How to use this loan calculator
Enter the loan amount you want to borrow, the annual interest rate offered by your lender, and the tenure in years. The calculator instantly shows your monthly EMI, the total interest you will pay over the life of the loan, and the total amount repayable. Adjust any value to compare scenarios before you commit.
How the EMI is calculated
The EMI is derived using the standard reducing-balance formula: EMI = P × r × (1 + r)^n ÷ [(1 + r)^n − 1], where P is the principal, r is the monthly interest rate (annual rate divided by 12 and by 100), and n is the total number of monthly installments. Early payments go mostly toward interest, and later payments mostly toward principal.
Example
On a $200,000 loan at 8% annual interest over 20 years, the monthly EMI is roughly $1,673, and you would pay about $201,000 in total interest, more than the amount borrowed. Shortening the tenure to 15 years raises the EMI but cuts total interest significantly.
Tips to lower your EMI
Make a larger down payment to reduce the principal, shop around for a lower interest rate, or choose a longer tenure to reduce the monthly outgo (while accepting more total interest). Prepaying whenever you can reduces both the balance and the interest you pay overall.