How to use the loan & emi calculator
- Enter the loan amount you plan to borrow.
- Enter the annual interest rate from your offer (use the APR if fees are included).
- Choose the tenure in years.
- Compare the stacked chart: early years are interest-heavy, later years mostly principal.
The formula
EMI = P × r × (1 + r)^n / ((1 + r)^n − 1)
P is the principal, r the monthly rate (annual rate ÷ 12 ÷ 100) and n the number of monthly payments.
Worked example
Borrowing 50,000 at 9.5% for 5 years gives an EMI of about 1,050. Total repaid is about 63,000, so interest is roughly a fifth of everything you pay. Stretch the term to 7 years and the EMI drops, but total interest rises.
Tips from the numbers
- Shorter tenure = higher EMI but much lower total interest.
- Ask whether prepayment is allowed without penalty; even one extra payment a year cuts interest noticeably.
- Compare offers on APR, not the headline rate — processing fees change the real cost.
- Keep total debt payments comfortably within your monthly budget so an emergency doesn't force missed payments.
Watch: learn the concept
Frequently asked questions
Is EMI the same every month?
For a standard fixed-rate amortizing loan, yes. The split between principal and interest changes each month, but the total stays the same.
Why is so much interest paid early?
Interest is charged on the outstanding balance, which is largest at the start. As the balance shrinks, the interest portion falls.
What happens with a floating rate?
The EMI or the tenure changes when the rate resets. Re-run the calculator at the new rate to see the impact.
Can I use this for a car or student loan?
Yes — any fixed-rate loan repaid in equal monthly installments works the same way.