Finance
Calculate your monthly EMI, total repayment, and interest cost for any loan.
Monthly Repayment (EMI)
$304per month
Pay this amount every month for 60 months (5 years and 0 months).
Enter a loan amount, annual interest rate, and term in years or months. Your monthly EMI (Equated Monthly Instalment) is calculated using the standard amortization formula.
Loan repayment refers to paying back borrowed money in regular installments. EMI (Equated Monthly Instalment) is the fixed amount you pay every month to repay a loan plus interest. This calculator uses the standard amortization formula to compute your monthly payment based on the principal (loan amount), annual interest rate, and loan term in years or months.
The calculator applies the EMI formula, which divides your loan into equal monthly payments. Each payment covers both principal (the amount you borrowed) and interest (the cost of borrowing). Early payments are interest-heavy; later payments reduce the principal faster. The formula is: EMI = P × [r(1+r)^n] / [(1+r)^n − 1], where P is principal, r is monthly interest rate, and n is the number of months.
EMI = P × [r(1+r)^n] / [(1+r)^n − 1]
Where:
P = Principal (loan amount)
r = Monthly interest rate (annual rate / 12 / 100)
n = Total number of months
Total Repayment = EMI × n
Total Interest = Total Repayment − PrincipalThe EMI formula ensures payments are equal throughout the loan term. The numerator accounts for the monthly interest and compounding; the denominator normalizes the payment amount. Early in the loan, most of your EMI goes to interest; as time passes, more goes to principal.
| Input | Result | Notes |
|---|---|---|
| Loan: $200,000, Rate: 6% per annum, Term: 30 years | Monthly EMI: $1,199; Total Interest: $231,676 | Common mortgage scenario; total repayment is $431,676 over 360 months |
| Loan: $15,000, Rate: 8% per annum, Term: 5 years | Monthly EMI: $304; Total Interest: $2,240 | Typical car loan; total cost is $17,240 over 60 months |
| Loan: $50,000, Rate: 12% per annum, Term: 3 years | Monthly EMI: $1,612; Total Interest: $7,632 | Personal loan example; higher rate reflects unsecured nature |
EMI stands for Equated Monthly Instalment. It is the fixed amount you pay every month to repay a loan. Each EMI includes both principal repayment and interest charged by the lender.
EMI uses compound interest over the loan term, spread equally across months. Simple interest is calculated only on the principal and doesn't account for monthly repayment. Loans use EMI; the calculator is accurate for real-world loans.
Most fixed-rate loans have a fixed EMI for the entire term. However, some lenders offer variable-rate loans where the EMI changes if interest rates change. Always check your loan agreement.
Paying more than the EMI usually reduces the loan tenure or total interest (or both), depending on your loan agreement. Check if your lender allows prepayment without penalty.
No. The EMI calculation covers only principal and interest. Property taxes, insurance (for mortgages/auto loans), and processing fees must be added separately to get the true cost of borrowing.
Compare the total interest across offers using this calculator. A lower rate or shorter term reduces total interest. Also check for hidden charges, prepayment penalties, and the lender's reputation.