EMI Calculator
Loan Details
Your Monthly EMI
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 fully paid off along with interest.
How to Use the EMI Calculator?
Using our EMI calculator helps you plan your loan repayments with accuracy. You simply need to adjust three core inputs:
- Loan Amount (Principal): The total amount of money you wish to borrow from the bank or financial institution.
- Interest Rate (%): The annual interest rate offered by the lender.
- Loan Tenure: The duration in which you intend to repay the loan, usually expressed in years or months.
The EMI Calculation Formula
Our calculator uses the standard mathematical formula for EMI calculations adopted by all major banks and financial institutions worldwide:
Where:
E = EMI Amount
P = Principal Loan Amount
r = Monthly Interest Rate (Annual Interest Rate / 12 / 100)
n = Loan Tenure in months
Frequently Asked Questions (FAQs)
Does the EMI remain constant throughout the loan?
If you have opted for a fixed interest rate loan, your EMI will remain the same throughout the tenure. However, if you have a floating interest rate, your EMI may change when the lender revises their interest rates.
What is the difference between principal and interest in an EMI?
Every EMI consists of two parts: the principal repayment and the interest payment. In the initial years of the loan, a larger portion of your EMI goes toward paying the interest. Towards the end of the loan tenure, the principal repayment makes up the larger portion.
How does loan tenure affect my EMI?
A longer loan tenure significantly reduces your monthly EMI, making it more affordable in the short term. However, a longer tenure also means you will end up paying a much higher total interest amount over the life of the loan.