EMI Calculator

LOAN AMOUNT
INTEREST RATE (%)
TENURE (YEARS)
Monthly EMI
0
Principal0
Interest0
Total Payable0

What is Equated Monthly Installment (EMI)?

An EMI (Equated Monthly Installment) is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. Equated monthly installments are used to pay off both interest and principal each month so that over a specified number of years, the loan is paid off in full.

How to Use This EMI Calculator

Using our online tool is simple and instant. Follow these steps:

  • Step 1: Enter your total Loan Amount (Principal) using the slider or input box.
  • Step 2: Enter the Annual Interest Rate offered by your bank or lender.
  • Step 3: Select the Tenure (duration) of the loan in years.
  • Step 4: The tool instantly displays your monthly payment, total interest payable, and the total amount to be repaid.

Key Factors Affecting Your EMI

Understanding these three components will help you plan your finances better:

  • Loan Amount (Principal): The total amount you borrow. A higher loan amount results in a higher EMI.
  • Interest Rate: The percentage charged by the lender. Even a 0.5% difference can significantly change your total payable amount over 20 years.
  • Tenure: The time period for repayment. A longer tenure reduces your monthly EMI but increases the total interest you pay over time.

Mathematical Formula

The standard formula used by banks globally to calculate EMI is:

E = P x R x (1+R)^N / [(1+R)^N-1]

Where: E = EMI, P = Principal Loan Amount, R = Monthly Interest Rate (Annual Rate/12/100), N = Loan Tenure in Months.

Frequently Asked Questions (FAQ)

A Floating Rate (or variable rate) is generally 1-2% cheaper initially but fluctuates with market trends. If interest rates rise, your EMI increases. A Fixed Rate remains the same throughout the tenure, offering financial certainty but usually at a slightly higher starting rate.

Yes, but the proportion changes over time. In the initial years of your loan, a major portion of your EMI goes towards paying off the Interest. As the tenure progresses, the interest component decreases, and a larger portion goes towards repaying the Principal.

Yes! Prepayment is one of the best ways to save money. By paying a small lump sum (even one extra EMI per year), you can drastically reduce your loan tenure and total interest payout. Check with your bank for any prepayment penalty clauses.

Missing an EMI attracts late payment fees and penal interest. More importantly, it negatively impacts your Credit Score (CIBIL/FICO), which can make it difficult to get loans in the future.

This calculator uses the standard banking formula applicable globally. However, some banks may include processing fees, insurance, or other charges in the final loan agreement, which might slightly alter the effective monthly outflow.

Yes, increasing the tenure reduces the monthly EMI amount, making it more affordable month-on-month. However, it significantly increases the total interest you pay to the bank over the life of the loan.