Use the free Loan Calculator on ToolVexa, also called an EMI calculator, to work out your monthly loan payment. Enter the loan amount, the annual interest rate and the term in months.
How to Use
Enter the amount you borrow, the annual interest rate as a percentage, and how many monthly payments you will make. Press Calculate to see the monthly EMI, the total payment and the total interest.
Formula in Plain Words
First turn the annual rate into a monthly rate by dividing by 12 and then by 100. The EMI formula then spreads the loan over the term, so each monthly payment covers part of the interest and part of the amount borrowed.
Worked Example
For a loan of 100000 at 10% a year over 12 months, the monthly rate is about 0.8333%, and the EMI is about 8791.59. The total payment is about 105499.06, so the total interest is about 5499.06.
FAQs
What does EMI mean?
EMI means Equated Monthly Instalment, which is the fixed amount you pay each month until the loan is repaid.
Is the rate I enter annual or monthly?
Enter the annual rate, for example 10 for 10% a year. The calculator converts it to a monthly rate for you.
Does a longer term lower the EMI?
Usually yes, because the amount is spread over more months, but the total interest paid is normally higher.