Loan EMI Calculator
Monthly instalment (EMI)
18.8% interest$5,129.13for 60 months
- Total interest
- $57,747.97
- Total paid
- $307,747.97
Show how it’s worked outHide working
250,000 × 0.007083 × (1 + 0.007083)^60 ÷ ((1 + 0.007083)^60 − 1) = 5,129.13. The monthly rate is 8.5% ÷ 12. Early instalments are mostly interest; later ones mostly principal.
About Loan EMI
An equated monthly instalment (EMI) is the fixed amount you pay each month on a loan so that the whole balance, plus interest, is cleared by the end of the term. The payment stays the same, but its make-up changes: early on most of it is interest, and by the end almost all of it is principal.
Formula: EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1), where P is the amount borrowed, r is the monthly rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly payments. At 0% the EMI is simply P ÷ n.
The amortisation table shows how much of each year's payments went to principal versus interest. A longer term lowers the monthly amount but raises total interest; paying a little extra early in the loan removes far more interest than the same amount paid near the end.
Common questions
- What is an EMI?
- An equated monthly instalment is the fixed amount you pay each month on a loan. Early payments are mostly interest; later ones are mostly principal, but the total stays the same.
- How is EMI calculated?
- EMI = P x r x (1 + r)^n / ((1 + r)^n - 1), where P is the principal, r is the monthly interest rate (annual rate / 12 / 100) and n is the number of months.
- How can I reduce my EMI?
- A longer term lowers the monthly amount but increases total interest. A lower rate or a larger down payment reduces both.
Amortisation by year
| Year | Principal | Interest | Balance |
|---|---|---|---|
| 1 | 41,907.27 | 19,642.33 | 208,092.73 |
| 2 | 45,611.49 | 15,938.11 | 162,481.25 |
| 3 | 49,643.13 | 11,906.47 | 112,838.12 |
| 4 | 54,031.13 | 7,518.46 | 58,806.99 |
| 5 | 58,806.99 | 2,742.60 | 0.00 |