Loan & EMI Calculator

What is the loan & emi calculator?

A loan or EMI (Equated Monthly Installment) calculator tells you the fixed amount you will pay each month to fully repay a loan over a set term. It works for personal loans, car loans, home loans and most other fixed-rate installment credit. Because every payment is identical, EMIs make budgeting predictable: you know exactly what leaves your account each month until the balance reaches zero.

How it works

The EMI is derived from the standard amortizing-loan formula: EMI = P · r · (1 + r)^n / ((1 + r)^n − 1), where P is the principal (amount borrowed), r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the number of monthly payments (years × 12). Early payments are mostly interest; as the outstanding balance falls, more of each payment goes toward principal. The tool computes the EMI, then builds a month-by-month amortization schedule so you can see how the split shifts over time and how much interest you pay in total.

Worked example

Suppose you borrow 20,000 at 9% annual interest for 5 years. The monthly rate is 0.09 ÷ 12 = 0.0075 and the number of payments is 60. Plugging into the formula gives an EMI of about 415.17. Over the full term you pay roughly 24,910 in total, of which about 4,910 is interest. Increasing the term to 7 years lowers the monthly payment but raises total interest — a trade-off the calculator makes visible instantly.