EMI Calculator

About the EMI Calculator

An Equated Monthly Instalment (EMI) is the fixed amount you repay to a lender every month until your loan is fully cleared. Each EMI has two parts: a portion that pays off the interest charged for the month and a portion that reduces the outstanding principal. In the early months most of your EMI goes towards interest, and as the balance falls, a larger share starts chipping away at the principal. This is why paying off a loan feels slow at first and speeds up towards the end of the tenure.

Lenders in India calculate EMIs on a reducing-balance basis using the formula EMI = P x r x (1 + r)^n / ((1 + r)^n - 1), where P is the loan principal, r is the monthly interest rate (annual rate divided by 12, expressed as a decimal) and n is the number of monthly instalments. Because interest is charged only on the balance still owed, reducing-balance EMIs are far cheaper than flat-rate calculations, so always confirm which method a lender uses before comparing offers.

Use this calculator to test different combinations of loan amount, interest rate and tenure. A longer tenure lowers the monthly EMI but raises the total interest you pay, while a shorter tenure does the opposite. Seeing these trade-offs in numbers helps you pick an EMI that fits your monthly budget without overpaying on interest across the life of the loan.

How to use it

• Enter the loan amount, annual interest rate and tenure to instantly see your EMI, total interest and total repayment.
• Try a shorter tenure to see how much interest you can save, then check whether that higher EMI fits your budget.
• Keep your total EMIs across all loans below about 40-50% of your monthly take-home income for comfort.
• Remember to add processing fees, GST and insurance charges, which are not part of the EMI but add to your cost.