MyCalculatorHow EMI is calculated
EMI uses the standard reducing-balance formula: EMI = P × r × (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 monthly installments. If the interest rate is 0%, EMI is simply the principal divided by the number of months.
Example
A loan of 500,000 at 9.5% annual interest over 5 years (60 months) gives a monthly EMI of roughly 10,495, total repayment of about 629,700, and total interest of about 129,700.
Assumptions & limitations
This calculator assumes a fixed interest rate and equal monthly installments, which is standard for most personal, auto and home loans. It does not include processing fees, insurance, prepayment penalties or taxes, which vary by lender and country.
Frequently asked questions
What does EMI stand for?
Equated Monthly Installment — a fixed payment made each month to repay a loan, covering both principal and interest.
Does this work for any currency?
Yes. Select your currency and enter your own figures; the formula is currency-independent.
Why does the interest portion change each month?
Interest is calculated on the outstanding balance, which falls with every payment, so the interest portion of each EMI shrinks over time while the principal portion grows.