What is an EMI Calculator?

An EMI (Equated Monthly Instalment) calculator helps you determine the fixed monthly amount you need to pay towards your loan. It combines both interest and principal repayment, allowing you to plan your finances with precision before borrowing.

How Does It Calculate EMI?

The calculator uses a standard compound interest formula to determine your monthly repayment. The EMI is derived from:

EMI = [ P × r × (1 + r)N ] / [ (1 + r)N - 1 ]
          

• P = Principal loan amount

• r = Monthly interest rate (annual rate ÷ 12 ÷ 100)

• N = Loan tenure in months

The EMI remains constant throughout the loan tenure, though the portion of interest and principal changes every month — initially, you pay more interest and less principal, and towards the end, more principal and less interest.

Benefits of Using the EMI Calculator

• Compare loan options and choose the best combination of tenure and rate.

• Instant results with accurate EMI, total interest, and total repayment estimates.

• Helps plan your monthly budget before applying for a loan.

Example

For a loan of ₹5,00,000 at 10% annual interest for 5 years:

• EMI = ₹10,624 per month
• Total Payment = ₹6,37,440
• Total Interest = ₹1,37,440

Thus, a small change in interest rate or tenure can significantly affect your EMI and total repayment amount.

Why Use This Calculator Before Taking a Loan?

By using this EMI Calculator, you can quickly assess how different loan terms impact your finances. This ensures you choose a loan plan that fits your income and minimizes financial stress in the future.