How to use the EMI Calculator
- Enter the loan amount you want to borrow.
- Enter the annual interest rate offered by your lender.
- Enter the loan tenure in years or months.
- Your EMI, total interest and total payment update instantly.
What is EMI?
EMI (Equated Monthly Instalment) is the fixed amount you pay your lender every month until a loan is fully repaid. Each EMI contains two parts: interest on the outstanding balance and a repayment of principal. In the early months most of the EMI goes towards interest; towards the end most of it reduces the principal.
EMI formula
EMI is calculated with 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 – number of monthly instalments
Example: a loan of 10,00,000 at 9% for 20 years gives r = 0.0075 and n = 240, so the EMI is about 8,997 and the total interest is about 11,59,300.
How to reduce your EMI
- Choose a longer tenure – lowers the EMI but increases total interest.
- Make a larger down payment – a smaller principal means a smaller EMI.
- Compare lenders – even a 0.5% lower rate saves a lot over a long loan.
- Prepay when you can – part-prepayments reduce the outstanding principal.
Frequently asked questions
Is the EMI the same every month?
Yes, for a fixed-rate loan the EMI stays the same for the whole tenure. For floating-rate loans the lender may change the EMI or the tenure when rates change.
Does this calculator include processing fees?
No. It calculates principal and interest only. Processing fees, insurance and taxes charged by the lender are extra.
Which is better: a lower EMI or a shorter tenure?
A shorter tenure means a higher EMI but much less total interest. Choose the shortest tenure whose EMI you can comfortably afford.