An EMI (Equated Monthly Installment) is a fixed payment amount made by a borrower to a lender at a specified date each month. EMIs are used to pay off both interest and principal each month so that over a specified number of years, the loan is paid off in full. This calculator shows your exact monthly payment and total cost.
Monthly EMI:
Total Interest:
How to Use This Tool
Enter the total loan amount (principal).
Enter the annual interest rate charged by the lender.
Enter the loan tenure in months.
Click Calculate to see your fixed monthly EMI and total interest cost.
The Formula
EMI is calculated using: EMI = P x r x (1+r)^n / [(1+r)^n - 1] where P is the principal loan amount, r is the monthly interest rate (annual rate / 12), and n is the number of monthly installments.
Why It Matters
You are taking a $50,000 car loan in India at 8.5% annual interest for 3 years. You want to know your exact monthly EMI before signing so you can budget accordingly and ensure the payment fits your monthly income.