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Loan EMI Calculator – Calculate Monthly Loan Payments

Calculate your fixed monthly loan installment (EMI) in seconds. Enter the loan amount, interest rate, and tenure to see your monthly payment.

Results

Enter values and click Calculate to see results

What Is EMI?
Understanding Equated Monthly Installments

EMI (Equated Monthly Installment) is the fixed amount you pay every month to repay a loan. It includes both principal and interest. The beauty of EMI is predictability – you know exactly what to budget for each month.

Early in your loan, most of your EMI goes toward interest. Later, more goes toward principal. This is called amortization. A 30-year mortgage might have you paying 80% interest in year one, but only 20% interest in year 30.

EMI Formula

EMI = P × R × (1+R)^N / [(1+R)^N - 1]

P = Principal, R = Monthly interest rate, N = Number of months

Typical Loan Interest Rates
Current average rates by loan type
Loan TypeTypical Rate RangeCommon Tenure
Home Loan6.5% - 8.5%15-30 years
Car Loan5% - 10%3-7 years
Personal Loan10% - 24%1-5 years
Business Loan8% - 18%1-10 years
Education Loan8% - 12%5-15 years
Loan Against Property8% - 11%10-20 years

Rates vary by credit score, income, lender, and market conditions. Check with multiple lenders for best rates.

How Tenure Affects Your EMI
Trade-offs between loan duration and total cost

Longer tenure means lower EMI but higher total interest. Shorter tenure means higher EMI but less interest overall. The difference can be massive – a 30-year loan can cost 2-3× the original amount in total interest.

Example: $100,000 Loan at 7%

TenureMonthly EMITotal InterestTotal Payment
10 years$1,161$39,320$139,320
20 years$775$86,050$186,050
30 years$665$139,460$239,460

The 30-year loan has a $500 lower EMI than the 10-year, but costs $100,000 more in total. Choose based on what you can afford monthly versus what you can afford overall.

Frequently Asked Questions

How is EMI calculated?
EMI uses the reducing balance method: EMI = P × R × (1+R)^N / [(1+R)^N - 1]. P is loan amount, R is monthly interest rate (annual rate ÷ 12 ÷ 100), N is tenure in months. The formula ensures equal payments throughout the loan term.
Can I reduce my EMI?
Yes, by extending tenure, making partial prepayments, or refinancing at a lower rate. Prepayments directly reduce principal, which reduces future interest. Even small extra payments can shave years off your loan.
What happens if I miss an EMI?
Late fees apply (typically 2-3% per month). Your credit score takes a hit after 30 days. After 90 days, the loan becomes NPA (non-performing asset). Consistent defaults can lead to asset seizure for secured loans.
Is it better to reduce EMI or tenure?
If you can afford it, reducing tenure saves more interest. But if cash flow is tight, reducing EMI gives breathing room. Some lenders let you prepay without changing EMI – this automatically shortens tenure and maximizes interest savings.
What's the difference between flat and reducing rate?
Flat rate calculates interest on original principal throughout. Reducing rate calculates on outstanding balance. A 10% flat rate equals ~18% reducing rate. Always compare reducing rates – they're the true cost of borrowing.

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