How to use the Loan EMI Calculator
- Enter the amount you want to borrow.
- Enter the yearly interest rate (APR) your lender quotes.
- Enter the loan term in years or months.
- Read your monthly payment, total interest and total cost, then scroll the schedule to see each year.
Formula used
P = principal, r = annual rate ÷ 12 ÷ 100, n = number of monthly payments. At 0%, EMI = P ÷ n.
Total interest = EMI × n − PWorked examples
| Loan | Rate | Term | Monthly payment | Total interest |
|---|---|---|---|---|
| $25,000 car loan | 7% | 5 years | $495 | $4,702 |
| £10,000 personal loan | 6.9% | 3 years | £308 | £1,099 |
| ₹10,00,000 | 12% | 5 years | ₹22,244 | ₹3,34,667 |
| ₹5,00,000 | 10.5% | 3 years | ₹16,251 | ₹85,044 |
How to pay less interest
- Shorten the term. A higher payment for fewer months cuts total interest sharply.
- Prepay when you can. Extra payments reduce the balance, so later payments carry less interest. Check for prepayment fees first.
- Compare APR, which includes fees, not just the headline rate.
- Keep total loan payments below about 35% to 40% of take-home pay.
Buying a home? Use the Mortgage Calculator for taxes and insurance. Saving instead? See growth with the Compound Interest Calculator.
Frequently asked questions
What is EMI?
Equated monthly installment: the fixed amount you pay each month until the loan is repaid. Each EMI covers that month's interest plus part of the principal.
Why is most of my early payment interest?
Interest is charged on the outstanding balance, which is highest at the start. As you repay, the interest share falls.
How do I calculate EMI in Excel?
Use =PMT(rate/12, months, -loan). For example =PMT(7%/12, 60, -25000) returns about 495.
Is a flat rate the same as a reducing rate?
No. A flat rate charges interest on the original amount for the whole term, so it costs more. This calculator uses the reducing balance method banks use.
Can I change the currency?
Yes. Use the currency switch at the top of the page to show $, £, ₹ or €.
Our team builds and tests every tool by hand, checks each formula against official sources (IRS, HMRC, the Income Tax Department of India, CBSE, NHS, WHO) and reviews pages whenever rules change. Last reviewed on . Spotted a mistake? Tell us.