How to calculate the EMI on a home, car or personal loan
Quick answer
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r the monthly interest rate (annual rate ÷ 12 ÷ 100) and n the number of months. A ₹5,00,000 loan at 9.5% for 20 years comes to about ₹4,661 a month. The DO101 Loan & EMI Calculator does this for you, with the full amortisation schedule.
Open the Loan & EMI Calculator — freeStep by step
- 1Open the Loan & EMI Calculator.
- 2Enter the loan amount, the annual interest rate and the term in years or months.
- 3Read the EMI, the total interest and the total repaid.
- 4Add an extra monthly payment to see how much sooner the loan ends and how much interest that saves.
Working through the example
For ₹5,00,000 at 9.5% a year over 20 years: the monthly rate r is 9.5 ÷ 12 ÷ 100 = 0.0079167, and n is 240 months. (1 + r)^240 comes to about 6.635. So EMI = 5,00,000 × 0.0079167 × 6.635 ÷ 5.635 ≈ ₹4,661.
Over 240 payments that is about ₹11,18,600 repaid — more than ₹6,18,000 of it interest, which is more than the amount borrowed. That is why the term matters as much as the rate.
Why early payments are mostly interest
Interest is charged on what you still owe. In the first year you owe nearly everything, so most of each EMI covers interest; by the final years most of it repays principal. The amortisation schedule shows that shift year by year, or month by month.
The fastest way to pay less interest
An extra payment each month goes straight to principal and stops interest being charged on that money for the rest of the loan. Even a small top-up can take years off a long home loan — the calculator shows exactly how many months and how much interest. Check whether your lender charges a prepayment fee first.
Frequently asked questions
Does the EMI include processing fees or insurance?
No. Those vary by lender and are not part of the EMI formula. Add them separately when comparing offers.
What about floating-rate loans?
The calculation assumes one fixed rate. When your rate changes, run it again with the new rate, the outstanding balance and the remaining term.
The tool for the job
Monthly payment, total interest and a full repayment schedule for any loan.