Loan / EMI Calculator

EMI (Equated Monthly Installment) is a fixed amount paid to a lender each month. It has two components: principal repayment and interest. Early EMIs pay more interest; later ones pay more principal.

EMI = [P × r × (1+r)ⁿ] ÷ [(1+r)ⁿ − 1], where P = loan amount, r = monthly interest rate (annual rate ÷ 12 ÷ 100), n = tenure in months. Our calculator uses this formula automatically.

Three factors: Loan Amount (higher loan = higher EMI), Interest Rate (higher rate = higher EMI), and Tenure (longer tenure = lower EMI but more total interest paid over the life of the loan).

You can reduce EMI by making a larger down payment, choosing a longer tenure, negotiating a lower interest rate, or making prepayments to reduce the outstanding principal balance.