Loan EMI Calculator
Calculate your Equated Monthly Installment (EMI) and see a complete breakdown of your loan payments.
Loan Details
Enter your loan information
$
%
EMI Results
Your loan payment breakdown
Monthly Payment (EMI):
$659.96
Total Payment:
$158,390.40
Total Interest:
$58,390.40
Payment Breakdown
Amortization Schedule
Principal Amount:
$100,000.00
Interest Amount:
$58,390.40
Loan Paid Off Date:
March 2043
| Payment # | Date | Payment | Principal | Interest | Balance |
|---|
Understanding Loan EMI Calculations
EMI stands for Equated Monthly Installment. It’s the fixed amount you pay each month toward your loan until it’s fully paid off. Each EMI payment includes both principal repayment and interest payment.
How EMI is Calculated
The EMI formula is:
EMI = P × r × (1 + r)^n / ((1 + r)^n – 1)
Where:
- P = Principal loan amount
- r = Monthly interest rate (annual rate ÷ 12 ÷ 100)
- n = Total number of monthly payments (years × 12)
Factors Affecting Your EMI
- Loan Amount – Higher loan amounts result in higher EMIs
- Interest Rate – Higher interest rates increase your EMI
- Loan Term – Longer loan terms reduce your EMI but increase total interest paid
Tips for Managing Your Loan
- Make extra payments when possible to reduce the principal faster
- Consider refinancing if interest rates drop significantly
- Choose the right loan term – balance affordable monthly payments with minimizing total interest
- Compare loan offers from multiple lenders to get the best interest rate
- Maintain a good credit score to qualify for lower interest rates
Frequently Asked Questions
What happens if I make extra payments?
Making extra payments reduces your principal balance faster, which means you’ll pay less interest over the life of the loan and potentially pay off your loan earlier.
Should I choose a shorter or longer loan term?
A shorter loan term means higher monthly payments but less total interest paid. A longer term gives you lower monthly payments but costs more in interest over time. Choose based on your cash flow needs and financial goals.
How can I reduce my EMI?
You can reduce your EMI by extending your loan term, finding a loan with a lower interest rate, making a larger down payment to reduce the principal, or refinancing your existing loan.
