Loan EMI Calculator

Calculate your exact monthly payments, total interest cost, and view a complete amortization schedule with visual charts.

Currency:

Loan Amount$300,000

$5,000$2,500,000$5,000,000

Interest Rate (% P.A.)7%

1%12%25%

Loan Tenure (Years)30 Years (360 Months)

1 Year15 Years30 Years

Monthly Loan Payment

$1,996 / month

Total Pay$718,560

Principal: 42%

Interest: 58%

Principal Amount:$300,000

Total Interest:$418,560

How Does the Loan EMI Calculation Work?

When taking out a loan, lenders use an amortized repayment schedule. Rather than paying off the interest upfront, your payments are divided into identical monthly chunks called Equated Monthly Installments (EMIs).

The Mathematical Formula

EMI = [P × R × (1 + R)^N] / [(1 + R)^N - 1]

P (Principal): The initial borrowing amount.
R (Monthly Rate): Annual interest rate divided by 12 and by 100.
N (Tenure): Total number of monthly installments.

Frequently Asked Questions

An EMI is a fixed payment amount made by a borrower to a lender at a specified calendar date each month. Each EMI is divided into repayment of the principal amount and payment towards the accrued interest on the outstanding loan balance.