Free EMI calculator: find your monthly loan payment, total interest and full amortization schedule in seconds.
Enter your loan details to see the monthly EMI, total interest and a yearly payoff schedule.
| Year | Principal paid | Interest paid | Balance |
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Note: Results use the standard reducing-balance EMI formula with monthly compounding. Actual lender quotes may differ slightly due to fees, rounding and processing dates.
An EMI calculator tells you exactly what your monthly loan payment will be before you sign anything. EMI stands for Equated Monthly Installment — the fixed amount you pay every month toward a loan until it is fully repaid. Each installment covers part of the interest and part of the principal, so knowing the number upfront lets you judge whether a loan truly fits your budget.
An equated monthly installment is the backbone of most consumer lending: home loans, car loans, personal loans and education loans are all typically repaid in EMIs. The installment stays constant every month, which makes budgeting simple, but its composition changes over time. In the early years, a larger share of each payment goes toward interest; as the balance shrinks, more of each payment attacks the principal. This process is called amortization.
Two forces drive the EMI number: the interest rate and the tenure. A higher rate raises the EMI and the total interest dramatically. A longer tenure lowers the monthly payment but increases the total interest you pay, because interest accrues over more months. Comparing loans only on the EMI is a common mistake — always compare the total interest as well.
The EMI is calculated on a reducing balance with monthly compounding:
EMI = P × r × (1 + r)n / ((1 + r)n − 1)
where P = loan principal, r = monthly interest rate (annual rate ÷ 12 ÷ 100), and n = number of monthly installments.
Worked example: Borrow $300,000 at 7% annual interest for 20 years (240 months).
In month 1, interest = 300,000 × 0.0058333 = $1,750.00 and principal = 2,325.90 − 1,750.00 = $575.90, leaving a balance of $299,424.10. By month 240 the payment is almost entirely principal.
Say you borrow $25,000 for a car at 8.5% for 5 years. The EMI is $512.91, the total interest is $5,774.80, and the total payable is $30,774.80. Now suppose you shorten the tenure to 3 years (36 months): the EMI rises to about $789.02, but the total interest falls to roughly $3,404.86 — a saving of nearly $2,370. The shorter loan costs more each month but far less overall, which is exactly the trade-off the calculator’s schedule table makes visible.
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This page is an EMI (Equated Monthly Installment) calculator on Sigma Calculator. It computes the fixed monthly payment for a loan using the reducing-balance formula EMI = P×r×(1+r)^n / ((1+r)^n − 1), and reports total interest, total payable and a yearly amortization schedule. It is a pure-math tool; results are estimates and may differ from lender quotes due to fees and rounding.
EMI stands for Equated Monthly Installment. It is the fixed amount you pay your lender every month until the loan is fully repaid. Each EMI has two parts: interest on the outstanding balance and a portion that reduces the principal.
EMI is calculated with the formula EMI = P × r × (1 + r)^n / ((1 + r)^n − 1), where P is the loan amount, r is the monthly interest rate, and n is the number of monthly payments. For example, a $300,000 loan at 7% for 20 years gives an EMI of $2,325.90.
Yes, a longer tenure lowers the monthly EMI because the principal is spread over more payments. However, you pay significantly more total interest. A $25,000 car loan at 8.5% costs $5,774.80 in interest over 5 years but only about $3,404.86 over 3 years.
Because EMI is calculated on a reducing balance, interest is charged on the full outstanding principal at the start. As you pay down the principal, the interest portion of each EMI shrinks and the principal portion grows, while the total EMI stays the same.
Extra prepayments reduce the outstanding principal, which cuts the total interest and shortens the loan tenure. Most lenders keep the EMI the same and reduce the remaining tenure, though some allow you to lower the EMI instead.
Cite this page as: “EMI Calculator.” Sigma Calculator. Accessed October 20, 2026. https://sigmacalculator.net/financial-calculators/emi-calculator/
Last updated: October 20, 2026