Use our free EMI calculator to instantly estimate your monthly loan payment, total interest, and repayment amount.
This tool helps you plan smarter by comparing different interest rates, loan tenures, and loan types (home, car, personal). No manual math just enter the values and see results instantly.
EMI Calculator (With Breakdown + Donut Chart)
Enter loan amount, interest rate, and tenure to see EMI + total interest instantly.
Tip: Longer tenure can reduce EMI, but usually increases total interest.
View amortization schedule (month-wise)
| Month | EMI | Principal | Interest | Balance |
|---|
Read: What is EMI? (Explained in Simple words with bullet points)
This EMI calculator uses the standard banking formula applied by financial institutions.
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How EMI Is Calculated?
Banks use a mathematical formula to calculate EMI:
Where:
- P = Loan amount (Principal)
- r = Monthly interest rate (annual rate ÷ 12)
- n = Loan tenure in months
EMI Calculation Example.
Let’s say:
Car price = $30,000
Down payment = $5,000
Loan amount = $25,000
Interest rate = 7% per year
Loan tenure = 6 years (72 months)
Monthly interest rate:
7% ÷ 12 = 0.58% per month
Using the standard loan calculation formula, the monthly payment comes to approximately:
$426 per month
Total payment over 6 years:
$426 × 72 = $30,672
Total interest paid:
$30,672 – $25,000 = $5,672
What This Really Means
Even though the car cost $30,000 and you put $5,000 down, the total amount you’ll pay becomes:
- $5,000 (down payment)
- $30,672 (loan repayment)
Total = $35,672
That means the car ends up costing $5,672 more than the borrowed amount because of interest.
If the same loan were stretched from 6 years to 7, the EMI would look more affordable against your monthly salary but you’d stay in debt longer and pay significantly more interest overall. Lower monthly pressure can feel comfortable, yet it quietly delays wealth-building and slows real financial progress.
Read: Why Salary Increases Don’t Make You Rich (And Why Most People Stay Stuck)
Who Should Use This EMI Calculator?
- Home loan buyers
- Car loan applicants
- Personal loan borrowers
- Business loan planners
“Below are the most common questions people ask before taking a loan or using an EMI calculator.”
Frequently Asked Questions (FAQs)
What is EMI in a loan?
EMI (Equated Monthly Installment) is the fixed monthly amount a borrower pays to repay a loan. It includes both principal and interest components.
How is EMI calculated?
EMI is calculated using the formula:
EMI = P × r × (1 + r)^n / [(1 + r)^n – 1]
Where P is loan amount, r is monthly interest rate, and n is loan tenure in months.
Does higher interest rate increase EMI?
Yes. A higher interest rate increases the total interest paid and raises the monthly EMI amount.
Is EMI good or bad?
EMI can be good or bad depending on how it is used.
It helps manage large purchases through smaller monthly payments. However, longer tenures and higher interest rates increase the total interest paid over time.
Can I reduce my EMI amount?
Yes. You can reduce EMI by:
Increasing loan tenure
Negotiating lower interest rate
Making part-prepayments
Does EMI include interest?
Yes. Every EMI includes both principal repayment and interest charged by the bank.
Is this EMI calculator free to use?
Yes. This EMI calculator is completely free and works instantly.
How much EMI is safe compared to salary?
Financial experts suggest keeping total EMIs below 30–40% of your monthly income to avoid financial stress.
How do I calculate EMI using this calculator?
To calculate EMI, enter the loan amount, annual interest rate, and loan tenure in months. The calculator will instantly show your monthly EMI, total interest payable, and total repayment amount.
Can I calculate home loan EMI and car loan EMI here?
Yes. This EMI calculator works for home loans, car loans, personal loans, education loans, and business loans. Simply adjust the loan amount, interest rate, and tenure accordingly.
What happens if I increase loan tenure?
Increasing loan tenure reduces your monthly EMI but increases the total interest paid over time.
Does this EMI calculator show total interest?
Yes. Along with monthly EMI, the calculator displays total interest payable and total repayment amount for better financial planning.
What is a good EMI amount for my salary?
Financial planners recommend keeping total EMIs below 30–40% of your monthly income. Crossing this limit may increase financial stress and reduce savings capacity.
EMI vs Lump Sum: Which is better?
EMI allows flexible payments over time but increases total interest paid. Lump sum payments avoid interest but require full upfront cash. The better option depends on your cash flow and financial goals.