About this tool
An EMI (Equated Monthly Installment) is the fixed amount you pay every month toward a loan until it's fully repaid, covering both principal and interest. This calculator works for home loans, car loans, personal loans, or any other fully amortizing loan — just enter the loan amount, interest rate, and tenure to see your exact monthly payment.
Along with the EMI, you'll get the total interest payable over the life of the loan and the total amount you'll repay, so you can compare loan offers or decide how much you can comfortably borrow before applying.
How to use it
- Enter the loan amount (principal) you plan to borrow.
- Enter the annual interest rate offered by your bank or lender.
- Set the loan tenure in months or years.
- View your monthly EMI, total interest, and total payment instantly.
Frequently asked questions
How is EMI calculated?
EMI is calculated using the formula E = P × r × (1+r)^n / ((1+r)^n − 1), where P is the principal, r is the monthly interest rate, and n is the number of monthly installments.
What's the difference between flat rate and reducing balance EMI?
Under a reducing balance method (used by almost all banks), interest is charged only on the outstanding principal, so the interest portion of your EMI drops over time. A flat rate charges interest on the original amount throughout, which usually works out more expensive.
Does a longer tenure always mean lower EMI?
Yes, a longer tenure lowers your monthly EMI, but increases the total interest you pay over the life of the loan. A shorter tenure means a higher EMI but less interest overall.
Can I use this for a home loan and a personal loan?
Yes, the formula is the same for any fully amortizing loan — home, car, personal, or education loans. Just enter the specific principal, rate, and tenure for that loan.