoted rate is flat or reducing-balance: this calculator assumes reducing-balance, the standard for most bank loans.
Worked example
A loan of 1,000,000 at 12% annual interest over 5 years (60 months).
| Monthly instalment (EMI) | 22,244.45 |
| Total interest | 334,667 25.1% of total payment |
| Total payment | 1,334,667 Principal + interest over 60 months |
Frequently asked questions
How is EMI calculated?
EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1), where r is the monthly rate and n the number of months.
Does a higher down payment reduce EMI?
Yes. A lower loan amount reduces the EMI and the total interest in proportion.
What is a flat vs reducing interest rate?
Flat rates charge interest on the original amount for the entire term and cost more than the same quoted reducing-balance rate.
Can I pay off a loan early?
Often yes, but check for prepayment penalties. Early payments cut interest because they reduce the balance sooner.
Limitations and when not to use
Illustrative only. Actual loan terms, fees and compounding conventions vary by lender and country.
Sources and references
- Standard annuity (amortisation) formula.
Last updated: 2026-10-09