EMI Calculator
An EMI (equated monthly installment) is the fixed amount you repay every month on a loan — the same figure each month until the loan is cleared. This calculator works for any loan: home, car, personal, or business. Enter the amount, interest rate, and term to see your monthly payment, the total interest you will pay, and a month-by-month breakdown.
- Principal
- Interest
- Principal
- $250,000.00
- Total interest
- $61,375.33
- Total paid
- $311,375.33
- Term
- 5 yr
Over the full term you pay 25% of the borrowed amount in interest. Your payments only start putting more toward principal than interest in month 1.
Amortization schedule
| Year | Payment | Interest | Principal | Balance |
|---|---|---|---|---|
| 1 | $62,275.07 | $20,817.56 | $41,457.51 | $208,542.49 |
| 2 | $62,275.07 | $16,928.56 | $45,346.51 | $163,195.99 |
| 3 | $62,275.07 | $12,674.74 | $49,600.32 | $113,595.67 |
| 4 | $62,275.07 | $8,021.89 | $54,253.17 | $59,342.49 |
| 5 | $62,275.07 | $2,932.57 | $59,342.49 | $0.00 |
Ways to optimize
Real what-if scenarios calculated from your numbers.
Scenarios use the exact same math as the calculator — no estimates.
How it works
Each EMI is split between interest on the outstanding balance and repayment of principal. Early on, most of the payment is interest because the balance is large; as the balance falls, more of each payment goes to principal. The EMI itself stays constant — only the split changes. This is called reducing-balance (amortized) interest, and it is how the vast majority of consumer loans work worldwide.
Because the math depends only on the amount, the rate, and the term, an EMI is identical in any currency — only the symbol changes.
EMI = P · i · (1 + i)^n / ((1 + i)^n − 1), where P = loan amount, i = monthly interest rate (annual rate ÷ 12 ÷ 100), and n = number of monthly installments (years × 12). When the rate is 0, EMI = P ÷ n.
Worked example
Borrow 250,000 at 9% per year for 5 years (60 months). The monthly rate is 9 ÷ 12 ÷ 100 = 0.0075. Plugging into the formula gives an EMI of about 5,189 per month. Over 60 months you repay roughly 311,361 in total, of which about 61,361 is interest — around 25% of what you borrowed.
Things to watch out for
A 0% loan is simply the amount divided by the number of months. Watch for loans quoted as "flat" interest rather than reducing-balance — flat-rate loans charge interest on the original amount for the whole term, so their effective cost is much higher than the same nominal rate on a reducing-balance loan. This calculator uses the standard reducing-balance method.
Frequently asked questions
What is the difference between EMI and interest rate?+
The interest rate is the annual cost of borrowing, expressed as a percentage. The EMI is the actual fixed amount you pay each month, which depends on the rate, the loan amount, and the term together.
Does a longer term reduce my EMI?+
Yes — spreading the loan over more months lowers each monthly payment, but you pay interest for longer, so the total interest goes up. A shorter term means a higher EMI but less interest overall.
Is the EMI the same in every country?+
The calculation is identical anywhere; only the currency symbol differs. Switch the currency at the top of the page to see your numbers in your own currency.
How can I lower the total interest I pay?+
Choose a shorter term, negotiate a lower rate, or make prepayments. Even small extra payments early in the loan cut the total interest significantly — see our loan prepayment calculator.
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Disclaimer: This calculator is for educational and informational purposes only and provides estimates, not financial advice. Interest rates, taxes, fees, and local rules vary and change over time. Confirm figures with a qualified professional before making any financial decision.
Last reviewed: 2026-06-22