Your loan
Works for any currency — the numbers scale, the symbol doesn't matter.
How EMI is calculated
Every fixed-rate instalment loan — mortgages, car loans, personal loans — uses the same underlying formula. Each monthly payment (EMI) is identical throughout the term, but the mix inside it changes: early payments are mostly interest, later payments are mostly principal, even though the total you pay each month never moves.
The formula is EMI = P × r × (1+r)n ÷ ((1+r)n − 1), where P is the amount borrowed, r is the interest rate per month (the annual rate divided by 12 and by 100), and n is the total number of monthly payments.
Reading the split
The bar above the totals shows how your total repayment divides between principal (what you borrowed) and interest (what it cost you to borrow it). A longer term lowers the monthly payment but raises the interest share, since the balance stays outstanding for longer. A shorter term does the opposite — higher monthly payment, less interest overall.
Common questions
What is EMI?
EMI stands for Equated Monthly Instalment — a fixed monthly payment that pays off a loan over its term. Each payment covers that month's interest plus a portion of the principal, and the split shifts toward more principal as the loan progresses.
How is EMI calculated?
EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1), where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the number of monthly payments. This is the standard amortising-loan formula used by banks.
Why is the total repayment more than the loan amount?
Because interest accrues on the outstanding balance throughout the term. The longer the term or the higher the rate, the larger the interest portion, which is why the total interest figure can sometimes exceed the loan amount itself on long low-payment terms.
Is this the exact amount my bank will charge?
It is a close estimate using the standard formula, but real loans can include fees, insurance, rounding rules or a different compounding method. Treat this as a planning figure and confirm the exact terms with your lender.