EMI Calculator (Loan Instalment)
Work out the equated monthly instalment for any loan from principal, annual interest rate and tenure — with total interest payable, exactly as the annuity formula in CA Foundation's Time Value of Money chapter computes it.
EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1), where P is principal, r the monthly rate (annual ÷ 12 ÷ 100) and n the number of monthly instalments.
How it works
- Enter loan amount, annual interest rate and tenure in months or years.
- The calculator converts the rate to monthly compounding and applies the standard annuity formula.
- Results show EMI, total payment and total interest over the tenure.
Where this shows up in the CA exam
The same present-value-of-annuity mathematics appears in CA Foundation Quantitative Aptitude (Time Value of Money) and again in Intermediate FM (loan amortisation and leasing decisions). Understanding the formula beats memorising it — the calculator shows every input's effect instantly.
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Talk to usWhat is the EMI formula?
EMI = P × r × (1+r)^n ÷ ((1+r)^n − 1), where P is the principal, r is the monthly interest rate and n is the number of monthly instalments. It is the annuity payment that amortises the loan exactly over n months.
Why does early tenure mostly pay interest?
Interest accrues on the outstanding balance, which is highest at the start. Each EMI first covers that month's interest; only the remainder reduces principal, so the principal component grows over the tenure.
Where does EMI maths appear in the CA syllabus?
In Foundation Paper 3 (Time Value of Money — annuities and present value) and Intermediate Financial Management (loan amortisation schedules and lease-vs-buy analysis).