EMI Calculator
Work out the monthly instalment on a business or personal loan — and see exactly how much interest it costs.
How EMI is calculated
EMI stands for Equated Monthly Instalment — the fixed amount you repay each month until a loan is cleared. It is worked out with this formula:
EMI = [P × r × (1 + r)n] ÷ [(1 + r)n − 1]
- P is the principal — the loan amount.
- r is the monthly interest rate (annual rate ÷ 12 ÷ 100).
- n is the loan tenure in months.
What changes your EMI
- Loan amount — a bigger loan means a bigger EMI.
- Interest rate — a higher rate raises both the EMI and the total interest.
- Tenure — a longer tenure lowers the monthly EMI, but you pay more total interest over the life of the loan.
Good to know
This calculator gives a close estimate. An actual loan EMI can differ slightly because of processing fees, the exact day-count method the lender uses, or insurance bundled into the loan. Always confirm the figure with your lender.
Keep your loans in your books
Once a loan is running, the interest is an expense and the principal repayment is not — a distinction that trips up many business owners. Booksmor tracks loans, EMIs and interest correctly in your accounts. Start a 30-day free trial.
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