# EMI calculator

Work out your monthly loan payment and total interest

Use it at https://www.quicktoolz.com/tools/emi-calculator. From QuickToolz.

EMI stands for equated monthly instalment, the fixed amount you repay each month on a loan. It depends on the loan amount, the interest rate and the tenure. For ₹10,00,000 at 10.5% for 5 years, the EMI is about ₹21,494, and you pay about ₹2,89,600 in interest.

## How it works

EMI = P × r × (1 + r)ⁿ ÷ ((1 + r)ⁿ − 1)

In the formula, P is the loan amount, r is the monthly interest rate and n is the number of months. Early payments are mostly interest, and later payments are mostly principal.

We round each month to the paisa. The last payment absorbs any rounding, so the balance ends at exactly zero.

Worked example: For ₹10,00,000 at 10.5% a year for 5 years, r is 10.5 ÷ 12 ÷ 100 = 0.00875 and n is 60. The EMI is ₹21,493.90, and total interest is ₹2,89,634.02.

## Examples

| Loan | Rate | Tenure | EMI | Total interest |
| --- | --- | --- | --- | --- |
| ₹5,00,000.00 | 9% | 3 years | ₹15,899.87 | ₹72,395.16 |
| ₹10,00,000.00 | 10.5% | 5 years | ₹21,493.90 | ₹2,89,634.02 |
| ₹25,00,000.00 | 8.5% | 20 years | ₹21,695.58 | ₹27,06,939.76 |
| ₹50,00,000.00 | 8.5% | 20 years | ₹43,391.16 | ₹54,13,879.44 |

## What this tool doesn't cover

- This doesn’t include processing fees or insurance.
- It assumes a fixed rate. A floating rate can change your EMI.
- Your bank’s figure may differ by a few rupees.
- This is an estimate, not financial advice.

## Questions

### What is a good EMI to income ratio?

Many lenders look for total EMIs under about 40% to 50% of your monthly income. Each lender sets its own limit.

### Does a longer tenure save money?

It lowers the EMI, but you pay more interest in total.

### Can I type amounts like 5L?

Yes. You can type 5L for 5 lakh and 1.5Cr for 1.5 crore.

### How is EMI calculated?

EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1). P is the loan amount, r is the monthly rate, and n is the number of months.

### Why does most of my early EMI go to interest?

Interest is charged on what you still owe, and that’s highest at the start. As the balance falls, more of each EMI repays the loan.

## Sources

- [Reserve Bank of India](https://www.rbi.org.in)
- [SEBI investor education](https://investor.sebi.gov.in)