Enter the loan amount, annual interest rate and term to get the equated monthly installment (EMI), total interest, total amount payable and a yearly or monthly amortization schedule showing how each payment splits between interest and principal.
How to calculate EMI
- Enter the loan amount.
- Enter the annual interest rate and the term in years or months.
- Read the monthly payment and check the schedule.
EMI formula
EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly payments.
Reducing the interest you pay
- A shorter term means higher installments but much less total interest.
- Part-prepayments early in the loan save the most interest, because early installments are mostly interest.
- Compare the annual percentage rate (APR) including fees, not just the headline rate.
Islamic financing
Islamic car and home financing (for example Ijarah or Diminishing Musharakah) uses rent or profit rates instead of interest, but the monthly payment is often calculated in a similar way. Ask your bank for its exact payment schedule.
Frequently asked questions
What does EMI stand for?
Equated Monthly Installment: a fixed monthly payment that covers interest and part of the principal.
Does this include insurance or processing fees?
No. Add those separately; they are not part of the EMI formula.
Is the rate flat or reducing?
This calculator uses the standard reducing-balance method, where interest is charged on the outstanding balance.
Updated October 2026 · Built and tested by Sharjeel Tahir · How our tools are tested