Loan EMI Calculator

Loan Amount (₹): Annual Interest Rate (%): Loan Tenure (Months):

Planning a major purchase like a new home, a car, or funding your education? Understanding your financial commitment is the first step towards making a smart decision. Our free, fast, and easy-to-use Loan EMI Calculator helps you instantly calculate your Equated Monthly Installment (EMI).

Take control of your finances by accurately estimating your monthly payments. This powerful tool removes the guesswork, allowing you to plan your budget, compare different loan offers, and choose a repayment plan that fits your life perfectly.

What is an Equated Monthly Installment (EMI)?

An Equated Monthly Installment (EMI) is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. EMIs are used to pay off both the interest and principal each month so that over a specified number of years, the loan is paid off in full.

The two main components of an EMI are:

Principal: The original loan amount.
Interest: The cost you pay for borrowing the principal amount.

In the initial years of your loan, a larger portion of your EMI goes towards paying the interest. As the loan matures, a larger portion is allocated to paying off the principal.

Benefits of Using an Online Loan EMI Calculator

Accurate Financial Planning: Know your exact monthly outflow before you even apply for a loan. This helps in creating a realistic budget.
Saves Time & Effort: Avoid complex manual calculations and get instant, accurate results.
Helps Compare Loan Offers: Easily input different interest rates and tenures from various banks to find the most affordable loan option.
Improves Negotiation Power: When you know what you can afford, you can negotiate better terms with lenders.
Prepayment Planning: Use the amortization schedule to see how making a prepayment can reduce your total interest and loan tenure.

Understanding Your Loan EMI Calculation Results

Our calculator does more than just give you a number. It provides a complete financial picture of your loan.

Monthly EMI: This is the fixed amount you will pay to the lender every month until the loan is fully repaid.
Total Interest Payable: This shows the total cost of borrowing the money—the cumulative interest you will pay over the entire loan tenure.
Total Payment: This is the sum of the principal loan amount and the total interest payable, giving you the grand total of your repayment.

Frequently Asked Questions (FAQ)

What types of loans can I calculate EMI for?

Our versatile calculator is perfect for various credit products, including:

Home Loan EMI Calculator
Car Loan EMI Calculator
Personal Loan EMI Calculator
Education Loan EMI Calculator
Business Loan EMI Calculator

How does the loan tenure affect my EMI?

A longer loan tenure results in a lower monthly EMI, making it more affordable on a month-to-month basis. However, you will end up paying more in total interest over the life of the loan. Conversely, a shorter tenure means a higher EMI but less total interest paid.

How does the interest rate impact my EMI?

The interest rate has a direct impact on your EMI. A higher interest rate leads to a higher EMI and a higher total interest cost. Even a small difference in the interest rate can significantly affect your total repayment amount, which is why it’s crucial to compare offers.

Can I prepay my loan to reduce my EMI?

Yes, most banks allow prepayment or part-payment of a loan. Making a prepayment reduces your outstanding principal, which can result in a lower EMI for the remaining tenure or a shorter loan tenure altogether. Use our calculator to model how a prepayment would affect your loan.

Is a lower EMI always the better option?

Not necessarily. While a lower EMI is easier on your monthly budget, it often means you are paying the loan over a longer period and will pay significantly more in total interest. The best option depends on your financial capacity and goals.

How to Use the Allsums Loan EMI Calculator

The Loan EMI Calculator is a powerful tool designed to help businesses and individuals calculate Equated Monthly Instalments (EMI) for loans such as business loans, personal loans, or equipment financing. This calculator ensures accurate repayment planning and helps you choose the best loan options. Follow these steps to use the calculator:

Step 1: Enter Loan Amount

Input the total amount borrowed in the “Loan Amount (₹)” field.
For example:
- If you are borrowing ₹500,000, enter 500000.
Ensure the loan amount reflects the principal amount you intend to borrow.

Step 2: Enter Annual Interest Rate

Input the yearly interest rate charged on the loan in the “Annual Interest Rate (%)” field.
For example:
- If the annual interest rate is 10%, enter 10.
The interest rate is typically provided by the lender and may vary based on the loan type and borrower’s creditworthiness.

Step 3: Enter Loan Tenure

Input the duration of the loan in months in the “Loan Tenure (Months)” field.
For example:
- If the loan tenure is 5 years, enter 60 (5 years × 12 months).
The loan tenure determines the repayment period and affects the monthly EMI amount.

Step 4: Calculate EMI

Click the “Calculate EMI” button to generate the result.
The calculator will display:
- Monthly EMI : The fixed amount payable every month.
- Total Payment : The total amount paid over the loan tenure, including both principal and interest.
- Total Interest Paid : The total cost of borrowing the loan.

Understanding the Results

Monthly EMI : The fixed amount you need to pay every month to repay the loan.
Total Payment : The sum of all EMIs paid over the loan tenure.
Total Interest Paid : The total cost of borrowing the loan, which is the difference between the total payment and the loan amount.
Example:
- If the loan amount is ₹500,000, the annual interest rate is 12%, and the loan tenure is 36 months:
  - Monthly EMI : ₹16,607.15
  - Total Payment : ₹597,857.40
  - Total Interest Paid : ₹97,857.40