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Enter your loan amount, annual interest rate, and repayment period to instantly calculate your monthly EMI, total payment, and full year-by-year amortisation schedule.
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Total Interest
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Annual Amortisation Schedule
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Free Loan EMI Calculator – Work Out Your Monthly Repayments Before You Borrow
Taking out a loan is a significant financial commitment, and understanding exactly what you are signing up for before you sign anything is essential. Knowing your monthly repayment amount, the total you will pay back, and how much of that is interest gives you the clarity to borrow purposefully and budget accurately. This free online loan EMI calculator lets you model any loan in seconds. Enter the principal, the annual interest rate, and the repayment term, and get an instant breakdown of your monthly installment, total repayment amount, and total interest cost over the life of the loan.
What Is an EMI?
EMI stands for Equated Monthly Instalment — the fixed amount you pay each month to repay a loan. Each payment is made up of two components: a portion that reduces the outstanding principal (the amount you originally borrowed) and a portion that covers the interest charged by the lender for that period. In the early months of a loan, the split strongly favors interest. As the outstanding balance decreases over time, progressively more of each payment goes toward reducing the principal. Despite the split changing every month, the total EMI amount stays exactly the same throughout the loan term.
This mechanism is called loan amortization, and it is how virtually every personal loan, mortgage, car loan, and student loan works.
How the EMI Formula Works
The standard amortization formula used for this calculation is:
EMI = P × r × (1 + r)ⁿ / ((1 + r)ⁿ − 1)
Where P is the loan principal, r is the monthly interest rate (annual rate divided by 12), and n is the total number of monthly payments. You do not need to apply this yourself — just enter your numbers into the calculator and get the result instantly.
How to Use the Loan EMI Calculator
- Enter the loan amount (principal) you want to borrow.
- Enter the annual interest rate as a percentage.
- Enter the loan tenure in months or years.
- Get your monthly EMI, total repayment amount, and total interest paid displayed immediately.
Loan Types This Calculator Works For
- Personal loans — Unsecured borrowing for home renovation, travel, medical expenses, wedding costs, or debt consolidation
- Home loans and mortgages — Large, long-term secured loans against property
- Car and vehicle loans — Hire purchase or personal contract purchase financing
- Education and student loans — Financing for tuition fees and living expenses
- Business loans — Short or medium-term financing for capital investment or working capital
Understanding the True Cost of Borrowing
The interest rate alone does not tell you the full story. A loan with a lower rate but a longer repayment term can cost significantly more in total interest than a slightly higher-rate loan repaid more quickly. This calculator shows you the full interest figure so you can compare options on a like-for-like basis.
For example: a loan of ₹5,00,000 at 12% per year over 5 years results in a monthly EMI of approximately ₹11,122 and total interest of roughly ₹1,67,350. The same loan over 3 years has a higher monthly EMI of around ₹16,607 but total interest of only about ₹97,846 — a saving of nearly ₹70,000. Choosing a shorter term always costs less overall, as long as the higher monthly payment fits your budget.
Tips for Reducing Your Loan Cost
- Choose the shortest repayment term you can comfortably afford — the interest saving is often substantial
- Make part-prepayments whenever you have surplus funds to reduce the outstanding principal and interest faster
- Compare offers from multiple lenders rather than accepting the first rate you are offered
- Check for processing fees, prepayment penalties, and other charges that affect the true cost of the loan
- Maintain a strong credit score for access to the most competitive interest rates
- Avoid rolling credit card debt into long personal loan terms — it reduces monthly payments but increases total interest significantly
Use this calculator to model different combinations of loan amount, rate, and tenure before making any borrowing decision. A few minutes of comparison here can save you a meaningful amount over the entire life of a loan.