Loan EMI (Monthly Payment) Calculator
Calculate the monthly payment, total interest and total cost of any loan.
Quick answer: EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1), where P is the loan amount, r the monthly rate and n the number of months.
Worked example
You borrow 250,000 at 7.5% a year for 20 years. The monthly payment (EMI) comes to 2,013.98. Over 240 months you repay 483,355.92 in total, so 233,355.92 of that is interest, almost as much as the loan itself.
How to use it
- Enter the amount you plan to borrow, after any down payment.
- Enter the yearly interest rate the lender quotes. Use the rate, not the "APR with fees", unless you want fees included.
- Enter the term in years. The result updates as you type, so try a few terms side by side.
How term and rate change the same 250,000 loan
| Rate | Term | Monthly payment | Total interest |
|---|---|---|---|
| 7.5% | 30 years | 1,748.04 | 379,293.06 |
| 7.5% | 20 years | 2,013.98 | 233,355.92 |
| 7.5% | 15 years | 2,317.53 | 167,155.56 |
| 6.5% | 20 years | 1,863.93 | 197,343.88 |
Common mistakes
- Looking only at the monthly payment. A longer term lowers the payment but can add tens of thousands in interest.
- Forgetting fees, insurance and taxes. The EMI covers only the loan repayment.
- Comparing a fixed rate with a variable rate as if they were the same. A variable rate can change your payment later.
Helpful tips
- A larger down payment cuts both the EMI and the total interest.
- Even a 1 percentage point lower rate saves far more than most people expect over 20 years.
- If your lender allows it without penalty, extra payments early in the loan save the most interest.
Read the guide
Frequently asked questions
What is an EMI?
An equated monthly instalment is the fixed amount you pay each month to repay a loan with interest.
How can I lower my EMI?
Choose a longer term, make a larger down payment, or find a lower interest rate.
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Percentage CalculatorPercentage Change CalculatorDiscount CalculatorTip CalculatorCompound Interest Calculator
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