How to Calculate Loan EMI and Total Interest Before You Borrow

Before you take a home, car or personal loan, you should know exactly what you will pay each month and in total. The monthly instalment, called EMI (Equated Monthly Instalment), depends on three things: the amount you borrow, the interest rate and the loan period.

How to calculate your EMI

1. Open the EMI Calculator.
2. Enter the loan amount.
3. Enter the yearly interest rate.
4. Enter the loan period.
5. See your monthly EMI, the total interest and the total amount you will repay.

Try it now: EMI Calculator is free, works in your browser and needs no signup.

The EMI formula

EMI = P × r × (1 + r)ⁿ / ((1 + r)ⁿ − 1)

• P is the loan amount (principal).
• r is the monthly interest rate (yearly rate ÷ 12 ÷ 100).
• n is the number of monthly instalments.

The calculator does this for you, but knowing the formula helps you understand why small changes matter.

What changes your EMI the most?

Loan period

A longer period lowers your monthly EMI but increases the total interest you pay, often by a lot. A shorter period costs more each month but saves money overall.

Interest rate

Even a 1% difference in rate makes a large difference over a long home loan. Always compare offers from several lenders.

Loan amount

A bigger down payment means a smaller loan, a lower EMI and less interest.

Tips before you borrow

• Try several periods in the calculator and compare the total interest.
• Ask lenders about processing fees, insurance and prepayment charges, which are not part of the EMI.
• Many people try to keep total EMIs to a manageable share of their monthly income.

This article is general information, not financial advice. Check the final terms with your lender.

Try it now: EMI Calculator is free, works in your browser and needs no signup.