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Finance & money·Loans

Loan / EMI Calculator

Monthly EMI, total interest, and repayment with the full formula and worked example. Free loan math in your browser — no account or uploads.

Added Apr 18, 2026 · Updated May 1, 2026

Scenario A

Quick examples

Input

Result

Enter a value for loan amount to see your result.

How it works

Calculates the fixed monthly payment (EMI) for a loan given the principal, annual rate, and term in years, using the standard amortization formula.

Formula

EMI = P · r / (1 − (1 + r)^(−n))

P
Principal (loan amount)
r
Monthly interest rate (annual rate ÷ 12 ÷ 100)
n
Number of monthly payments (years × 12)

Step by step

  1. 01Convert the annual rate to a monthly rate by dividing by 12 and by 100.
  2. 02Compute the number of monthly payments as years × 12.
  3. 03Apply the EMI formula to get the fixed monthly payment.
  4. 04Multiply by n to get the total amount paid over the life of the loan.
  5. 05Subtract the principal from the total to get total interest paid.

Examples

$20,000 at 7% for 5 years

A $20,000 loan at 7% annual interest over 5 years costs about $396 per month, and you pay roughly $3,761 in total interest.

Inputs

Loan amount:
20000
Annual interest rate:
7
Loan term (years):
5

Result

Monthly payment:
396.02
Total paid:
23761.44
Total interest:
3761.44

$10,000 at 0% for 2 years

At 0% interest, you simply repay the principal evenly over 24 months.

Inputs

Loan amount:
10000
Annual interest rate:
0
Loan term (years):
2

Result

Monthly payment:
416.67
Total paid:
10000
Total interest:
0
Note: Assumes a fixed interest rate and equal monthly installments. Does not include fees, insurance, or taxes.

More about this tool

This calculator uses the standard reducing-balance EMI formula used by banks worldwide:

EMI = P × r × (1 + r)ⁿ / ((1 + r)ⁿ − 1)

Where P is the principal, r is the monthly interest rate (annual ÷ 1200), and n is the total number of months.

Zero-Rate Handling

When the interest rate is 0%, the formula is undefined (division by zero). The calculator automatically handles this edge case using the simplified formula: EMI = P ÷ n.

Reading the Results

  • Monthly EMI — the fixed amount due each month
  • Total Payment — EMI × n (the entire amount you repay over the loan term)
  • Total Interest — Total Payment − Principal (the cost of borrowing)

A longer tenure reduces your EMI but increases the total interest paid. Use this calculator to find the right balance for your budget.

Frequently asked questions

What is EMI?

EMI stands for Equated Monthly Installment — the fixed amount you pay each month until a loan is fully repaid, covering both principal and interest.

Does this include taxes or fees?

No. This calculator reflects only principal and interest. Actual payments may include property taxes, insurance, or origination fees.

What happens if the interest rate is 0%?

At 0% interest, the monthly payment is simply the loan amount divided by the number of months. No interest is charged.

Does EMI stay constant if my bank uses daily reducing balance?

This calculator models standard fixed EMI on a monthly reducing balance. Some products recalculate interest daily or let you prepay flexibly; your statement can differ slightly from a textbook EMI schedule.

How should I treat floating or variable rates?

Enter the current annual rate to see today's payment. For variable loans, the bank will reprice the rate on its schedule, so your EMI or tenure may change unless you fix the term and adjust payment.