Loan Calculator
Calculate your monthly payment, total interest, and total cost for any loan.
Frequently Asked Questions
What is an EMI?
EMI stands for Equated Monthly Installment. It is the fixed amount you pay every month to repay a loan over a set period. Each EMI payment covers both a portion of the principal (the original loan amount) and the interest accrued for that month. Over time, the principal portion increases while the interest portion decreases.
How is the monthly loan payment calculated?
The standard EMI formula is: 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. For a 0% interest loan, EMI simply equals P ÷ n.
What happens if I pay extra each month?
Paying extra each month reduces your principal faster, which means less interest accrues over time. This shortens the loan term and can save you a significant amount in total interest. Even a small additional payment each month can make a substantial difference over the life of a long-term loan like a mortgage.