Loan EMI calculator
EMI (equated monthly instalment) is the fixed amount you repay each month on a standard reducing-balance loan. Enter the loan amount, the yearly interest rate and the term.
Results are estimates for information only, not financial or tax advice.
How it works
Formula
This assumes a fixed rate and a reducing-balance loan, which is how most personal, car and home loans work. Flat-rate loans charge more interest; ask your lender which method they use.
Worked example
- Loan 100,000 at 8% a year for 5 years
- r = 8 ÷ 12 ÷ 100 = 0.006667, n = 60
- EMI ≈ 2,027.64 per month
- Total repayment ≈ 121,658.37, so total interest ≈ 21,658.37
Frequently asked questions
Does a longer term save money?
It lowers the monthly payment but raises the total interest. The same 100,000 at 8% costs about 21,658 in interest over 5 years, but roughly 45,600 over 10 years.
What is the difference between a flat rate and a reducing rate?
A flat rate charges interest on the full original amount for the whole term. A reducing rate charges interest only on what you still owe. A flat rate of 5% usually costs about the same as a reducing rate of roughly 9%, so always compare like with like.
Are fees included?
No. Processing fees, insurance and other charges are extra. Check the annual percentage rate (APR) in your loan offer for the full cost.