EMI Calculator

This is the quick version: principal, rate, tenure, instalment. It exists for the moments when you are on a showroom floor or a phone call with a relationship manager and need one number fast, without filling in escrow or fee fields.

Inputs

Loan amount

Annual interest rate(%)

Tenure(years)

Result

4,339.12 per month

Total payable 1,041,387.88 · Total interest 541,387.88

Visual breakdown

How it works

EMI = P × r × (1+r)^n / ((1+r)^n − 1)

1Monthly rate r = 8.5% ÷ 12 ÷ 100 = 0.007083
2Number of payments n = 240
3EMI = P × r × (1+r)^n / ((1+r)^n − 1) = 4,339.12
4Total interest = (EMI × n) − P = 541,387.88

How the emi calculator works

EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), with r as the monthly rate and n as the number of monthly payments.

Total interest = EMI × n − P. The tool shows both so the instalment is never read in isolation.

For a rough mental check, an instalment on a 10-year loan at around 9% lands near 1.27% of the principal per month — useful for sanity-checking a quote on the spot.

Worked example: 250,000 personal loan at 12% over 5 years

r = 12 ÷ 1,200 = 0.01, n = 60.
(1.01)^60 ≈ 1.8167.
EMI = 250,000 × 0.01 × 1.8167 ÷ 0.8167 ≈ 5,561.
Total repayment = 5,561 × 60 = 333,660, so interest is about 83,660 — a third of the amount borrowed.

Common mistakes to avoid

Quoting tenure in years into a monthly formula

n must be months. Five years is 60, not 5; the mismatch is the most frequent cause of an implausible instalment.

Ignoring the difference between rate and APR

APR includes processing fees. On small, short loans a 2% fee can add more than a percentage point of effective cost.

Frequently asked questions

What does EMI stand for?

Equated monthly instalment — a fixed payment covering interest on the current balance plus a slice of principal.

Can I calculate EMI without a formula?

Only approximately. Simple-interest shortcuts understate the payment because they ignore the reducing balance, so use the amortisation formula for anything you plan to sign.

How is EMI different from a mortgage payment?

The arithmetic is identical. A mortgage bill usually adds escrowed taxes and insurance on top of the EMI-equivalent principal and interest.

Does the first EMI include extra charges?

Often. Lenders may collect interest for the broken period between disbursal and the first due date, so the opening debit can exceed the quoted instalment.