Loan & Banking Utility
Free Loan EMI Calculator Online (2026)
Calculate exact Monthly Installments (EMI), Total Interest Payable, and Loan Payoff for Home, Car, and Personal Loans.
Monthly Loan EMI
₹20,517
Fixed monthly installment
Total Interest Payable
₹2,31,020
Total cost of borrowing
Total Payment (Principal + Int)
₹12,31,020
Total cash outflow over tenure
How Loan EMI Calculations Work: The Banking Standard Formula
An Equated Monthly Installment (EMI) is a fixed payment amount made by a borrower to a lender at a specified calendar date each month. EMIs apply to both interest and principal each month so that over a specified number of years, the loan is paid off in full.
1. The Mathematical EMI Formula
EMI = [P × r × (1 + r)^n] ÷ [(1 + r)^n − 1]
- P: Principal Loan Amount borrowed.
- r: Monthly interest rate (Annual rate ÷ 12 ÷ 100).
- n: Loan tenure in months (Years × 12).
Frequently Asked Questions (FAQ)
How do prepayments reduce my overall loan interest?
Making partial principal prepayments directly reduces your outstanding balance, shortening your overall loan tenure and saving thousands of rupees in compound interest charges.