Loan / EMI Calculator
Before you borrow for equipment, a car or a personal loan, see what it really costs. Enter the loan details to get your monthly payment (EMI), total interest and a month-by-month schedule.
How this calculator works
With P = loan amount, r = yearly interest ÷ 12 and n = term in months:
EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1)
Total paid = EMI × n. Total interest = total paid − P. Each month, interest = remaining balance × r and the rest of the EMI reduces the balance.
Worked example
You borrow 10,000 at 12% a year for 12 months. r = 0.12 ÷ 12 = 0.01.
- EMI = 10,000 × 0.01 × 1.0112 ÷ (1.0112 − 1) = 888.49
- Total paid = 888.49 × 12 = 10,661.85
- Total interest = 661.85
Frequently asked questions
What does EMI mean?
EMI stands for Equated Monthly Instalment: the same fixed payment every month that covers both interest and part of the loan.
Why is more interest paid at the start?
Interest is charged on the remaining balance. The balance is highest at the start, so early payments are mostly interest.
Does a longer term save money?
A longer term lowers the monthly payment but increases the total interest you pay.
Are fees included?
No. Lenders may add processing fees or insurance. Add them to the loan amount if they are financed, or budget for them separately.
Should freelancers take loans?
Only when the purchase earns or saves more than it costs. Make sure your safe monthly salary can cover the payment even in a slow month.
Related guides
Results are estimates for general education, not financial advice. Disclaimer.