How to use the Loan / EMI Calculator
- Enter the loan amount, yearly interest rate and loan period.
- See your monthly installment, total interest and total payment.
- Open the schedule to see how each payment splits between interest and principal.
About this tool
EMI stands for Equated Monthly Installment — the same payment every month until the loan is paid off. Early payments are mostly interest; later payments are mostly principal. Banks may add processing fees, insurance or taxes, so treat this as an estimate and confirm the final figures with your lender.
Frequently asked questions
How is EMI calculated?
EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), where P is the loan amount, r is the monthly interest rate and n is the number of months.
Does this work for Islamic financing?
Islamic car and home financing uses rental or profit rates instead of interest, but the monthly figure is often worked out the same way. Ask your bank for its exact method.
How can I lower my EMI?
A larger down payment, a lower rate or a longer period all reduce the EMI — though a longer period usually means paying more in total.