# EMI Calculator

> Calculate your monthly loan EMI, total interest and the savings from monthly prepayments.

Page: https://freecalculator.tech/tools/emi-calculator
Last reviewed: 2026-11-12

## Formula

EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P = loan amount, r = annual rate ÷ 12 ÷ 100 and n = tenure in months. With r = 0, EMI = P ÷ n.

- Prepayment is modelled as the same extra amount paid every month on top of the EMI, reducing the balance and shortening the tenure.
- EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P = loan amount, r = annual rate ÷ 12 ÷ 100 and n = tenure in months. With r = 0, EMI = P ÷ n.
- Inputs used: Loan amount, Annual interest rate, Loan tenure, Tenure in, Extra prepayment each month (optional), Currency (symbol only, never converted).

## Inputs

- Loan amount
- Annual interest rate
- Loan tenure
- Tenure in
- Extra prepayment each month (optional)
- Currency (symbol only, never converted)

## Worked example: ₹10,00,000 at 9% for 60 months

EMI ≈ ₹20,758.36; total interest ≈ ₹2,45,501.
1. r = 9 ÷ 12 ÷ 100 = 0.0075; n = 60.
2. (1.0075)^60 ≈ 1.565681.
3. EMI = 10,00,000 × 0.0075 × 1.565681 ÷ 0.565681 ≈ ₹20,758.36.
4. Total interest = 20,758.36 × 60 − 10,00,000 ≈ ₹2,45,501.

## Common questions

### What does EMI stand for?

Equated Monthly Instalment — a fixed monthly payment that covers interest and part of the principal.

### Which interest rate should I enter?

The annual rate your bank or lender quotes for your loan. Rates differ by lender, country and credit profile, so none is preset.

### How much does prepaying save?

Enter an extra monthly amount to see the shorter tenure and the interest saved. Check whether your lender charges a prepayment fee.

### Is this a flat-rate or reducing-balance EMI?

Reducing balance — interest is charged on the outstanding amount each month, as most home, car and personal loans do.

### What is the EMI formula?

EMI = P × r × (1 + r)^N ÷ ((1 + r)^N − 1), where P is the loan amount, r the monthly rate (annual rate ÷ 12 ÷ 100) and N the number of months. Your bank's quoted rate goes in as an input.

### How do I use the EMI Calculator?

Enter the required values for Loan amount, Annual interest rate, Loan tenure, Tenure in, Extra prepayment each month (optional), and the other fields shown. The calculator applies the formula on this page and shows the main result with any supporting breakdown so you can check the arithmetic.

## Limitations and assumptions

- Assumes a fixed rate for the whole tenure.
- Processing fees, insurance and prepayment charges are not included.
- Flat-rate loans are calculated differently.
- An estimate from the figures you enter. Lenders may charge processing fees, insurance or prepayment charges, and floating rates change over time. Not financial advice.
- The result depends on the values you enter for this emi calculator; it does not supply missing rates, rules, prices, dates, or assumptions for you.

## Sources

- OpenStax — https://openstax.org/books/principles-finance/pages/7-6-loan-amortization

## Cite this page

- APA: Free Calculator. (2026, November 12). EMI Calculator. https://freecalculator.tech/tools/emi-calculator
- MLA: "EMI Calculator." Free Calculator, 12 Nov. 2026, https://freecalculator.tech/tools/emi-calculator.
- Link: EMI Calculator — Free Calculator, https://freecalculator.tech/tools/emi-calculator