EMI Calculator
Enter a loan amount, interest rate and term to see the monthly EMI, the total interest and how each payment splits between principal and interest.
Illustrative estimate, not financial advice.
- Monthly EMI
- $2,169.56
- Total interest
- $270,694
- Total payment
- $520,694
- Number of payments
- 240
A $250,000 loan at 8.5% a year over 20 years has an EMI of $2,169.56 and costs $270,694 in total interest.
| Month | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $2,169.56 | $398.72 | $1,770.83 | $249,601.28 |
| 2 | $2,169.56 | $401.55 | $1,768.01 | $249,199.73 |
| 3 | $2,169.56 | $404.39 | $1,765.16 | $248,795.33 |
| 4 | $2,169.56 | $407.26 | $1,762.30 | $248,388.08 |
| 5 | $2,169.56 | $410.14 | $1,759.42 | $247,977.93 |
| 6 | $2,169.56 | $413.05 | $1,756.51 | $247,564.88 |
| 7 | $2,169.56 | $415.97 | $1,753.58 | $247,148.91 |
| 8 | $2,169.56 | $418.92 | $1,750.64 | $246,729.99 |
| 9 | $2,169.56 | $421.89 | $1,747.67 | $246,308.10 |
| 10 | $2,169.56 | $424.88 | $1,744.68 | $245,883.23 |
| 11 | $2,169.56 | $427.89 | $1,741.67 | $245,455.34 |
| 12 | $2,169.56 | $430.92 | $1,738.64 | $245,024.43 |
| Year | Principal paid | Interest paid | Closing balance |
|---|---|---|---|
| 1 | $4,976 | $21,059 | $245,024 |
| 2 | $5,415 | $20,619 | $239,609 |
| 3 | $5,894 | $20,141 | $233,715 |
| 4 | $6,415 | $19,620 | $227,300 |
| 5 | $6,982 | $19,053 | $220,318 |
| 6 | $7,599 | $18,436 | $212,719 |
| 7 | $8,271 | $17,764 | $204,448 |
| 8 | $9,002 | $17,033 | $195,446 |
| 9 | $9,798 | $16,237 | $185,648 |
| 10 | $10,664 | $15,371 | $174,985 |
| 11 | $11,606 | $14,428 | $163,378 |
| 12 | $12,632 | $13,403 | $150,746 |
| 13 | $13,749 | $12,286 | $136,997 |
| 14 | $14,964 | $11,071 | $122,033 |
| 15 | $16,287 | $9,748 | $105,747 |
| 16 | $17,726 | $8,308 | $88,021 |
| 17 | $19,293 | $6,742 | $68,728 |
| 18 | $20,998 | $5,036 | $47,729 |
| 19 | $22,854 | $3,180 | $24,875 |
| 20 | $24,875 | $1,160 | $0 |
Illustrative estimate, not financial advice.
Assumptions
- Fixed interest rate for the whole term, quoted as a nominal annual rate.
- Payments are made at the end of each month.
- No processing fees, insurance or prepayments. Your lender's schedule can differ slightly.
Illustrative estimate, not financial advice. Results are shown before tax and fees unless stated.
What the emi calculator does
An EMI (equated monthly instalment) is the fixed amount you pay every month to clear a loan over its term. Each payment covers that month's interest first and the rest reduces the principal, so early payments are mostly interest.
How it is calculated
EMI = P x r x (1 + r)^n / ((1 + r)^n - 1), where P is the loan amount, r is the monthly rate (annual rate divided by 12 and by 100) and n is the number of monthly payments. At a 0% rate the EMI is simply P divided by n.
Worked example
A $250,000 loan at 8.5% a year over 20 years has an EMI of $2,169.56 and costs $270,694 in total interest.
Questions and answers
How is EMI calculated?
The EMI formula spreads the loan and its interest into equal monthly payments. It uses the loan amount, the monthly interest rate and the number of months. This page applies exactly that formula.
Does a longer term lower the EMI?
Yes, each payment gets smaller, but you pay interest for more months, so the total interest goes up. Compare the total interest figure for two terms to see the trade-off.
What happens at 0% interest?
The EMI is the loan amount divided by the number of months, and the total interest is zero.
Why is the early part of the schedule mostly interest?
Interest each month is charged on the outstanding balance, which is highest at the start. As the balance falls, a larger share of the same EMI goes to principal.