EMI & loan calculator
Work out the monthly instalment on a loan, plus the total interest and total amount you would repay over the full tenure.
This tool involves interest (riba) and is shared for educational and informational purposes only — it is not financial advice. Interest-based finance is not permissible in Islam; please consider Shariah-compliant alternatives.
How EMI is calculated
P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the number of months. The total payment is the EMI times the number of months, and the total interest is that figure minus the principal.
FAQs about EMI
How is EMI calculated?
EMI uses the loan amount, the monthly interest rate, and the number of months. The formula is P × r × (1+r)^n ÷ ((1+r)^n − 1), where r is the monthly rate and n is the tenure in months.
Does a longer tenure reduce my EMI?
Yes, a longer tenure lowers the monthly EMI but increases the total interest you pay over the life of the loan, so the loan costs more overall.
What is the difference between EMI and total payment?
EMI is the fixed amount paid each month. Total payment is the EMI multiplied by the number of months, which equals the principal plus all the interest.
Can I reduce the interest I pay?
Paying a larger down payment, choosing a shorter tenure, or making part-prepayments all cut the total interest. Even small extra payments early on make a noticeable difference.
Is the interest rate fixed or reducing?
This tool uses the reducing-balance method that most banks use, where interest is charged on the outstanding balance, which falls with every EMI you pay.