Free Tool
EMI Calculator
Calculate your monthly EMI, total interest, and total repayment amount for any loan — instantly.
EMI Calculator
How It Works
Understanding EMI calculation
EMI is calculated using the reducing-balance method: EMI = P × r × (1+r)ⁿ ÷ ((1+r)ⁿ − 1), where P is your loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the loan tenure in months.
Each EMI payment covers a portion of interest and a portion of principal. Early in the loan, more of each EMI goes toward interest; later, more goes toward reducing the principal balance.
FAQ
Frequently asked questions
What is EMI?
EMI (Equated Monthly Installment) is a fixed payment amount a borrower repays to a lender every month, covering both principal and interest, until the loan is fully repaid.
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 principal, r is the monthly interest rate, and n is the number of monthly installments.
Does EMI stay the same throughout the loan?
For a standard fixed-rate loan, yes — the EMI amount stays constant, though the split between principal and interest within each EMI changes over time.
What's the difference between total interest and total payment?
Total interest is the extra amount paid over and above the loan principal. Total payment is the principal plus total interest — the full amount repaid over the loan's life.
Does a longer tenure mean lower EMI?
Yes, a longer tenure spreads repayment over more months, lowering the EMI amount — but it also increases the total interest paid over the life of the loan.
Is this EMI calculator accurate for all loan types?
This calculator uses the standard reducing-balance EMI formula used for most personal, business, home, and vehicle loans in India.
Is this calculator free to use?
Yes, completely free with no sign-up required, and you can recalculate as many times as you need.
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