An EMI (equated monthly instalment) is the fixed amount you pay each month to repay a loan with interest. Enter the amount, the yearly interest rate and the term, and the calculator shows your monthly payment, total interest, total repaid and a year-by-year schedule.
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How to use the calculator
- Enter the amount you want to borrow and choose your currency.
- Enter the yearly interest rate from your loan offer.
- Set the term in years, plus any extra months.
- Read your monthly payment, then open the schedule to see how much of each year’s payments goes to interest.
The EMI formula
EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1)
- P is the amount borrowed
- r is the monthly interest rate (yearly rate ÷ 12 ÷ 100)
- n is the number of monthly payments
Early payments are mostly interest, because interest is charged on a larger balance. As the balance falls, more of each payment goes to the loan itself.
Worked example
Borrowing £20,000 at 7.5% a year over 5 years (60 months):
- Monthly rate r = 7.5 ÷ 12 ÷ 100 = 0.00625
- EMI = £400.76 a month
- Total repaid = £24,045.54, so total interest = £4,045.54
Stretching the same loan to 7 years cuts the payment to about £306.77 but raises total interest to about £5,768.30.
Ways to pay less interest
- Choose the shortest term you can afford. The monthly payment rises, but total interest falls.
- Compare APR, not just the rate. APR includes arrangement fees.
- Overpay when you can, if your loan allows it without a penalty. Overpayments go straight to the balance.
- Check early repayment charges before refinancing.
This calculator is for planning. It isn’t financial advice, and your lender’s figures may differ because of fees or how they calculate interest.
Frequently asked questions
What does EMI stand for?
Equated monthly instalment: a fixed monthly payment that covers both interest and part of the amount borrowed.
Does this work for car loans and mortgages?
Yes, for any fixed-rate loan repaid in equal monthly instalments. Mortgages with a variable rate or interest-only periods will differ.
Why is so much of my early payment interest?
Interest is charged on the outstanding balance, which is highest at the start. As you repay, the interest part shrinks.
What's the difference between interest rate and APR?
The interest rate is the cost of borrowing the money. APR also includes compulsory fees, so it’s the better figure for comparing loans.
Is this calculator free?
Yes. It runs in your browser and doesn’t store anything you enter.
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