Loan EMI Calculator — Monthly Payment & Total Interest
Before signing any loan, know two numbers: the monthly installment (EMI) and the total interest you'll hand the bank over the full term. Enter the amount, rate and tenure — this calculator shows both instantly, in any currency.
Standard reducing-balance formula: EMI = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1)
How to use this tool
- Enter the loan amount you plan to borrow.
- Enter the annual interest rate the bank quoted (the flat vs reducing distinction matters — see FAQ).
- Set the tenure in months (5 years = 60).
- Press Calculate — compare different tenures to see how strongly they change total interest.
Frequently asked questions
What is an EMI exactly?
EMI (Equated Monthly Installment) is the fixed amount you pay every month, covering both interest and principal. Early payments are mostly interest; later payments mostly principal — that's why prepaying early in the tenure saves the most.
What's the difference between flat rate and reducing balance rate?
A flat rate charges interest on the original amount for the whole term — a 7% flat rate really costs about 12–13% reducing. This calculator (like all honest ones) uses the reducing balance method. If a lender quotes a suspiciously low rate, ask which method it is.
Should I choose a longer or shorter tenure?
Longer tenure = smaller EMI but far more total interest. On a 25,000 loan at 12%, moving from 3 years to 6 years cuts the EMI by ~40% but nearly doubles the total interest. Choose the shortest tenure whose EMI you can comfortably afford.
Does prepaying a loan really help?
Usually yes — every unit of principal you clear early stops earning interest for the bank for the rest of the term. Check your loan's prepayment penalty first; many personal loans charge 1–3% of the prepaid amount, which is still often worth it early in the tenure.
How much of my income should go to EMIs?
Lenders typically cap total EMIs at 40–50% of net income, but a comfortable personal ceiling is 30–35% including all loans. Above that, one emergency can cascade into missed payments.