How it works
Enter the amount you borrow, the annual interest rate and the repayment period. The calculator assumes equal monthly installments at a fixed rate and shows the monthly payment with total interest.
EMI = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1)
The formula, explained
- P is the loan principal, r the monthly rate (annual rate ÷ 12), n the number of monthly payments.
- Early payments are mostly interest; later ones are mostly principal — the standard reducing-balance method banks use.
- With a 0% rate, the payment is simply the principal divided by the months.
Tips
- A shorter period or a lower rate cuts total interest dramatically — compare both before signing.
- Processing fees, insurance and taxes are not included; check the APR in real offers.
- Extra repayments reduce total interest, but watch for prepayment penalties.
Standards and sources
- Standard reducing-balance (amortizing loan) formula used by banks worldwide
- Reference only: actual offers depend on credit checks and lender terms
Last reviewed October 7, 2026
Frequently asked questions
How is EMI calculated?
EMI = P × r × (1+r)^n / ((1+r)^n − 1), where P is the principal, r the monthly rate and n the number of months. For example, 1,000,000 at 8.5% for 20 years is about 8,678 a month.
Does it include fees or taxes?
No. Processing fees, insurance, property tax and variable rates are not included, so compare the APR in actual bank offers.
What happens if I repay early?
Early repayment cuts the remaining principal, which reduces total interest. Ask your bank about prepayment penalties first.
Is the result guaranteed?
No. It's a reference estimate from a fixed-rate formula. Actual offers depend on credit checks and bank terms.