EMI / Loan Calculator
Calculate your monthly EMI, total interest, and total repayment for any loan — home loan, car loan, personal loan, or mortgage.
Monthly EMI
$2,326
Total Interest
$258,215
Total Payment
$558,215
How EMI is calculated
EMI (Equated Monthly Instalment) is computed using the reducing balance method:
- P — Principal loan amount
- r — Monthly interest rate (annual rate ÷ 12 ÷ 100)
- n — Loan tenure in months
Tenure vs total interest
A longer loan tenure reduces your monthly EMI but significantly increases the total interest paid over the life of the loan. For a ₹50 lakh home loan at 8.5%:
| Tenure | Monthly EMI | Total Interest |
|---|---|---|
| 10 years | ₹61,993 | ₹24.4 lakh |
| 20 years | ₹43,391 | ₹54.1 lakh |
| 30 years | ₹38,446 | ₹88.4 lakh |
The 30-year borrower pays ₹64 lakh more in interest than the 10-year borrower — despite a lower monthly payment.
Tips to reduce total interest
- →Make part-prepayments whenever you have surplus cash — they reduce outstanding principal and cut future interest
- →Choose the shortest tenure your budget allows — lower monthly payments cost more in the long run
- →A 0.5% lower interest rate on a ₹50 lakh loan can save ₹5–10 lakh over 20 years — negotiate hard on rate
- →A larger down payment reduces principal, which reduces both EMI and total interest
Frequently asked questions
What is EMI?
EMI (Equated Monthly Instalment) is the fixed monthly payment you make to repay a loan. It includes both principal and interest, calculated so the loan is fully paid off by the end of the term.
How is EMI calculated?
EMI = [P × r × (1+r)^n] / [(1+r)^n - 1], where P is the principal loan amount, r is the monthly interest rate (annual rate ÷ 12), and n is the number of monthly instalments.
What factors affect my EMI?
Three factors determine your EMI: loan amount (principal), interest rate, and loan tenure (number of months). A larger loan, higher rate, or shorter tenure increases EMI. A longer tenure reduces monthly EMI but increases total interest paid.
How can I reduce my EMI?
You can reduce EMI by making a larger down payment (reducing principal), negotiating a lower interest rate, extending the loan tenure, or making part-prepayments to reduce outstanding principal.
Track how this loan fits your net worth
TrackWorth lets you add this loan as a liability and track how your debt-to-asset ratio changes as you pay it down — alongside all your assets and savings.
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