EMI Calculator
Calculate your monthly EMI, total interest and total payment for any loan.
How to use
- Enter the loan amount you're borrowing.
- Enter the yearly interest rate your lender quoted.
- Set the tenure in years - your EMI, total interest and total payment update instantly.
Frequently asked questions
What formula is used?
The standard reducing-balance formula: EMI = P × i × (1+i)ⁿ / ((1+i)ⁿ − 1), where P is principal, i the monthly interest rate, and n the number of months.
Why does my bank's EMI differ slightly?
Banks may add processing fees, insurance, or round differently. This calculator gives the standard mathematical EMI.
Is this financial advice?
No - it's an estimate for general information. Confirm exact figures with your lender before deciding.
Know your loan repayment before you borrow
An EMI - equated monthly installment - is the fixed amount you pay each month over a loan's life, covering both interest and principal. This calculator turns the three numbers a lender quotes (amount, interest rate, tenure) into the figures that actually affect your life: your monthly payment, the total interest you'll pay, and the total cost of the loan. Seeing the total interest is often the eye-opener - on a long home loan it can rival the principal itself.
How the EMI is calculated
It uses the standard reducing-balance formula: EMI = P × i × (1+i)ⁿ ÷ ((1+i)ⁿ − 1), where P is the principal, i the monthly interest rate, and n the number of months. 'Reducing balance' means interest each month is charged only on the outstanding amount, so as you pay down the principal the interest portion shrinks and more of each EMI goes to principal. Your bank's figure may differ by a little because of processing fees, insurance add-ons or rounding - this gives the clean mathematical baseline to check their quote against.
Using it to make better decisions
Try a few scenarios before committing: a shorter tenure raises the monthly EMI but slashes total interest, sometimes dramatically; a slightly lower rate compounds into large savings over decades. Check that the EMI fits comfortably within your budget - lenders cap total EMIs at roughly 40-55% of income, which our Loan Eligibility Calculator estimates. For savings and investments, the SIP and Compound Interest calculators apply the same time-value-of-money logic in the other direction. Remember this is an estimate for planning, not financial advice - confirm exact terms with your lender.