Find your monthly EMI, total interest and full repayment schedule for home, car and personal loans.
How does an EMI calculator work?
An EMI (Equated Monthly Instalment) is the fixed amount you pay your lender every month. It covers both the interest and a part of the loan principal. In the early years most of your EMI goes towards interest, and over time more of it goes towards the principal.
This calculator uses the reducing-balance method followed by most banks, so interest is charged only on the outstanding loan amount each month.
EMI formula
EMI = P × r × (1 + r)ⁿ ÷ [(1 + r)ⁿ − 1]
P = loan amount · r = monthly interest rate (annual rate ÷ 12 ÷ 100) · n = number of monthly instalments
Example
For a loan of ₹10,00,000 at 9% per year for 5 years, the monthly EMI is about ₹20,758. You pay roughly ₹2.45 lakh in interest, so the total repayment is about ₹12.45 lakh.
How to lower your EMI
- Increase your down payment so you borrow less.
- Compare lenders and negotiate a lower interest rate.
- Choose a longer tenure. Your EMI drops, but total interest rises.
- Make part-prepayments to cut both tenure and interest.
Frequently asked questions
What is EMI?
EMI (Equated Monthly Instalment) is the fixed amount you pay to a lender every month until your loan is fully repaid. Each EMI includes a part of the principal and the interest.
How is EMI calculated?
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r is the monthly interest rate and n is the number of monthly instalments.
How can I reduce my EMI?
You can lower your EMI by choosing a longer tenure, making a bigger down payment, negotiating a lower interest rate, or making part-prepayments. A longer tenure lowers the EMI but increases the total interest paid.
Does a longer tenure save money?
No. A longer tenure gives a smaller monthly EMI, but you pay interest for more months, so the total cost of the loan goes up.
Is this EMI calculator accurate?
It uses the standard reducing-balance formula used by most banks. Your lender’s figure may differ slightly because of processing fees, rounding or rate changes.
This calculator gives estimates for information only and is not financial advice. Confirm exact figures with your lender.
