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Loan EMI Calculator Calculate Equated Monthly Installment (EMI) for any loan with year-by-year breakdown.

Loan EMI Calculator illustration
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Loan EMI Calculator

Calculate Equated Monthly Installment (EMI) for any loan with year-by-year breakdown.

1

Enter Loan Amount

Input the total loan principal amount.

2

Set Rate & Term

Enter the annual interest rate and loan tenure in years.

3

View EMI Details

See your monthly EMI, total payment, and year-by-year breakdown.

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What Is Loan EMI Calculator?

An EMI (Equated Monthly Installment) calculator determines the fixed monthly payment for any type of loan — personal, auto, student, or business. The EMI remains constant throughout the loan term, but the composition changes: early payments are interest-heavy, while later payments are principal-heavy. This calculator computes the EMI using the standard annuity formula, then generates a year-by-year breakdown showing how much principal and interest you pay each year and the remaining balance. It's invaluable for financial planning, helping you understand the true cost of borrowing and compare different loan offers. The year-by-year view reveals the total interest burden and helps you see how prepayments could accelerate your debt payoff.

Why Use Loan EMI Calculator?

  • Works for any loan type (personal, auto, student, business)
  • Shows year-by-year breakdown of principal and interest
  • Displays total cost of the loan including all interest
  • Clear EMI formula reference for understanding
  • Helps compare different loan offers

Common Use Cases

Auto Loans

Calculate monthly car payments before visiting the dealership.

Personal Loans

Understand the full cost of personal loans from banks or online lenders.

Student Loans

Plan for student loan repayments and understand total interest burden.

Loan Comparison

Compare EMIs from different lenders to find the best deal.

Technical Guide

EMI is calculated using the formula: EMI = P × r × (1+r)^n / ((1+r)^n − 1), where P is the principal, r is the monthly interest rate (annual/12), and n is the total number of months. This produces a fixed payment where each installment covers the month's interest plus a portion of principal. The interest component for month m is: Interest_m = RemainingBalance × r. The principal component is: Principal_m = EMI − Interest_m. As the balance decreases, less goes to interest and more to principal — this is why prepaying principal is most effective early in the loan. The year-by-year breakdown aggregates monthly figures into annual totals, showing the cumulative principal paid, interest paid, and remaining balance at each year end.

Tips & Best Practices

  • 1
    Even a small reduction in interest rate significantly reduces total cost over long terms
  • 2
    Prepaying principal early in the loan saves the most interest
  • 3
    Compare both the EMI and total interest when evaluating loan offers
  • 4
    Shorter loan terms have higher EMIs but much lower total interest
  • 5
    The formula assumes a fixed interest rate throughout the loan term

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Frequently Asked Questions

Q What does EMI stand for?
EMI stands for Equated Monthly Installment — a fixed payment amount that includes both principal repayment and interest, paid monthly until the loan is fully repaid.
Q Is the EMI the same every month?
Yes, the total EMI amount is fixed for the entire loan term. However, the proportion going to interest vs principal changes each month.
Q How can I reduce my EMI?
You can reduce EMI by: (1) choosing a longer term (more months), (2) making a larger down payment, (3) negotiating a lower interest rate, or (4) reducing the loan amount.
Q Does this work for variable-rate loans?
This calculator assumes a fixed rate. For variable-rate loans, the EMI changes when the rate adjusts. Recalculate with the new rate at each adjustment period.
Q What is the total cost of a loan?
Total cost = EMI × number of months. The difference between total cost and loan amount is the total interest paid over the loan term.

About This Tool

Loan EMI Calculator is a free online tool by FreeToolkit.ai. All processing happens directly in your browser — your data never leaves your device. No registration or installation required.