TheFreeTool

EMI Calculator

Enter the loan amount, the yearly interest rate and how long you will take to repay. You get your monthly EMI, the interest you will pay and a repayment schedule.

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Repayment schedule

What it does

  • Monthly EMI, total interest and total payment in one view
  • Sliders for rate and tenure, so you can compare loans quickly
  • Year-by-year or month-by-month repayment table
  • Works with any currency
  • Nothing you type leaves your browser

How to use it

  1. Pick your currency and type the loan amount.
  2. Enter the yearly interest rate your bank quotes.
  3. Set the tenure in years or months.
  4. Read your EMI on the right. Open the schedule to see how much of each payment is interest.

How is EMI calculated?

EMI stands for equated monthly instalment. It is the fixed amount you pay every month until the loan is cleared. Each payment has two parts: interest on what you still owe, and a slice of the loan itself. In the early months most of your payment is interest. Later, most of it is principal.

The formula is EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1). P is the loan amount, r is the monthly interest rate (yearly rate ÷ 12 ÷ 100) and n is the number of months. If the rate is 0, the EMI is just the loan amount divided by the number of months.

Example

Say you borrow 1,000,000 at 9% a year for 20 years. The monthly rate is 0.75% and there are 240 months. The EMI comes to about 8,997. Over 20 years you pay around 2,159,000 in total, and roughly 1,159,000 of that is interest. A shorter tenure raises the EMI but cuts the interest a lot.

Questions people ask

What does EMI mean?
Equated monthly instalment. It is the fixed amount you pay your lender each month until the loan is repaid.
Does a longer tenure save money?
It lowers the monthly EMI, but you pay more interest in total. A shorter tenure does the opposite. Try both with the sliders.
Why is most of my early EMI interest?
Interest is charged on what you still owe. At the start that is the whole loan, so interest is at its highest. As the balance falls, more of each payment goes to the principal.
Will my bank's figure match this exactly?
It should be very close. Banks may round differently, add processing fees or count days another way, so small differences are normal. Always check the offer you are given.
Is my data stored?
No. The numbers stay in your browser. They are saved only on your own device, so they are still there when you come back.
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