EMI Calculator

What Is an EMI?

An EMI (Equated Monthly Installment) is the fixed monthly payment you make toward a loan — personal, auto, or education — until it’s fully repaid. Each installment covers part principal and part interest, with the interest portion shrinking over time.

How EMI Is Calculated

EMI = [P × R × (1+R)ⁿ] ÷ [(1+R)ⁿ − 1], where P = loan principal, R = monthly interest rate (annual rate ÷ 12 ÷ 100), n = number of monthly installments.

Example

A $20,000 loan at 9% annual interest over 3 years (36 months): R = 0.0075, n = 36 → EMI ≈ $636/month, with total interest of roughly $2,900 over the loan term.

Buying a home instead? Try our Mortgage & Loan Calculator for full amortization schedules, or the SIP Calculator to see how investing that EMI amount instead could grow over time.

Learn more: How to Calculate Loan EMI, EMI vs Mortgage Calculator, and Fixed vs Floating Interest Rate

Learn more: EMI for a Used Car Loan: What Changes vs a New Car Loan

FAQ

What affects my EMI amount? Three things: loan amount, interest rate, and tenure. A longer tenure lowers the monthly EMI but increases total interest paid.

What’s the difference between fixed and floating interest rates? A fixed rate keeps your EMI constant for the loan term. A floating rate moves with market benchmarks, so your EMI can rise or fall periodically.

Does prepaying a loan reduce my EMI? It depends on the lender. Some reduce the EMI while keeping tenure the same; others keep the EMI the same and shorten the tenure instead. Check with your lender.

Is EMI the same as the total loan cost? No — EMI × number of installments gives you the total repayment, which includes both principal and interest, so it’s higher than the amount borrowed.