Loan EMI calculator
Monthly instalment, total interest and an amortisation schedule for any loan from principal, rate and term.
Your instalment
An equated monthly instalment (EMI) is the fixed payment that repays a loan with interest over a set number of months. The formula is EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the principal, r the monthly rate (annual rate ÷ 12) and n the number of months. Enter those three figures and the tool shows the instalment, the total you will pay and how much of that is interest.
The amortisation schedule breaks each payment into principal and interest. Early payments are mostly interest because the balance is high; later ones are mostly principal. The first twelve months are listed in full, and loans longer than a year get yearly totals, which keeps the page fast even for a 30-year mortgage.
Banks in the UAE and Saudi Arabia usually quote a "flat rate" alongside the reducing rate used here. A flat rate charges interest on the original principal for the whole term and is roughly 1.8 times the equivalent reducing rate, so make sure you enter the reducing (annual percentage) rate. Fees, insurance and profit-rate structures in Islamic financing are not modelled.
How to use it
- Enter the loan amount (principal).
- Enter the annual interest rate as a percentage; use the reducing-balance rate, not a flat rate.
- Enter the term in months (5 years = 60).
- Read the EMI, total interest and total payment; expand the schedule to see the split for each month and each year.
Frequently asked questions
What is the difference between flat and reducing interest rates?
A reducing rate is charged on the outstanding balance, which falls each month; this calculator uses it. A flat rate is charged on the original principal for the whole term, so a 4% flat rate costs about the same as a 7 to 7.5% reducing rate on a 5-year loan.
Why does the last instalment differ by a few cents?
Each payment is rounded to two decimals, so tiny rounding differences accumulate. The final row absorbs them so the balance ends at exactly zero, exactly as a bank statement does.
Can I see the effect of paying extra each month?
Not directly. To approximate it, shorten the term until the EMI matches the amount you plan to pay; the schedule then shows how much sooner the loan ends and how much interest you save.
Does this work for Islamic financing (murabaha, ijara)?
The arithmetic of a fixed profit rate on a reducing balance is the same, so you can enter the profit rate as the annual rate. Structures with a fixed total profit agreed up front behave like a flat rate and will not match.
What if the interest rate is 0%?
The instalment is simply the principal divided by the number of months, and the schedule shows no interest.
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