How to use the EMI calculator
- Enter the loan amount you plan to borrow, in US dollars.
- Enter the annual interest rate quoted by your lender, as a percentage.
- Enter the loan term in years (for example, 15 for a 15-year mortgage).
- Press "Calculate EMI". The monthly payment, total interest and total payment appear below instantly.
What is EMI and how is it calculated
EMI stands for Equated Monthly Installment. It is the fixed amount you pay a lender every month until a loan is fully repaid. Each payment covers a portion of the interest and a portion of the principal, so that by the final month the balance reaches exactly zero.
The standard formula lenders use is EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan principal, r is the monthly interest rate (annual rate divided by 12, then divided by 100), and n is the number of monthly payments. Because the formula compounds the rate over the full term, small differences in the quoted rate can change the monthly payment noticeably.
How the figures break down
| Figure | What it tells you |
|---|---|
| Monthly EMI | The fixed amount due each month for the entire term. |
| Total interest | The extra you pay the lender on top of the principal. |
| Total payment | Principal plus interest — the full cost of the loan. |
Ways to reduce your total cost
The total interest you pay is driven by three things: how much you borrow, the rate, and how long you take to repay. A shorter term raises the monthly payment but sharply cuts total interest. A larger down payment reduces the principal. Comparing rates between lenders, even by half a percentage point, can save thousands over a long term. Run a few scenarios here before you commit so you know exactly what a loan will cost.