EMI Calculator
Work out your monthly loan payment, total interest and total cost in seconds. Works for home, car, personal and education loans.
How the EMI calculator works
An EMI (equated monthly instalment) is the fixed amount you pay your lender every month until the loan is cleared. Each payment covers some interest and some of the principal. Early on most of it is interest; towards the end most of it is principal.
The calculator uses the standard reducing-balance formula:
EMI = P × r × (1 + r)ⁿ ÷ [(1 + r)ⁿ − 1]
- P is the loan amount (principal).
- r is the monthly interest rate: the yearly rate divided by 12, then by 100.
- n is the number of monthly instalments.
Example
On a loan of ₹10,00,000 at 9% a year for 5 years, r is 0.0075 and n is 60. The EMI works out to about ₹20,758. Over 60 months you would pay ₹12,45,501 in total, of which ₹2,45,501 is interest.
Ways to lower your EMI
- Choose a longer tenure. The EMI drops, but you pay more interest overall.
- Make a larger down payment so you borrow less.
- Compare rates from several lenders before you sign.
- Prepay part of the loan when you have spare cash. This shortens the tenure or reduces the EMI.
This calculator gives an estimate for a fixed-rate loan. Processing fees, insurance and rate changes on floating-rate loans are not included, so check the final figures with your lender.
Frequently asked questions
Is my EMI the same every month?
On a fixed-rate loan, yes. On a floating-rate loan the lender can change the rate, which changes either your EMI or your tenure.
Does the calculator include processing fees?
No. It only covers principal and interest. Processing fees, GST on fees and insurance are charged separately by the lender.
What is better, a shorter or a longer tenure?
A shorter tenure means a higher EMI but much less interest. A longer tenure keeps the EMI small but costs more overall. Pick the shortest tenure whose EMI you can pay comfortably.