Break-Even Calculator
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Loan & EMI Calculator
Enter the amount, rate and term into the loan EMI calculator. It returns the monthly payment, total interest and the first twelve months of the amortisation schedule.
Amortisation scheduleTotal interest shownAny currencyFree, no sign-up
How an EMI is calculated
An equated monthly instalment keeps the payment constant across the term while the split between interest and principal shifts.
The formula
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 number of months.
A worked example
500,000 borrowed at 7.5% annual interest over five years:
- Monthly rate = 7.5 ÷ 12 ÷ 100 = 0.00625
- Number of payments = 60
- EMI = 10,018.51
- Total repaid = 601,110.60
- Total interest = 101,110.60 — about 20% of the principal
Read the schedule, not just the payment
Expand the amortisation schedule and look at the first month against the twelfth. On the example above, month one is roughly 3,125 interest and 6,894 principal. By month sixty it is almost entirely principal.
That front-loading has a practical consequence: overpaying early reduces total interest far more than overpaying late. An extra 10,000 paid in year one removes interest that would have accrued for the remaining four years. The same 10,000 paid in year five removes almost nothing, because there is barely any interest left to remove.
If you are considering an overpayment, do it as early as the facility allows.
What the term does
Lengthening the term lowers the monthly payment and raises the total cost, and the effect is larger than most people expect. Try the same 500,000 at 7.5%:
- 3 years: higher monthly payment, roughly 60,000 total interest
- 5 years: roughly 101,000 total interest
- 10 years: roughly 212,000 total interest
Doubling the term from five to ten roughly doubles the interest. Take the shortest term your cash flow genuinely supports — but be honest about what it supports, because a missed payment costs more than the interest saved.
What the loan EMI calculator does not include
Arrangement fees are an input here, but there are others that vary by lender and jurisdiction: early settlement charges, insurance required as a condition of the facility, valuation fees on secured lending, and late payment charges. Ask for the total cost of credit rather than the rate alone when comparing offers.
Before you rely on the result
The arithmetic here is exact and has been checked against worked examples. What a calculator cannot do is know your situation — your contract, your licence category, the elections available to you, or the exceptions that might apply. It applies a formula to the figures you give it.
Use it to get a sense of scale, to sanity-check something you have been quoted, or to work a problem through for yourself. Where the number is going into a decision that matters, have the assumptions underneath it checked. That conversation is free and it usually takes twenty minutes.
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Loan & EMI — common questions
The questions we are asked most about this calculation.
Something not covered? Ask us directly — there is no charge for a straight answer.
Equated Monthly Instalment — a fixed monthly payment covering both interest and principal, calculated so the loan is fully repaid by the end of the term. The payment stays constant while the split between interest and principal shifts from mostly interest at the start to mostly principal at the end.
Interest is charged on the outstanding balance, which is at its highest at the start. As the balance falls, the interest portion of each payment falls with it and more goes to principal. This is why overpaying early reduces total interest far more than the same overpayment made near the end.
Yes, substantially. The monthly payment is lower but you pay interest for longer on a balance that reduces more slowly. Doubling a term from five to ten years roughly doubles the total interest paid on the same amount at the same rate.
Where the facility permits it without penalty, early overpayments are highly effective because they remove interest that would otherwise accrue for the whole remaining term. Check for early settlement charges first — some facilities price them high enough to remove the benefit.
Yes. The amortisation maths is the same for any fixed-rate instalment loan. What differs is the fees attached, so compare the total cost of credit rather than the headline rate when you are weighing up offers.
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