🏠 EMI Calculator

Understanding Your Loan EMI

An EMI (Equated Monthly Instalment) is the fixed amount you repay to a lender every month until your loan is cleared. Each EMI is made up of two parts — a portion that repays the principal you borrowed, and a portion that pays the interest charged by the bank. In the early months most of your EMI goes toward interest; over time, more of it chips away at the principal.

Our EMI calculator uses the standard reducing-balance formula: EMI = P × r × (1+r)^n ÷ [(1+r)^n − 1], where P is the loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the number of monthly instalments. Just enter your loan amount, interest rate and tenure to see your monthly EMI, total interest, and total repayment instantly.

For example, a ₹10,00,000 loan at 9% for 5 years works out to an EMI of about ₹20,758, with roughly ₹2.45 lakh paid as interest over the full term. A longer tenure lowers the monthly EMI but increases the total interest you pay — so always compare a few tenures before deciding.

Key points to remember

• A shorter tenure means a higher EMI but far less total interest.
• Prepaying early in the loan removes the most future interest.
• Keep your total EMIs under about 40% of your monthly take-home income.

Frequently asked questions

No — it lowers the monthly EMI but increases the total interest you pay over the life of the loan.

For fixed-rate loans, yes. For floating-rate loans, the EMI (or tenure) can change when the benchmark rate changes.