Loan EMI Calculator
Calculate your monthly EMI for home, car, or personal loans.
What is an EMI?
Equated Monthly Installment (EMI) is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. Equated monthly installments are used to pay off both interest and principal each month so that over a specified number of years, the loan is paid off in full.
How EMI is Calculated
The mathematical formula for calculating EMI is:
EMI = P × r × (1 + r)ⁿ / ((1 + r)ⁿ - 1)
Where:
- P is the Principal Loan Amount
- r is the monthly interest rate (Annual Rate / 12 / 100)
- n is the loan tenure in months
Factors Affecting Your EMI
Three main factors determine your monthly outflow:
- Loan Amount: Higher loan amount means higher EMI.
- Interest Rate: Use this calculator to compare offers from different banks. Even a 0.5% difference matters.
- Tenure: Longer tenure reduces monthly EMI but increases total interest payable.
Reducing Your EMI
You can reduce your EMI by making a larger down payment, negotiating a lower interest rate, or opting for a longer tenure (though this increases total cost). Prepayments can also help reduce the tenure or future EMIs.