# EMI Calculator

URL: https://speedycalculator.com/calculators/finance/emi/
Last updated: 2026-10-25

> The emi calculator works out the EMI (equated monthly instalment) on any loan from the loan amount, interest rate and tenure – with the total interest, total payment, processing fee and the effective rate including the fee.

## Inputs

- Loan amount
- Interest rate (p.a.) (%)
- Loan tenure (years, months)
- Processing fee (%)

## Results

- Monthly EMI
- Total interest payable
- Total payment (principal + interest)
- Processing fee (+18% GST)
- Interest as a share of the total payment
- Effective annual rate including the fee

## Formula

```
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), r = annual rate ÷ 12 ÷ 100, n = months
Total interest = EMI × n − P
```

## Explanation

An EMI includes both principal and interest. In the early months most of the EMI is interest; over time the principal share grows. Prepaying part of the loan reduces either the EMI or the tenure.

### How to use the EMI Calculator

- **Loan amount**
- **Interest rate (p.a.)**
- **Loan tenure**
- **Processing fee**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter the loan amount, interest rate, tenure (years or months) and processing fee.

### Tips

- Figures use the latest published rates; government scheme rates are revised every quarter.
- Choose between the old and new tax regimes carefully – deductions only count in the old regime.
- Keep proofs of investments and rent for your employer and the tax return.
- Use the official portal of each scheme for exact maturity values.

### Common mistakes to avoid

- Assuming scheme interest rates are fixed for the whole term.
- Forgetting tax on interest from fixed and recurring deposits.
- Missing the yearly minimum deposit on PPF or Sukanya Samriddhi accounts.

### Inputs explained

FieldWhat to enterLoan amountAmount in ₹Interest rate (p.a.)In %Loan tenureUnits: years, monthsProcessing feeIn %

### What each result means

- **Monthly EMI** = pmt([Interest rate (p.a.)]÷1200, [Loan tenure], [Loan amount])
- **Total interest payable** = [Monthly EMI]×[Loan tenure] - [Loan amount]
- **Total payment (principal + interest)** = [Monthly EMI]×[Loan tenure]
- **Processing fee (+18% GST)** = [Loan amount]×[Processing fee]÷100×1.18
- **Interest as a share of the total payment** = [Total interest payable]÷[Total payment (principal + interest)]×100
- **Effective annual rate including the fee** = rate([Loan tenure], 0 - [Monthly EMI], [Loan amount] - [Processing fee (+18% GST)])×1200

### Example values

How the main result changes when **Loan amount** changes and everything else stays at the example values above:

Loan amountMonthly EMI500,00010,623.52750,00015,935.281,000,00021,247.041,250,00026,558.811,500,00031,870.572,000,00042,494.09

## Worked example

Inputs — Loan amount: ₹1,000,000; Interest rate (p.a.): 10 %; Loan tenure: 5 years; Processing fee: 1 %.

Results — **Monthly EMI = ₹21,247.04**; Total interest payable = ₹274,822.68; Total payment (principal + interest) = ₹1,274,822.68; Processing fee (+18% GST) = ₹11,800.00; Interest as a share of the total payment = 21.56 %; Effective annual rate including the fee = 10.51 %.

## FAQ

**How is EMI calculated?**
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1).

**What is the EMI on a ₹10 lakh loan?**
About ₹21,250 a month at 10% for 5 years.

**Does a longer tenure reduce EMI?**
Yes, but total interest increases.

**What formula does the EMI Calculator use?**
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), r = annual rate ÷ 12 ÷ 100, n = months.


## Sources

- [Reserve Bank of India](https://www.rbi.org.in/)