Loan EMI Calculator
The Loan EMI Calculator works out the fixed monthly instalment (EMI) you will pay on any loan, whether it is a home loan, car loan, personal loan or business loan. Enter the loan amount, the annual interest rate and the tenure, and it instantly shows your monthly payment, the total interest you will pay over the life of the loan and the total amount repaid.
What an EMI actually is
EMI stands for Equated Monthly Instalment. It is the fixed amount you pay the lender every month until the loan is fully repaid. Each EMI has two parts: the interest on the outstanding balance and a slice of the principal. In the early months most of the payment is interest; toward the end most of it is principal. The EMI itself stays the same, which is what makes budgeting predictable.
The formula
The standard reducing-balance EMI formula is EMI = P × r × (1 + r)n / ((1 + r)n − 1), where P is the principal (loan amount), r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the number of monthly instalments (years × 12).
A worked example
Say you borrow 10,00,000 at 9% per year for 20 years. The monthly rate is 0.09 ÷ 12 = 0.0075 and n = 240. Plugging into the formula gives an EMI of about 8,997 per month. Over 20 years you repay roughly 21.6 lakh, which means about 11.6 lakh is interest. Shorten the tenure to 15 years and the EMI rises to about 10,142, but the total interest drops sharply because you are borrowing the money for less time.
How to use the result to your advantage
Two levers change your EMI the most: the interest rate and the tenure. A longer tenure lowers the monthly payment but raises total interest; a shorter tenure does the opposite. Try a few combinations here before you sign anything, and keep your total EMIs under roughly 40% of your take-home income so the loan stays comfortable. Even a small prepayment early in the loan removes principal that would otherwise attract years of interest.
How to use
- Enter your details in the fields above. The Loan EMI Calculator accepts everyday values and checks them as you type.
- Press the action button (or just start typing for live tools) to run the calculation.
- Read your result, along with any supporting figures, in the clearly labelled result box.
- Use Copy result to grab the answer, Reset to start again, or Copy link to share this tool.
Why use this tool
Finance Wave built the Loan EMI Calculator to be genuinely useful: it validates your input so you never see a broken result, formats numbers for your region automatically, and stays readable in both light and dark mode. Because everything happens on your device, it is private by design and keeps working even without an internet connection once the page has loaded.