Interest Rate Calculator
Show monthly breakdown
What is Interest Rate Calculator?
An interest rate is the price of borrowing money, shown as a percentage of the loan each year. An EMI (Equated Monthly Instalment) is the fixed amount you pay every month until a loan is repaid.
Each EMI is a mix of two parts: interest on the amount you still owe, and repayment of the principal.
What this tool does
Calculates the monthly EMI for a loan amount, an annual interest rate and a duration in years, using the reducing balance method. It also shows the total interest, the total you will pay, and a monthly breakdown of principal, interest and remaining balance.
How to use it
- Enter the loan amount.
- Enter the annual interest rate and the duration in years.
- Press Calculate EMI to see the monthly payment, the totals and the breakdown table. Tick or untick the breakdown to show or hide it.
Did you know?
- In the early months most of each EMI goes to interest, and the share paid toward principal grows over time.
- A longer loan lowers your monthly EMI but increases the total interest you pay.
- The EMI formula is P x r x (1 + r)^n divided by ((1 + r)^n - 1), where P is the loan, r is the monthly rate and n is the number of months.