EMI Calculator
Calculate your monthly loan EMI, total interest and total payment for any loan amount, rate and tenure.
How to Use This EMI Calculator
- 1Enter your total loan amount
- 2Enter the annual interest rate charged by your bank
- 3Enter the loan tenure in years
- 4Click Calculate to see your monthly EMI and total interest
Formula
EMI = P × r × (1+r)^n / ((1+r)^n - 1) where P = Principal, r = monthly interest rate, n = number of months
Frequently Asked Questions
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About EMI Calculator
EMI stands for Equated Monthly Installment, the fixed amount you pay to a bank or lender every month until your loan is fully repaid. This free EMI calculator helps you plan home loans, car loans, personal loans, and any other installment-based borrowing by showing your monthly payment, total interest payable, and total amount paid over the entire tenure. Banks in Pakistan and worldwide use the reducing balance method to compute EMI. The formula is EMI = P x r x (1+r)^n / ((1+r)^n - 1), where P is the principal loan amount, r is the monthly interest rate (annual rate divided by 12), and n is the total number of monthly installments. For example, a home loan of PKR 5,000,000 at 12% annual interest for 20 years results in a monthly EMI of approximately PKR 55,054, with total interest exceeding the original principal. For a car loan of PKR 2,500,000 at 14% for 5 years, the monthly EMI is around PKR 58,190. Three main factors affect your EMI: the principal amount (higher principal means higher EMI), the interest rate (even a 0.5% change significantly impacts total cost), and the loan tenure (longer tenure lowers monthly EMI but increases total interest). The reducing balance method charges interest only on the outstanding principal, which is more favorable to borrowers than the flat rate method where interest is calculated on the original loan amount throughout. Tips for lowering your EMI include making a larger down payment, negotiating a lower interest rate, choosing a longer repayment period, or making prepayments when you have surplus funds. Use this calculator to compare different loan scenarios side by side before visiting your bank.