What is EMI?
EMI, or equated monthly instalment, is the fixed amount you pay every month to repay a loan. Each EMI has two parts: interest on the loan still left, and a part of the loan itself.
How to use this calculator
- Enter the loan amount.
- Enter the yearly interest rate.
- Enter the tenure in months (12 months = 1 year).
Formula
EMI = P × r × (1 + r)n ÷ [(1 + r)n − 1], where P is the loan, r the monthly rate (yearly % ÷ 12 ÷ 100) and n the months.
Read more: What is EMI?. New to these words? See the money glossary.
Common questions
What is the EMI on ₹10 lakh for 5 years at 10%?
About ₹21,247 a month. Total interest is about ₹2.75 lakh.
Does a longer tenure reduce EMI?
Yes, but you pay much more interest in total. Pick the shortest tenure whose EMI you can manage comfortably.
How is EMI calculated?
With the formula EMI = P × r × (1 + r)ⁿ ÷ [(1 + r)ⁿ − 1], where P is the loan, r the monthly rate and n the months. The calculator does this for you.
EMI kaise nikale?
Loan ki raqam, saalana byaj dar aur mahine daaliye. Calculator turant EMI, kul byaj aur saal-dar-saal table dikha deta hai.
What is a loan amortization schedule?
It is the table that shows, for every year (or month), how much of your EMI went to interest, how much reduced the loan, and the loan left. Early EMIs are mostly interest.
Can I use this EMI calculator for an education loan or loan against property?
Yes. Every EMI loan uses the same formula: enter the loan amount, the interest rate your lender offers and the tenure in months.
Does a lower interest rate or a shorter tenure save more?
Both cut total interest. A shorter tenure raises the EMI but saves the most interest; a lower rate lowers both the EMI and the interest.