EMI Calculator
Calculate your Equated Monthly Installment (EMI) for any loan.
Loan Details
Payment Breakdown
Monthly EMI
₹0
Principal Amount
₹0
Total Interest
₹0
Total Payment
₹0
How It Works: Understanding Your EMI
An Equated Monthly Installment (EMI) is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. EMIs are used to pay off both interest and principal each month so that over a specified number of years, the loan is paid off in full.
The Formula Used
The mathematical formula to calculate EMI is:
EMI = [P x R x (1+R)^N] / [(1+R)^N-1]
Where:
- P is the Principal Loan Amount.
- R is the monthly interest rate (annual rate divided by 12).
- N is the number of monthly installments (loan tenure in years multiplied by 12).
Example Calculation
Let's use the default values from our calculator:
- Loan Amount (P): ₹10,00,000
- Annual Interest Rate: 8.5% (so Monthly Rate (R) is 8.5 / 12 / 100 = 0.007083)
- Loan Tenure: 10 years (so Number of Months (N) is 10 * 12 = 120)
Plugging these into the formula gives an EMI of approximately ₹12,400.
Tips to Reduce Your EMI Burden
Make Prepayments
Use bonuses or extra income to pay off a part of the principal. This reduces the total interest paid significantly.
Opt for a Longer Tenure
A longer repayment period reduces your monthly EMI, making it more manageable, though you might pay more interest overall.
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