How the loan EMI formula works
For a fixed-rate amortizing loan, the monthly payment is:
EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1)
- P — principal (loan amount)
- r — monthly interest rate (annual rate ÷ 12 ÷ 100)
- n — total number of monthly payments
If the interest rate is 0%, the payment is simply principal ÷ number of months.
What this calculator shows
- Monthly payment — the fixed EMI you would pay each month.
- Total interest — how much extra you pay over the life of the loan.
- Total paid — principal plus interest.
Example
A $250,000 loan at 6.5% APR for 30 years has 360 months. Monthly rate r = 0.065 ÷ 12. Plugging into the EMI formula gives roughly $1,580.17 per month, with total interest around $318,860 and total repayment near $568,860 (rounded).
Tips before you borrow
- Compare APR, not just the advertised rate — fees change the real cost.
- A shorter term raises the EMI but usually cuts total interest.
- Extra principal payments early in the schedule save the most interest.
- This tool is an estimate. Lenders may use different day-count rules, fees, or insurance.
Privacy
Your loan figures never leave this page. Calculations run in JavaScript on your device — helpful when you are shopping rates or modeling a refinance privately.
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