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EMI Calculator
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Show formula & working
EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1)
P = loan amount, r = annual interest rate ÷ 12 ÷ 100, n = number of monthly instalments. Interest each month = balance at the start of the month × r; the rest of the EMI repays principal.Details
How this works
An EMI is a fixed monthly payment that covers that month's interest and repays a slice of the loan. Because the balance falls each month, the interest part shrinks and the principal part grows.
The total interest you pay depends on the rate and, even more, on the tenure: a longer tenure lowers the EMI but raises the total interest.
Frequently asked questions
How is EMI calculated?
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan, r the monthly rate (annual rate ÷ 12 ÷ 100) and n the number of months. For example, ₹10 lakh at 9% for 20 years is an EMI of ₹8,997.26.
Does a longer tenure save money?
No. It lowers the EMI but you pay interest for longer, so the total interest rises. Choose the shortest tenure whose EMI fits comfortably in your budget.
Why is my lender's figure slightly different?
Lenders may round the EMI, charge broken-period interest before the first EMI, or work out interest on a daily basis. Your repayment schedule from the lender is the final reference.
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