EMI Calculator
An equated monthly instalment is the fixed payment that repays both principal and interest over a set term. It stays the same every month, but the split between interest and principal shifts steadily in the borrower's favour.
Monthly instalment
$1,432.86
- Number of payments
- 240
- Total repaid
- $343,886.91
- Total interest
- $143,886.91
Values update as you type. This calculator covers the single scenario its formula assumes — see Common Mistakes for what it leaves out.
The formula this calculator uses
EMI = P x r x (1+r)^n / ((1+r)^n - 1)
- P
- Principal borrowed
- r
- Monthly interest rate, annual rate divided by 12
- n
- Total number of monthly payments
- EMI
- Fixed monthly instalment
How to check the result by hand
- 1
Convert the annual rate to monthly
Divide the annual rate by twelve. A 6% annual rate is 0.5% a month, or 0.005 as a decimal.
- 2
Count the payments
Multiply the term in years by twelve. A twenty-year loan has 240 monthly payments.
- 3
Raise one plus the rate to the power of n
For 0.005 over 240 months, 1.005 raised to 240 is about 3.3102, the compounding factor in the formula.
- 4
Apply the annuity formula
Multiply principal by rate by the factor, then divide by the factor minus one, to get the fixed monthly payment.
- 5
Multiply out the total
Multiply the EMI by the number of payments and subtract the principal to see the total interest over the term.
For worked examples, common mistakes and the limits of this formula, read the full How To Calculate EMI page.