Loan EMI Calculator
Calculate your Equated Monthly Installment (EMI) for any loan. Enter the loan amount, interest rate, and loan tenure to see your monthly payment, total interest, and total repayment.
Monthly EMI
How EMI is Calculated
EMI (Equated Monthly Installment) is calculated using the reducing balance method. Each EMI payment includes both principal and interest components. As you pay down the loan, the interest portion decreases while the principal portion increases.
EMI Formula
Where:
P = Principal loan amount
r = Monthly interest rate (annual rate / 12 / 100)
n = Total number of months
Example Calculation
Example
Loan Amount: ₹10,00,000
Interest Rate: 10.5% per annum
Tenure: 10 years (120 months)
Monthly EMI: ₹13,493
Total Interest: ₹6,19,160
Total Payment: ₹16,19,160
Useful Tips
- Shorter loan tenures mean higher EMIs but lower total interest
- Making prepayments or part-payments reduces your outstanding principal and total interest
- Compare interest rates from multiple lenders before finalizing a loan
Frequently Asked Questions
EMI stands for Equated Monthly Installment. It's the fixed amount you pay each month to repay a loan over a specified period. Each EMI contains both principal repayment and interest payment.
You can reduce your EMI by: (1) Extending the loan tenure, (2) Making a larger down payment to reduce the principal, (3) Negotiating a lower interest rate, or (4) Transferring the loan to a lender offering lower rates.
For fixed-rate loans, EMI remains constant throughout the tenure. For floating-rate loans, EMI can change when the interest rate changes. Some lenders adjust the EMI amount while others adjust the tenure.