Loan EMI Calculator
Compute the equated monthly installment (EMI), total interest and total repayment of a loan.
Input Data
Results
At a glance:EMI (Equated Monthly Installment) is the fixed monthly payment of a loan, the world's most common equal-installment model (mortgages, car, personal loans), with the same payment each month. Monthly rate i = annual ÷ 12; periods n = years × 12; EMI = P × i × (1+i)^n ÷ ((1+i)^n − 1); total repayment = EMI × n; total interest = total repayment − P. It is a classic for comparing borrowing costs.
Formula
i = annual ÷ 12; n = years × 12.
EMI = P × i × (1+i)^n ÷ ((1+i)^n − 1); at i=0, P ÷ n.
Total interest = EMI × n − P.
$$EMI = P \times \dfrac{i(1+i)^n}{(1+i)^n - 1}$$$$i = \dfrac{r}{12},\quad n = \text{years} \times 12$$$$\text{Total Interest} = EMI \times n - P$$How to Use
- Enter the loan amount.
- Enter the annual rate and tenure in years.
- View EMI, total interest and total repayment.
Case Studies
Case 1: EMI, total interest of a personal loan
Borrow HK$500,000 at 6% over 5 years (60 months).
i = 0.06/12 = 0.005; EMI = 500,000 × 0.005×1.005^60/(1.005^60−1) ≈ HK$9,660.07.
Total repayment = 9,660.07 × 60 ≈ HK$579,604; total interest ≈ HK$79,604.
Case 2: Shorter term, less interest
Same 500,000 at 6% but 3 years (36 months): EMI ≈ HK$15,215.66; total interest ≈ HK$47,764.
Versus 5 years (interest ~79,604), 3 years saves ~31,840 but the monthly is ~5,555 higher. Shorter term cuts interest; weigh cash flow.
FAQ
What is EMI?
EMI (Equated Monthly Installment) is the fixed monthly payment of a loan — same every month, combining principal and interest. Common for mortgages, car and personal loans. Early payments are mostly interest, later mostly principal, but the amount is flat.
How can I lower the total interest?
Shorten the term, lower the rate, or pay extra to principal. The EMI stays until you pre-pay; extra principal directly shortens interest. Compare terms here.
Is EMI the same every month?
Yes, EMI is fixed by definition; only the principal/interest split shifts (interest falls, principal rises over time). If the rate floats, the EMI changes.
What if the rate is interest-free?
At i=0 the formula's denominator is zero; this tool special-cases it: EMI = principal ÷ periods, total interest = 0. No error.
EMI vs card minimum payment — which costs more?
EMI is a fixed-term, fixed-amount amortising loan: principal falls each month, term known, total interest predictable. Credit-card minimum payment is a revolving balance: you pay only a small fraction, the rest rolls with high interest (~30%+ in HK) and never 'amortises' unless you pay more. So card minimum is far costlier long run — if you can, convert to an instalment/EMI loan at a far lower rate; only pay the minimum when truly short, and repay fast. Pair with the credit-card calculator.
How to compare two EMI loans?
Compare total interest and total repayment, not just the rate or EMI. (1) Lower rate → lower EMI/interest. (2) Shorter term → higher EMI but far less interest. (3) Fees, cash rebates, early-repayment penalties change the true cost. (4) Fixed vs floating — HK mortgages are mostly H/P-plan floating, so stress-test with +2%. (5) Use this tool to flip amounts/rates/terms and compare totals; for two offers, compute both and pick the lower total cost you can afford. Pair with the loan-comparison and refinance calculators.
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References
Content review: Calculatorism Science Team. Results are for reference only; please refer to the relevant authorities for the official figures.