Find your monthly payment (EMI) for a home, car or personal loan, see how much interest you will pay in total, and how much time and money an extra payment each month saves you.
The monthly payment of a loan with a fixed interest rate is worked out with the standard EMI formula:
EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1)
P = the loan amount, r = the monthly interest rate (yearly rate ÷ 12 ÷ 100), n = the number of monthly payments.
For example, a loan of 200,000 at 9% a year for 20 years (240 payments) has a monthly rate of 0.75%. The EMI is about 1,799. Over 20 years you pay about 431,900 in total, so the loan costs about 231,900 in interest, more than the amount borrowed.
The same 200,000 at 9% over 10 years has a higher EMI (about 2,534) but the total interest falls to about 104,000, less than half.
Even a small extra amount each month makes a big difference, because it lowers the balance that interest is charged on. In the example above, paying 200 extra every month ends the loan years earlier and saves tens of thousands in interest. Try it in the calculator.
Compare offers from different lenders before you sign, and ask whether you can refinance later if rates fall. One percentage point less on a long loan saves a lot.
EMI stands for Equated Monthly Instalment: the same amount you pay every month until the loan is paid off. Each payment covers that month's interest and pays back part of the loan.
Interest is charged on what you still owe. At the start you owe the most, so the interest part is biggest. As the balance goes down, more of each payment goes to the loan itself.
Every extra amount goes straight to the loan balance, so you pay interest on a smaller amount from then on. Enter an extra monthly payment to see how many months earlier you finish and how much interest you save.
It is a close estimate using the standard EMI formula with a fixed rate. Banks may add fees, insurance or use a slightly different way of counting days, so check the final figures in your loan offer.
Yes. Choose your currency at the top. The calculation is the same everywhere.
A calculator gives you one answer. A cashbook shows you the whole picture: write down cash in and cash out, see where the money goes in charts and on a calendar, and share a ledger with your family, team or friends.
This takes a few seconds.
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