How to use the EMI calculator
- Enter the loan amount in any currency.
- Enter the yearly interest rate offered by the lender.
- Enter the loan term in years or months.
- Press Calculate to see the monthly EMI, total interest, total payment, a principal-vs-interest chart, the balance over time and a year-by-year schedule.
EMI formula
\text{EMI} = \dfrac{P \times r \times (1 + r)^{n}}{(1 + r)^{n} - 1}P– the loan amount (principal)r– the monthly interest rate:r = \dfrac{\text{yearly rate}}{12 \times 100}n– the number of monthly payments (years × 12)
- Monthly rate:
r = \frac{8.5}{12 \times 100} = 0.0070833 - Payments:
n = 20 \times 12 = 240 - Growth factor:
(1 + r)^{240} = 1.0070833^{240} = 5.4412 - EMI:
\begin{aligned} \text{EMI} &= \frac{30{,}00{,}000 \times 0.0070833 \times 5.4412}{5.4412 - 1} \\ &= 26{,}035 \end{aligned}
Total paid over 240 payments: 62,48,327, of which 32,48,327 is interest – more than the amount borrowed.
EMI for every 1 lakh (1,00,000) borrowed
Multiply by your loan amount in lakh. For 25 lakh at 9% over 20 years: 25 × 899.73 = 22,493 a month.
| Rate | 5 yrs | 10 yrs | 15 yrs | 20 yrs | 25 yrs | 30 yrs |
|---|---|---|---|---|---|---|
| 7% | 1,980 | 1,161 | 899 | 775 | 707 | 665 |
| 8% | 2,028 | 1,213 | 956 | 836 | 772 | 734 |
| 8.5% | 2,052 | 1,240 | 985 | 868 | 805 | 769 |
| 9% | 2,076 | 1,267 | 1,014 | 900 | 839 | 805 |
| 10% | 2,125 | 1,322 | 1,075 | 965 | 909 | 878 |
| 11% | 2,174 | 1,378 | 1,137 | 1,032 | 980 | 952 |
| 12% | 2,224 | 1,435 | 1,200 | 1,101 | 1,053 | 1,029 |
Shorter or longer term?
A longer term lowers the EMI but greatly increases the total interest. For a 30 lakh loan at 8.5%:
| Term | Monthly EMI | Total interest | Total payment |
|---|---|---|---|
| 10 years | 37,196 | 14,63,485 | 44,63,485 |
| 15 years | 29,542 | 23,17,594 | 53,17,594 |
| 20 years | 26,035 | 32,48,327 | 62,48,327 |
| 25 years | 24,157 | 42,47,044 | 72,47,044 |
| 30 years | 23,067 | 53,04,266 | 83,04,266 |
How each EMI is split
Every payment first covers the interest on the outstanding balance; the rest repays principal. In the example above:
- Month 1: interest = 30,00,000 × 0.0070833 = 21,250, so only 4,785 reduces the loan.
- As the balance falls, the interest part shrinks and the principal part grows every month.
- The balance chart and the yearly schedule in the result show this over the whole loan.
What changes your EMI
| Factor | Effect on EMI | Effect on total interest |
|---|---|---|
| Larger loan amount | Higher | Higher |
| Higher interest rate | Higher | Higher |
| Longer term | Lower | Much higher |
| Bigger down payment | Lower | Lower |
| Part-prepayment | Lower (or shorter term) | Lower |
Ways to pay less interest
- Choose the shortest term whose EMI you can comfortably afford.
- Make part-prepayments early in the loan, when interest is highest.
- Compare lenders – even 0.5% lower can save a large sum over 20 years.
- Raise your EMI when your income rises, to finish the loan sooner.
The calculator assumes a fixed rate and no fees. With a floating rate the EMI or term changes when the rate changes, and processing fees or insurance are extra.
EMI in Excel or Google Sheets
| You want | Formula |
|---|---|
| Monthly EMI | =PMT(8.5%/12, 240, -3000000) |
| Interest in month 1 | =IPMT(8.5%/12, 1, 240, -3000000) |
| Principal in month 1 | =PPMT(8.5%/12, 1, 240, -3000000) |
Frequently asked questions
What is the EMI for a 10 lakh loan?
At 9% a year it is about 20,758 a month over 5 years, or 12,668 over 10 years. Enter your own rate and term above for the exact figure.
Which currency does this use?
Any. Enter the amount in your own currency – rupees, dollars, euros – and every result is in the same currency.
Does the EMI include processing fees or insurance?
No. It covers principal and interest only. Add any fees separately.
Is it better to choose a longer loan term?
A longer term lowers the EMI but raises the total interest a lot. Pick the shortest term with an EMI you can comfortably pay.
Can I use this for home, car and personal loans?
Yes. Any loan with a fixed rate and equal monthly payments uses the same formula.
What happens with a 0% interest rate?
The EMI is the loan amount divided by the number of months, and the total interest is zero.