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EMI Calculator

EMI Calculator — Toolriz

EMI Calculator

Calculate loan EMI, total interest, amortization schedule, prepayment savings & more

Enter loan amount, interest rate, and tenure to calculate your monthly EMI, total interest payable, and full amortization schedule.
$
$10K$10M
% p.a.
1%36%
Months
3 Mo30 Yr
Include Processing Fee
Know how much you can borrow? Enter the EMI you can afford, interest rate, and tenure to find the maximum loan amount.
$
% p.a.
Mo
Know the loan amount and what EMI you can afford? Find the exact tenure (months) needed to repay the loan.
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% p.a.
$
Calculate how much interest and time you save by making a lump-sum prepayment on your existing loan.
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% p.a.
Mo
EMIs
$
Compare up to 3 loan offers side by side. See which loan costs less in total interest.
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%
Mo
$
%
Mo
$
%
Mo
Find out the maximum home/car loan you can afford based on your monthly income and existing EMIs.
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$
% p.a.
Mo
%
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Monthly EMI
Detailed Breakdown

About the EMI Calculator

This advanced EMI calculator covers all six loan calculation scenarios — computing your monthly EMI, finding the maximum loan you can afford, determining the right tenure, calculating prepayment savings, comparing multiple loan offers, and checking your loan eligibility based on income.

  • Full amortization schedule — monthly or yearly summary — showing principal, interest, and balance for every period.
  • Visual donut chart and year-wise bar chart for instant understanding of your loan cost.
  • Interactive sliders for loan amount, interest rate, and tenure with live sync.
  • Prepayment calculator shows exact interest saved and months cut from your tenure.
  • Compare up to 3 loan offers side-by-side with best/worst highlighting.
  • Processing fee and GST included in true cost calculation.

How EMI is Calculated

Quick Answer

EMI (Equated Monthly Instalment) is calculated using the formula: EMI = P × r × (1+r)ⁿ ÷ [(1+r)ⁿ − 1], where P is the principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the number of months.

Every EMI payment has two components — principal repayment and interest charge. In early months, a larger portion goes toward interest. As the loan matures, the principal portion increases and interest decreases. This is called an amortizing loan.

EMI Formula Explained

Standard EMI Formula
EMI = P × r × (1 + r)ⁿ ÷ [(1 + r)ⁿ − 1]

Where:
P = Principal loan amount
r = Monthly interest rate = Annual Rate ÷ 12 ÷ 100
n = Number of monthly instalments (tenure in months)

Example: Loan of $500,000 at 12% p.a. for 36 months → r = 12 ÷ 12 ÷ 100 = 0.01 → EMI = 500,000 × 0.01 × (1.01)³⁶ ÷ [(1.01)³⁶ − 1] = $16,607 per month.

Frequently Asked Questions

EMI stands for Equated Monthly Instalment — a fixed amount you pay to a bank or lender every month until the loan is fully repaid. Each payment covers both the interest for that month and a portion of the remaining principal. Over time, the interest portion decreases and principal portion increases, though the total monthly payment stays the same.
Yes — a longer tenure reduces your monthly EMI because the loan is spread over more payments. However, you end up paying significantly more total interest. A shorter tenure means a higher EMI but much lower total interest cost. The right balance depends on your monthly cash flow and financial goals.
Prepayment means paying an extra lump sum toward your loan principal before the scheduled tenure ends. Since the outstanding balance reduces, future interest calculations are on a lower amount — saving you substantial interest and cutting months off your tenure. Even a single prepayment in the early years of a long loan can save thousands of dollars in interest.
In the U.S., this is commonly called your debt-to-income (DTI) ratio. Most lenders prefer your total monthly debt payments — including the new loan — to stay below 36–43% of your gross monthly income, though some loan programs (like FHA) allow higher limits. Keeping your DTI at or below 36% gives you a comfortable financial buffer for living expenses, savings, and emergencies.
A flat rate charges interest on the original loan amount for the entire tenure — making the effective interest rate much higher than it appears. A reducing balance (diminishing balance) rate charges interest only on the remaining principal each month — this is the standard method used by banks for home loans, car loans, and personal loans. This calculator uses the reducing balance method.

About This Tool & Editorial Standards

Toolriz Calculators Team
Content reviewed for accuracy of EMI and loan amortization formulas
Last updated: June 2026

This EMI calculator uses the standard reducing balance amortization formula as used by banks. Results are for informational purposes only and may differ slightly from bank statements due to rounding, payment dates, and bank-specific calculation methods. Always confirm final figures with your lender.

Sources & Further Reading

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