EMI Calculator - Loan Monthly Payment & Amortisation
Work out the monthly instalment on any loan, see exactly how much of it is interest, and find out how much a small extra payment each month would save you.
Nominal yearly rate quoted by the lender.
Extra monthly payment
See how much interest and time a small prepayment saves.
Amortisation schedule
| Year | Principal paid | Interest paid | Balance |
|---|---|---|---|
| 1 | 43,736.17 | 14,962.28 | 206,263.83 |
| 2 | 46,665.26 | 12,033.18 | 159,598.57 |
| 3 | 49,790.52 | 8,907.93 | 109,808.05 |
| 4 | 53,125.08 | 5,573.36 | 56,682.97 |
| 5 | 56,682.97 | 2,015.48 | 0.00 |
What is an EMI Calculator?
An EMI calculator turns three numbers — the loan amount, the interest rate and the tenure — into the one figure that actually affects your monthly budget: the Equated Monthly Instalment. Every instalment is the same size, but its composition changes every month. Early payments are dominated by interest on a large outstanding balance; later payments are almost entirely principal. This tool shows you both the headline instalment and the full month-by-month breakdown behind it.
Why Use an EMI Calculator Before You Borrow?
Lenders advertise the instalment, not the total cost. A 7-year car loan looks cheaper than a 4-year one because the monthly figure is smaller — while quietly costing you far more in interest. Running the numbers first tells you what the loan really costs and whether the instalment fits your income before you sign anything.
- See the exact monthly instalment for any amount, rate and tenure
- Compare total interest across different tenures side by side
- Check the instalment against your income before you apply
- Read the full amortisation schedule, monthly or yearly
- Model extra monthly payments and see the interest and time saved
- Switch currency between SAR, AED, USD, INR and 16 more
Common EMI Calculator Use Cases
Car Finance
Compare 3, 4 and 5-year terms before visiting the showroom.
Home Loans
Check whether a longer tenure is worth the extra interest.
Personal Loans
Understand the real cost of consolidating existing debt.
Prepayment Planning
See how much an extra 500 a month knocks off your loan.
Offer Comparison
Put two bank quotes side by side on equal terms.
Budget Planning
Fit a new instalment into your existing monthly outgoings.
How to Calculate Your EMI
- Enter the loan amount you want to borrow.
- Enter the annual interest or profit rate your lender quotes.
- Set the tenure in years or months.
- Pick your currency.
- Read your EMI, total interest and total repayment instantly.
- Optionally add an extra monthly payment to see how much interest and time it saves.
The EMI Formula Explained
The standard reducing-balance formula is:
EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1)
- P — the principal, or amount borrowed.
- r — the monthly rate, which is the annual rate divided by 12 and then by 100. A 6.5% annual rate becomes 0.005417.
- n — the total number of monthly instalments. A 5-year loan is 60.
Watch out for one trap: some lenders quote a flat rate, where interest is charged on the original principal for the whole term rather than on the reducing balance. A flat rate of 4% is roughly equivalent to a reducing-balance rate of 7–8%, so always confirm which basis a quote uses before comparing offers.
Tenure, Interest and the Trade-off
Stretching a loan reduces the instalment but increases the total interest, because a large balance stays outstanding for longer. The reverse is also true: shortening the tenure raises the instalment but can cut total interest dramatically. Use the tenure field to test both directions, and use the extra-payment field to get most of the benefit of a shorter term while keeping the flexibility of a longer one.
Who This EMI Calculator Is For
- Anyone comparing car, personal or home finance offers
- Borrowers planning prepayments or early settlement
- Expats budgeting a loan against a fixed monthly salary
- Small business owners costing equipment finance
- Finance students learning amortisation
- Advisers and brokers preparing client illustrations
❓ Frequently Asked Questions
What is an EMI?
EMI stands for Equated Monthly Instalment — the fixed amount you pay your lender every month until the loan is fully repaid. Each instalment covers interest on the outstanding balance plus a portion of the principal.
How is EMI calculated?
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100) and n is the number of monthly instalments.
Why does my early EMI go mostly to interest?
Interest is charged on the outstanding balance, which is highest at the start. As the balance falls, the interest portion shrinks and more of each identical instalment goes towards principal.
Does a longer tenure reduce my EMI?
Yes, but it increases the total interest you pay. A longer loan spreads the principal over more months, lowering each instalment while keeping the balance outstanding for longer.
How much does prepayment save?
Extra payments go straight to principal, so they cut both the remaining interest and the tenure. Enter an amount in the extra monthly payment field to see the exact saving for your loan.
Is this calculator suitable for Saudi bank loans?
Yes. Enter the annual profit or interest rate your bank quotes and choose SAR as the currency. Note that Islamic finance products sometimes quote a flat rate, which is not the same as a reducing-balance rate.
What is an amortisation schedule?
It is a month-by-month or year-by-year table showing how much of each payment goes to interest, how much reduces the principal, and what balance remains.
Does the calculator include fees and insurance?
No. Processing fees, administration charges and credit life insurance are charged separately by the lender and are not part of the EMI formula.
Can I use it for a zero-interest loan?
Yes. Set the rate to 0 and the EMI becomes simply the loan amount divided by the number of months.
Is my loan data sent anywhere?
No. Every calculation runs entirely in your browser. Nothing is uploaded, logged or stored.
Is this EMI calculator free?
Yes. It is completely free with no sign-up, no limits and no installation.