How is a loan EMI calculated?
EMI (Equated Monthly Instalment) is the fixed amount you pay each month until a loan is fully repaid. It's calculated with this formula:
- 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 payments (years × 12).
EMI per 100,000 borrowed
Monthly instalment for every 100,000 borrowed, by interest rate and term. It works in any currency — for 1 lakh, 100,000 dollars or 100,000 rupees alike. Scale for your loan: borrowing 250,000 means 2.5 times the figure shown.
| Rate | 1 yr | 2 yrs | 3 yrs | 4 yrs | 5 yrs | 7 yrs |
|---|---|---|---|---|---|---|
| 6% | 8,607 | 4,432 | 3,042 | 2,349 | 1,933 | 1,461 |
| 8% | 8,699 | 4,523 | 3,134 | 2,441 | 2,028 | 1,559 |
| 10% | 8,792 | 4,614 | 3,227 | 2,536 | 2,125 | 1,660 |
| 12% | 8,885 | 4,707 | 3,321 | 2,633 | 2,224 | 1,765 |
| 14% | 8,979 | 4,801 | 3,418 | 2,733 | 2,327 | 1,874 |
| 16% | 9,073 | 4,896 | 3,516 | 2,834 | 2,432 | 1,986 |
| 18% | 9,168 | 4,992 | 3,615 | 2,937 | 2,539 | 2,102 |
| 20% | 9,263 | 5,090 | 3,716 | 3,043 | 2,649 | 2,221 |
Why total interest matters
A longer term lowers your monthly payment but increases the total interest you pay. Try dragging the term slider — you'll see the monthly payment fall while total interest rises. Paying a little extra each month can save a large amount over the life of the loan.
What is the EMI on 100,000 at 10% for 5 years?
2,125 a month. Over 60 months you repay 127,482 in total, so the interest is 27,482.
What is the EMI for 500,000 at 12% for 3 years?
16,607 a month — five times the 3,321 shown for 100,000 in the table.
How is EMI calculated?
EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1), where P is the amount borrowed, r is the monthly rate (annual rate ÷ 12 ÷ 100) and n is the number of months.
What's the difference between interest rate and APR?
The interest rate is the cost of borrowing the principal. APR also includes certain fees, so it's usually slightly higher and better for comparing loans.
Does this include fees or insurance?
No — this shows principal and interest only. Add any arrangement fees or insurance separately.