EMI Calculator
Drag the sliders or type exact values — your EMI updates live.
How EMI Calculator Works
An EMI (Equated Monthly Installment) is the fixed monthly payment you make toward a loan until it's fully repaid. Each installment is a mix of interest and principal, calculated so that every payment is the same amount even though the balance -- and the interest charged on it -- shrinks a little more each month.
Formula & Method
This calculator uses the standard reducing-balance EMI formula: EMI = P × r × (1 + r)n / ((1 + r)n − 1), where P is the loan principal, r is the monthly interest rate (the annual rate divided by 12 and converted to a decimal), and n is the total number of monthly installments (years × 12). This is the same formula banks use for standard amortizing loans -- home loans, car loans, and most personal loans.
Worked Example
For a ₹5,00,000 loan at 8.5% annual interest over 20 years: the monthly rate is 8.5% ÷ 12 = 0.7083%, and there are 240 monthly installments. Plugging these into the formula gives an EMI of about ₹4,339 per month. Over the full 20 years you'd pay roughly ₹10,41,400 in total -- about ₹5,41,400 of that is interest, more than the original loan amount, which is the nature of a long tenure at this rate.
Frequently Asked Questions
- Does a longer tenure always mean a lower EMI?
- Yes -- stretching the same loan over more months always lowers the monthly EMI, but it increases the total interest paid over the life of the loan, since interest keeps accruing on the outstanding balance for longer.
- Why does so much of my early EMI go toward interest?
- In a reducing-balance loan, interest for a given month is calculated on whatever principal is still outstanding. Early on the balance is at its highest, so the interest portion of each EMI is largest then; as the balance shrinks, more of each fixed EMI goes toward principal instead.
- What happens if my interest rate is 0%?
- The formula divides by zero at exactly 0% interest, so this calculator falls back to simple division (principal ÷ number of months) for that edge case -- which is also the mathematically correct EMI when there's truly no interest.
- Does this include processing fees or other loan charges?
- No -- this is the pure interest-and-principal EMI based on the rate and tenure you enter. Processing fees, insurance premiums, and other charges some lenders add are not included, since they vary by lender and aren't part of the EMI formula itself.