Loan Calculator: find the EMI, loan amount, tenure or rate
A loan has four numbers: the loan amount, the interest rate, the tenure and the EMI. Type three of them. The calculator gives the fourth, the total interest and the total that you pay.
Example: ₹10 lakh at 9% for 120 months has an EMI of ₹12,668. With an EMI of ₹15,000 at 9%, the same loan ends in 7 years 9 months (93 months).
From your EMI: an EMI of ₹25,000 at 8.5% for 20 years pays for a loan of approximately ₹28.8 lakh.
The four formulas
r is the yearly rate ÷ 12 ÷ 100, and n is the number of months.
- EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1).
- Loan amount P = EMI × ((1 + r)n − 1) ÷ (r × (1 + r)n).
- Tenure n = −log(1 − r × P ÷ EMI) ÷ log(1 + r). The EMI must be more than the interest of the first month (r × P), or the loan does not end.
- Interest rate: there is no formula that gives the rate. The calculator tries rates until the EMI is correct (the bisection method), the same method that the RATE function of Excel uses.
In Excel: EMI = PMT(rate/12, months, −loan); loan amount = PV(rate/12, months, −EMI); months = NPER(rate/12, −EMI, loan); yearly rate = RATE(months, −EMI, loan) × 12.
Loan calculator: frequently asked questions
How do I calculate the loan amount from my EMI?
Loan = EMI × ((1 + r)^n − 1) ÷ (r × (1 + r)^n), where r is the yearly rate ÷ 12 ÷ 100 and n is the number of months. Example: an EMI of ₹25,000 at 8.5% for 240 months pays for approximately ₹28.8 lakh.
How many months will it take to repay my loan?
Months = −log(1 − r × loan ÷ EMI) ÷ log(1 + r). Example: ₹10 lakh at 9% with an EMI of ₹15,000 ends in 93 months (the last EMI is smaller). If the EMI is not more than the interest of the first month, the loan does not end.
How do I find the interest rate from the EMI?
There is no formula that gives the rate. The calculator tries rates until the EMI is correct. In Excel, use =RATE(months, −EMI, loan) × 12. Example: ₹10 lakh with an EMI of ₹12,668 for 120 months is 9.00% a year.
Why is the rate from my EMI higher than the rate in my offer?
If the lender adds fees or insurance to the loan, or calculates interest on a flat rate, the EMI is higher than the EMI at the rate of the offer. Thus, the rate from the EMI is higher. Use the KFS / APR checker to find the annual rate with the fees.
Can I use this calculator for a home, car or personal loan?
Yes. The formula is the same for all loans that use a reducing balance and an equal EMI. For a flat-rate loan, convert the rate first with the flat vs reducing rate calculator.