Loan / EMI Calculator
Calculate monthly loan payments and interest
Monthly EMI
$313.36
Total Payment
$11,281.09
Total Interest
$1,281.09
Quick Facts
- •Higher down payment = lower EMI
- •Shorter term = higher EMI but less total interest
- •Even 0.5% rate difference significantly affects total cost
Understanding EMI
EMI (Equated Monthly Installment) is the fixed monthly payment you make on a loan. It includes both principal repayment and interest. The EMI formula is: EMI = P × r × (1+r)^n / ((1+r)^n - 1), where P is principal, r is monthly interest rate, and n is number of months.
Understanding the loan / emi calculator
An equated monthly instalment keeps the payment constant while the interest and principal split shifts over time. The same formula covers car loans, personal loans, and home loans, and the same lesson applies: the term you choose usually costs more than the rate you negotiate.
Worked examples
EMI on a 25,000 car loan at 8 percent over 5 years
- 1Monthly rate = 0.08 ÷ 12 = 0.0066667, n = 60.
- 2(1 + r)^n = 1.48985.
- 3EMI = P × r × (1 + r)^n ÷ ((1 + r)^n - 1).
- 425,000 × 0.0066667 × 1.48985 = 248.31.
- 5Divide by 0.48985: 248.31 ÷ 0.48985 = 506.91.
About 506.91 per month, with 5,415 of total interest.
Same loan stretched to 7 years
- 1n becomes 84, so the EMI falls to about 389.60.
- 2Total repaid = 389.60 × 84 = 32,726.
- 3Total interest rises from 5,415 to 7,726.
A 117 lower payment costs an extra 2,311 in interest.
Monthly payment per 10,000 borrowed
| Rate | 3 years | 5 years | 7 years |
|---|---|---|---|
| 5% | 299.71 | 188.71 | 141.34 |
| 7% | 308.77 | 198.01 | 150.93 |
| 9% | 318.00 | 207.58 | 160.89 |
| 11% | 327.39 | 217.42 | 171.21 |
| 13% | 336.94 | 227.53 | 181.90 |
| 15% | 346.65 | 237.90 | 192.95 |
Frequently asked questions
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This calculator is for educational and reference purposes only. Always verify critical calculations independently.