EMI Calculator
Quick answer: EMI (equated monthly instalment) is the fixed amount you pay each month to repay a loan with interest. A ₹50,00,000 loan at 8.5% a year for 20 years has an EMI of about ₹43,391. Enter amount, rate and tenure to see EMI, total interest and the full cost.
Use the EMI Calculator
EMI formula and what each symbol means
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r is the monthly rate (annual rate ÷ 12 ÷ 100) and n is the number of months.
| Symbol | Meaning |
|---|---|
| P | Principal loan amount |
| r | Monthly interest rate as a decimal |
| n | Tenure in months |
EMI examples
India
P = ₹50,00,000, annual rate 8.5%, tenure 20 years. r = 0.085 ÷ 12 = 0.0070833; n = 240. EMI is about ₹43,391. Total paid is about ₹1.04 crore, so interest is about ₹54 lakh.
US
P = $300,000, annual rate 6.5%, 30 years (360 months). The monthly payment on principal and interest is about $1,896, before tax and insurance.
How to calculate EMI step by step
- Convert the annual rate to a monthly rate: divide by 12, then by 100.
- Convert years to months.
- Apply the EMI formula.
- Multiply EMI by n to get total payment; subtract P to get total interest.
How to read your EMI result
Early EMIs are mostly interest and later ones mostly principal. Paying even one extra EMI a year can cut the tenure by years.
Common mistakes when calculating EMI
- Using the annual rate directly instead of the monthly rate.
- Forgetting processing fees and insurance in the true cost.
- Ignoring floating-rate changes during the tenure.
EMI FAQ
How is EMI calculated?
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1). P is the loan, r the monthly rate and n the months. Our calculator applies it instantly.
Does a longer tenure reduce EMI?
Yes, the monthly amount falls, but total interest rises sharply because you owe money for longer.
What happens to EMI if the interest rate changes?
On floating-rate loans the lender usually adjusts either the EMI or the tenure. Check your loan agreement for which one.
Is the US mortgage payment the same as EMI?
The principal-and-interest part uses the same formula. US payments often add property tax and insurance.
Method, review and disclaimer
Edited by: Hemant Kumar and Anjita Rai, founders of ToolsVault (SEO and content professional, not a licensed adviser). Method: this tool runs in your browser using the formula shown on this page; the numbers you enter are not sent to our servers.
Disclaimer: Figures are estimates. Check actual rates and fees with your lender.