Mathematical Formula & Method
Loan EMI Calculator Formula
EMI = [P × r × (1 + r)ⁿ] / [(1 + r)ⁿ − 1]
Worked Examples & Step-by-Step Solutions
$500,000 loan at 8.5% for 5 years (60 months)
- Monthly rate r = 8.5 / 12 / 100 = 0.007083.
- n = 60 months.
- Monthly EMI = $10,258.32.
- Total Payment = $615,499. Total Interest = $115,499.
How to Use the Loan EMI Calculator
- Enter loan amount, annual interest rate, and tenure in years to get monthly EMI.
Important Assumptions & Unit Conventions
- Excludes processing fees, insurance, and prepayment charges.
Frequently Asked Questions
What is EMI?
Equated Monthly Installment (EMI) is the fixed payment amount made by a borrower to a lender at a specified date each calendar month.
Related Calculators
Compound Interest Calculator
Calculate compound interest, future value, and compounding growth over time.
Simple Interest Calculator
Calculate simple interest on principal deposits and loans over time.
Savings Calculator
Calculate future savings balance with recurring monthly deposits and interest.