Loan EMI Calculator

How EMI Is Calculated

Equated Monthly Installment (EMI) is the fixed monthly payment you make to repay a loan over its term. It's calculated using this formula:

EMI = [P × r × (1 + r)^n] / [(1 + r)^n − 1]

P = Principal (loan amount)
r = Monthly interest rate (annual rate / 12 / 100)
n = Number of monthly installments (years × 12)

What Drives Your EMI?

• Loan amount (P): More principal means bigger EMIs.
• Interest rate (r): Even a 1% change can shift total interest significantly over long tenures.
• Tenure (n): Longer tenures lower EMI but increase total interest paid.

Tips Before You Borrow

• Try different tenures — a shorter tenure means higher monthly EMI but much less lifetime interest.
• Consider prepayment. Even small extra payments early in the term reduce the principal and save you years of interest.
• Compare fixed vs. floating rates. Floating rates are often cheaper now but can rise; fixed rates are predictable.
• Factor in fees — processing charges, insurance, and stamp duty. They're often 1–3% of the loan.

Disclaimer

This calculator is for informational purposes and does not account for taxes, insurance, prepayment penalties, late fees, or variable rates. Consult a qualified financial advisor before making borrowing decisions.