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Loan EMI Calculator
Break down a loan's monthly EMI, total interest paid, and total amount payable over its full tenure.
Loan EMI calculator
Break down a loan's monthly EMI, total interest, and total payable amount.
What is a Loan EMI?
An EMI (Equated Monthly Installment) is the fixed monthly payment a borrower makes to repay a loan, covering both principal and interest, over an agreed tenure. This calculator computes the EMI for a given loan amount, tenure, and interest rate, and shows the full cost of the loan, not just the monthly figure.
How is it calculated?
Why use this calculator
- Shows the true total cost of a loan, not just the monthly number
- Makes it easy to compare loan offers at different rates or tenures side by side
- Useful for checking loan affordability against a client's monthly surplus before they commit
Who should use it
Anyone evaluating a home, car, or personal loan, and advisors helping a client decide how a new EMI fits into their broader financial plan.
Frequently asked questions
Does a longer tenure always mean a cheaper loan?
It lowers the monthly EMI, but increases the total interest paid over the life of the loan. This calculator's breakdown makes that trade-off explicit.
What's the difference between reducing balance and fixed interest?
Reducing balance charges interest only on the outstanding principal, which falls each month: this is how nearly all mainstream loans work. Fixed interest charges the same rate on the full original principal for the entire tenure, which typically works out more expensive; it’s included here mainly for comparison.
Should I prepay a loan if I can?
Prepaying reduces the outstanding principal, which lowers future interest: often worth it for high-interest loans, less so for very low-interest ones where the money might earn more invested elsewhere. That trade-off is a separate decision from what this calculator shows.