Loan & EMI Calculator 2026

EMI (Equated Monthly Instalment) is the fixed monthly payment you make to repay a loan. Each payment covers interest charges for that month plus a portion of the principal. In the early months, a higher proportion goes toward interest; as the loan progresses, more goes toward the principal.

EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1), where P is the principal, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the total number of months.

Yes — spreading repayments over a longer term lowers the monthly EMI but significantly increases the total interest you pay. For example, a £10,000 loan at 7% over 3 years costs less total interest than the same loan over 5 years, even though the monthly payments are higher.

A loan is the sum of money you borrow. EMI (Equated Monthly Instalment) is the fixed monthly amount you repay, which includes both interest and a portion of the principal. The EMI is calculated so that the loan is fully repaid by the end of the agreed term.

Both reduce the total interest you pay, but in different ways. A lower interest rate reduces the cost of borrowing across the whole term. A shorter term means you pay interest for fewer months. For large loans, even a small rate reduction saves a meaningful amount — and combining a lower rate with a shorter term saves the most.

Yes. The EMI formula is the same for any type of fixed-rate instalment loan — personal loans, car finance, business loans and more. Just enter the loan amount, the annual interest rate and the term in months to see your monthly repayment and total interest.

Interest is charged on your outstanding balance, which is highest at the start. So early instalments contain more interest and less capital repayment. As you pay down the balance, the interest portion shrinks and more of each payment reduces the principal. This is why overpaying early saves the most interest.