EMI Calculator

Calculate your monthly loan payments instantly with our professional EMI calculator

How to calculate EMI

Understand how your monthly loan installment is calculated using principal, interest rate, and tenure.

EMI Formula

An EMI (Equated Monthly Installment) calculator helps you estimate the monthly repayment amount based on the following:

  1. Input Loan Details: You enter the loan amount, interest rate, and loan tenure.
  2. Calculation: The calculator uses this formula:

EMI = [P × R × (1 + R)N] / [(1 + R)N – 1]

Where:

  • P = Loan Amount
  • R = Monthly Interest Rate (Annual Rate ÷ 12 ÷ 100)
  • N = Loan Tenure in Months

Once calculated, the EMI tool also shows the total interest payable and total repayment amount—helping users assess the cost of borrowing before applying.

Frequently Asked Questions

Answers to common questions about EMI and how it’s calculated

EMI or Equated Monthly Installment is a fixed monthly payment made by a borrower to a lender, consisting of both principal and interest.

EMI is calculated using the formula:
EMI = [P × R × (1 + R)N] / [(1 + R)N – 1]
where P = loan amount, R = monthly interest rate, and N = tenure in months.

EMI depends on the loan amount, interest rate, and tenure. A longer tenure reduces monthly EMI but increases the total interest paid.

It depends on your financial goals. A lower EMI eases monthly burden but costs more long-term. A shorter tenure saves interest but raises EMI.

Prepaying EMIs helps reduce your outstanding principal and interest. Some lenders allow this without penalties, others may charge fees.

Enter your loan amount, interest rate, and tenure. The calculator instantly displays your monthly EMI, total interest, and total repayment.

Yes. You can reduce EMI by choosing a longer tenure, negotiating a lower interest rate, or prepaying part of your loan early.

For fixed-rate loans, EMI stays the same. For floating-rate loans, EMI may change depending on market interest rate fluctuations.