What is an EMI?
EMI stands for Equated Monthly Instalment. It is the regular payment made to repay a loan over an agreed period. Each payment generally includes interest on the outstanding balance and a repayment of part of the principal. As the principal balance falls, the interest portion usually decreases and the principal portion increases.
How to use this EMI calculator
- Enter the loan amount you plan to borrow.
- Enter the annual interest rate quoted by your lender.
- Enter the loan tenure in years and, if needed, additional months.
- Click Calculate EMI to see the monthly EMI, total interest and total repayment.
- Choose Show repayment schedule to inspect the monthly principal, interest and remaining balance.
EMI formula
Where:
- P = loan principal
- r = monthly interest rate (annual rate ÷ 12 ÷ 100)
- n = total number of monthly instalments
When the interest rate is 0%, EMI is the principal divided by the number of months.
Example EMI calculation
For a loan of ₹10,00,000 at 8.5% annual interest over 20 years, the calculator converts the annual rate into a monthly rate and applies the reducing-balance formula for 240 instalments. The exact estimate is shown when you enter those values above.
What affects your EMI?
- Loan amount: A larger principal generally means a larger EMI when the rate and tenure stay the same.
- Interest rate: A higher rate usually increases both the monthly instalment and total interest.
- Loan tenure: A longer tenure usually reduces the monthly EMI but increases the total interest paid.
- Fees and insurance: These may increase the overall cost of borrowing even if they are not included in the EMI calculation.
Frequently asked questions
How is EMI calculated?
For a fixed-rate reducing-balance loan, EMI is calculated from the principal, monthly interest rate and total number of monthly payments using the standard amortization formula shown above.
Does a longer tenure reduce EMI?
Usually, yes. A longer tenure spreads repayment over more months, which reduces the monthly instalment but commonly increases the total interest paid.
Can I calculate a 0% interest loan?
Yes. When the interest rate is 0%, the calculator divides the loan principal evenly across the total number of monthly instalments.
Does this include processing fees or insurance?
No. Fees, insurance, taxes and other charges are excluded unless they are part of the loan amount you enter. Check your lender's repayment illustration for the full cost.
Will this match my bank's exact EMI?
It is an estimate using monthly reducing-balance interest. A lender may calculate interest using daily balances, apply different rounding, or adjust the first or final instalment. Confirm the exact repayment schedule with your lender.
Are my loan details uploaded?
This calculator performs its calculation in your browser and does not submit the entered loan values to the server. Your browser and any other site services may have their own behaviour.
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Disclaimer: For general educational use only. This estimate is not a loan offer or financial advice. Review the lender's official terms and repayment schedule before borrowing.