EMI Calculator

Our EMI Calculator helps you plan your loan repayments before borrowing. Here's how to use it:

Step 1: Enter the principal loan amount you wish to borrow.

Step 2: Enter the annual interest rate offered by the lender.

Step 3: Select the loan tenure in months or years.

Step 4: Click 'Calculate' to see your monthly EMI, total interest payable, and total payment amount.

The calculator also displays a detailed amortization schedule showing the month-by-month breakdown of principal and interest components, helping you understand exactly where your money goes.

EMI is calculated using the reducing balance method:

EMI = P × r × (1 + r)^n / [(1 + r)^n - 1]

Where: - EMI = Equated Monthly Installment - P = Principal loan amount - r = Monthly interest rate (annual rate / 12 / 100) - n = Loan tenure in months

Total Interest = (EMI × n) - P

This formula ensures that each EMI payment covers both interest due for the month and a portion of the principal, with the interest component gradually decreasing over time.

An Equated Monthly Installment (EMI) is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. EMIs are applied to both interest and principal each month so that over a specified number of years, the loan is paid off in full.

Understanding your EMI is crucial before taking any loan—whether it's a home loan, car loan, personal loan, or education loan. Our EMI calculator helps you evaluate your monthly financial commitment and plan your budget accordingly. It also helps you compare different loan offers by adjusting the interest rate and tenure to find the most suitable option.

The calculator uses the reducing balance method, which is the standard method used by most banks and financial institutions. In this method, the interest is calculated on the outstanding principal balance, which decreases with each EMI payment. This is more favorable to borrowers compared to the flat-rate method.