EMI Calculator
Calculate monthly loan EMI payments instantly.
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How to use EMI Calculator
1
Enter the total loan amount you want to borrow.
2
Enter the annual interest rate offered by your bank or lender.
3
Enter the loan tenure and select whether it is in Years or Months.
4
Click "Calculate EMI" to see your monthly EMI, total interest, and a visual breakdown.
How it works
EMI (Equated Monthly Installment) is calculated using the standard reducing balance formula:
EMI = P × R × (1+R)N / ((1+R)N − 1)- P = Principal loan amount
- R = Monthly interest rate = (Annual rate / 12) / 100
- N = Total number of monthly installments
For a 0% interest rate, the formula simplifies to: EMI = P / N
This is the standard formula used by banks and financial institutions in India for home loans, car loans, and personal loans.
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Frequently Asked Questions
What is EMI?
EMI stands for Equated Monthly Installment. It is the fixed amount you pay every month to repay a loan. Each EMI payment includes both principal repayment and interest. In the early months, a larger portion goes towards interest; over time, the principal portion increases.
How is EMI calculated?
EMI is calculated using the formula: EMI = P × R × (1+R)^N / ((1+R)^N − 1), where P is the loan amount, R is the monthly interest rate (annual rate / 12 / 100), and N is the total number of monthly installments.
Does a higher tenure reduce EMI?
Yes, a longer tenure reduces the monthly EMI, but you end up paying more total interest over the life of the loan. A shorter tenure means higher EMI but less total interest paid.
Can I use this for any type of loan?
Yes, this calculator works for any reducing-balance loan including home loans, car loans, personal loans, and education loans. It uses the standard EMI formula used by all major Indian banks.
What happens at 0% interest?
If the interest rate is 0%, the EMI is simply the loan amount divided by the number of months (P / N). No interest is charged, so the total payment equals the principal.