How this calculator works
Enter the loan amount, annual interest rate and tenure. You'll get the equated monthly instalment (EMI), the total interest you'll pay and the total amount payable, plus a yearly breakdown of principal and interest.
The EMI formula is EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1), with r as the monthly rate and n the number of months. This is identical to the standard loan-payment formula used in North America and Europe.
Lowering what you pay
Compare a shorter tenure: the EMI rises, but total interest can drop sharply. Check whether your lender allows prepayment without penalty — even occasional lump-sum prepayments shorten the loan and save interest.
Frequently asked questions
What is EMI?
EMI stands for equated monthly instalment — a fixed monthly payment covering interest and principal.
Does EMI include processing fees?
No. Add any processing fee or insurance separately to compare offers on total cost.
Is a flat rate the same as a reducing rate?
No. Flat-rate loans charge interest on the original amount throughout, so the effective rate is much higher. This calculator uses the reducing-balance method.
Results are estimates for educational purposes and depend on the assumptions you enter. They are not an offer of credit or financial advice. Last reviewed October 2026.