EMI calculator
EMI Calculator: Understand Your Loan's Monthly Outflow
Whether you are planning a home loan, car loan, or personal loan, knowing your Equated Monthly Installment upfront helps you budget accurately and compare offers across lenders. This EMI calculator uses the standard reducing-balance formula banks apply, so the numbers you see here closely match what a lender will quote you.
Enter your loan amount, annual interest rate, and tenure below to see your monthly EMI, total interest paid, and total repayment over the loan's life. Try adjusting the tenure to see the trade-off between a lower EMI and lower total interest cost.
Estimated monthly EMI
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Frequently asked questions
What is an EMI calculator?
An EMI calculator computes your Equated Monthly Installment for a loan based on the principal amount, annual interest rate, and loan tenure, using the standard amortization formula banks use.
How is EMI calculated?
EMI is calculated using the reducing balance method, where each installment covers both interest on the outstanding principal and a portion of the principal itself, with the interest component decreasing over the loan tenure.
Does a longer tenure reduce my EMI?
Yes, a longer tenure lowers your monthly EMI but increases the total interest paid over the life of the loan. A shorter tenure raises the EMI but reduces total interest paid.
Can I prepay my loan to reduce interest?
Most lenders allow partial or full prepayment, which reduces the outstanding principal and can significantly cut total interest paid, though some loans carry prepayment charges, especially for fixed-rate loans.
Does this calculator include processing fees or insurance?
No. This calculator computes the pure EMI based on principal, rate, and tenure. Processing fees, insurance premiums, and other charges are added separately by lenders and should be factored into your total cost of borrowing.
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