EMI Calculator
Work out the fixed monthly payment (EMI) on any loan, how much interest you will pay in total, and when your payments start repaying more principal than interest.
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EMI Calculator by TheCalcTools
How the EMI Calculator works
Enter how much you are borrowing, the yearly interest rate and the length of the loan. The calculator converts the yearly rate into a monthly rate, then finds the single fixed payment that clears the loan exactly by the last month.
Each month the lender charges interest on the balance you still owe, and the rest of your payment reduces that balance. Early on the balance is large, so most of the payment is interest. As the balance shrinks, more of each payment goes to principal. The “principal exceeds interest” result shows the month where that flips.
The formula
Worked example
A $250,000 loan at 6.5% a year over 15 years (180 monthly payments):
| Loan amount | $250,000 |
|---|---|
| Interest rate | 6.5% per year |
| Term | 15 years (180 months) |
- Monthly rate r = 6.5% ÷ 12 = 0.5417%.
- EMI = 250,000 × r × (1 + r)180 ÷ ((1 + r)180 − 1) = $2,177.77.
- Total paid = $2,177.77 × 180 = $391,998.31.
- Interest = $391,998.31 − $250,000 = $141,998.31.
Result:
| Monthly EMI | $2,177.77 |
|---|---|
| Total of all payments | $391,998.31 |
| Total interest | $141,998.31 |
| Principal exceeds interest from | Payment #53 |
Frequently asked questions
What does EMI mean?
EMI stands for equated monthly instalment: the fixed amount you pay every month to repay a loan. Each EMI covers that month’s interest plus part of the loan itself.
Why is most of my early EMI interest?
Interest is charged on the balance you still owe. At the start the balance is at its largest, so the interest share is largest too. Each payment lowers the balance, so the interest share falls and the principal share grows.
How can I lower the total interest?
A shorter term, a larger down payment or extra payments towards principal all cut total interest. A longer term lowers the EMI but increases the interest. Check whether your lender charges a fee for early repayment. You can test extra payments in the loan amortization calculator.
Is an EMI the same as a mortgage payment?
Not always. An EMI covers only the loan. A mortgage payment in the US often also includes property tax and insurance. Use the mortgage payment estimator if you want those included.
Does this include processing fees or insurance?
No. Add them separately. Fees and insurance change the real cost of borrowing, and the APR of a loan includes some of them. See the APR calculator.
Sources and further reading
- Wikipedia: Amortization calculator
- Consumer Financial Protection Bureau: Auto loans (interest rates and loan terms)
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This calculator gives estimates for information only. It is not financial advice, and your lender's or provider's figures will govern. Rates, fees and rules vary. See our disclaimer.