EMI Calculator
| Year | Principal Paid | Balance Left |
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You can also use SIP Calculator
What This Tool Does
Enter a loan amount, interest rate, and repayment period, and this tool tells you your fixed monthly payment — the EMI. It works for home loans, car loans, personal loans, or any other loan repaid in equal monthly installments.
How It's Calculated
EMI stands for Equated Monthly Installment — the same amount paid every month until the loan is cleared. Each payment covers part interest, part principal.
The formula:
E = P × r × (1 + r)^n / ((1 + r)^n − 1)
- E — EMI amount
- P — principal (loan amount)
- r — monthly interest rate (annual rate ÷ 12 ÷ 100)
- n — tenure in months
Example: Borrow ₹5,00,000 at 9% annual interest for 5 years (60 months).
- Monthly rate: 9 ÷ 12 ÷ 100 = 0.0075
- E = 5,00,000 × 0.0075 × (1.0075)^60 / ((1.0075)^60 − 1) ≈ ₹10,379/month
- Total paid over 60 months: ~₹6,22,740
- Total interest: ~₹1,22,740
Why the Interest-to-Principal Ratio Shifts
The EMI stays the same every month, but what it covers doesn't. Early payments go mostly toward interest, since interest is calculated on the outstanding balance — which is highest at the start. As the balance shrinks, more of each payment chips away at the principal instead.
Fixed vs. Floating Interest Rates
With a fixed rate, the EMI never changes for the loan's life. With a floating rate, it can shift if the lender's benchmark rate moves — often tied to a central bank's policy rate.
If you're taking a floating-rate loan, it helps to check your EMI under two scenarios: rates dropping by 1–3%, and rates rising by 1–3%. A small rate increase can raise your monthly payment more than expected over a long tenure, so it's worth confirming you could still manage the higher figure before committing.
Who Uses This
- Comparing monthly payments across different loan amounts or tenures before applying
- Checking affordability before committing to a home, car, or personal loan
- Testing how a shorter tenure changes the EMI and total interest paid
- Estimating the total interest cost over the life of a loan
EMI vs. Total Loan Cost
EMI is just the monthly figure — it doesn't show the full picture. Multiply EMI by the number of months to get the total repayment amount, then subtract the principal to see the total interest paid. A lower EMI from a longer tenure often means paying more interest overall.
FAQs
Does a longer tenure always mean a lower EMI?
Yes, but it usually increases the total interest paid over the loan's life.
Can I reduce my EMI after taking the loan?
Often, through prepayment of principal or refinancing at a lower rate, if your lender allows it.
Does this calculator include processing fees?
No. It calculates EMI based on principal, rate, and tenure only — other charges aren't included.
Why did my EMI change on a floating-rate loan?
The lender's benchmark interest rate moved, which adjusts your rate and monthly payment.
Is a shorter tenure always better?
It usually reduces total interest but raises the monthly payment — the right choice depends on what you can comfortably pay each month.
Try It Above
Enter your loan amount, rate, and tenure to see your EMI instantly. This is an estimate for planning purposes only, not a loan offer.